SSNIT’s Fixed Income: potential impact on the Fixed-Income market and economy

SSNIT's shift towards fixed-income investments aims to ensure income stability and financial sustainability. This strategy is expected to increase bond demand, boosting prices while lowering yields, benefiting issuers like the government and corporations through reduced borrowing costs.

However, prolonged low yields may discourage retail investors and reduce market participation.

The increased demand could flatten the yield curve, signaling slower growth, and may require the Bank of Ghana to adjust monetary policy to maintain market stability.

Corporations could benefit from cheaper debt financing, but sustained low yields might limit savings and available capital over time.

SSNIT faces diversification challenges as reliance on fixed-income assets exposes it to interest rate and inflation risks.

Adopting global investment strategies, as seen with Japan’s GPIF, could mitigate risks and enhance returns while supporting Ghana’s economic development.