The bond market could recover as the macroeconomy gradually improves while the government continues to manage new and old securities, a new study from Databank has found.
However, the recovery may remain far from pre-Domestic Debt Exchange Program (DDEP) levels as investors maintain strong interest in Treasuries.
“We expect new post-DDEP record highs as investors drive market activity with the Repo strategy,” the research findings indicate.
He further noted an expected rise in corporate issuance as yields move out of the 30% zone.
Companies are therefore expected to raise funds in the fixed income market as the regulator works to operationalize the commercial paper market for shorter-term securities.
“We believe that improving money market liquidity levels and return expectations will bode well for corporate issuance in 2024. We expect corporate insurance to present competitive opportunities to investors looking to diversify their investment portfolios from longer term GoG securities. [Government of Ghana] securities,” added Databank Research.
A business office report