Audio By Carbonatix
The bond market could recover as the macro economy improves gradually while the government continues to service the new and old papers.
However, the recovery could remain distant from pre-Domestic Debt Exchange Programme (DDEP) levels as investors maintain a firm interest in T-bills.
“We anticipate new post-DDEP record highs as investors spice up market activity with the Repo strategy”, Databank Research said.
Meanwhile, there is an expected uptick in corporate issuance as yields exit the 30% territory.
Corporate entities are therefore expected to raise funds on the fixed-income market as the regulator works to operationalise the commercial paper market for shorter-dated securities.
“We believe improving liquidity levels in the money market and yield expectations will augur well for corporate issuance in 2024. We expect corporate insurance will present competitive opportunities to investors seeking to diversify investment portfolios from longer-dated GoG [Government of Ghana] securities”, Databank Research added.
In 2023, the secondary bond market showed some potency following the DDEP.
Despite a slight upturn in turnover, it was generally listless as investor appetite favoured shorter-dated securities.
Most activity recorded in the market constituted bond exchanges and repos banks used to manage liquidity.
Ghana completed DDEP in quarter one , 2023
Ghana completed the first phase of the Domestic Debt Exchange Program in the first quarter of 2023, exchanging GH¢82.99bn old bonds for new ones with an 85% success rate.
In the third quarter of 2023, the second phase had a high participation rate of 92% ($741.34 million) and 97% (GH¢7.70 billon) for restructuring US dollar-denominated domestic bonds and Cocoa bills, respectively.
Latest Stories
-
The world’s oldest president left for a ‘brief stay’ in Europe. He hasn’t returned in two months
9 minutes -
Parliamentary committee commends GIPA’s investment drive, backs key reforms
14 minutes -
Livestream: Newsfile discusses AKSA energy deal, legal vacation and GoldBod losses
35 minutes -
Jason Arday: 10 things you may not know about British-born Ghanaian former Cambridge professor found dead at 41
3 hours -
KNUST partners with government to manufacture locally-made agricultural machines and smart traffic lights
3 hours -
Government to add constitutional referendum to 2027 District Assembly elections
4 hours -
Ambassador Nancy Sam meets South Africa’s Thanda to strengthen Africa tourism collaboration
4 hours -
Government disburses GH¢23.1 billion to clear road contractors’ arrears – Roads Minister
5 hours -
NPP Ashanti elections: 1,020 delegates to choose 11 regional executives
5 hours -
Galamsey: ‘Challenge is prosecution, not arrest’ — Lands Minister
6 hours -
Elliot Kabutey Tei outlines strategic blueprint to drive NPP victory in Tema East
7 hours -
MTN to build 80 new sites across the five regions of the north as part of a $1.1bn investment
7 hours -
The Polygamist’s creator says women see themselves reflected in her Netflix hit
8 hours -
UEW Hospital suspends OPD services over GAUA strike
9 hours -
Muzic Mensah selected for Boomplay’s inaugural ‘NEXT WAVE’ Programme
9 hours