The bond market could recover as the macro economy improves gradually while the government continues to service the new and old papers, a new Databank Research has revealed.
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”, the research finding indicated.
It further noted that 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.