True. The heavy domestic borrow Ng does crowd out private sector Credit as the local banks are not incentivised to lend to businesses and just hold assets in government Treasuries. While there are securities exchanges that trade bonds, most of the bond trading is OTC again amongst the banks. There is room for a dedicated or more targeted bond exchange, this requires more awareness amongst participants especially retail to provide depth and liquidity which is still lacking. Our mission at Impala markets is to drive knowledge and information about these markets to attract more participants and in the process lead to better pricing and discovery.
Thank you for this wonderful piece. Do you the same data for Uganda and we compare and where we stand.
We shall prepare an updated one for Uganda as the year ends shortly but see the earlier one, https://blog.impala.market/p/uganda-sovereign-debt-market-overview
True. The heavy domestic borrow Ng does crowd out private sector Credit as the local banks are not incentivised to lend to businesses and just hold assets in government Treasuries. While there are securities exchanges that trade bonds, most of the bond trading is OTC again amongst the banks. There is room for a dedicated or more targeted bond exchange, this requires more awareness amongst participants especially retail to provide depth and liquidity which is still lacking. Our mission at Impala markets is to drive knowledge and information about these markets to attract more participants and in the process lead to better pricing and discovery.