- What Are Bonds?
Bonds are investments where you lend money to a government or company for a set time, earning interest based on the agreement. - How Bonds Work
Buying a bond means loaning money to an issuer (government or company) in exchange for periodic interest payments and principal repayment. - The Bond Market in Ghana
Ghana’s bond market is managed by the Ghana Fixed Income Market (GFIM), supported by stakeholders like the Bank of Ghana and Ghana Stock Exchange. - Where to Buy Bonds
Bonds are bought through banks or Licensed Dealing Members (LDMs), intermediaries who trade securities for investors for a fee or commission. - Opening a Depository Account
A depository account is created for bondholders to manage transactions. Periodic statements from the Central Securities Depository show account holdings. - Factors Affecting Bond Prices
Bond prices depend on economic conditions, market trends, interest rates, and the bond’s maturity period. Prices may fluctuate over time. - Impact of Bond Maturity
Bonds with longer maturity periods face higher price volatility due to changing economic conditions and interest rate risks. - Understanding Bond Risks
Bonds carry risks. Issuers with poor credit ratings may default, failing to repay the loan or the promised interest. - Diversify Your Investments
Avoid putting all savings into bonds. Diversification helps spread risk and minimizes the impact of potential bond issuer defaults. - Receiving Bond Statements
Bondholders receive regular statements from the Central Securities Depository, showing current holdings, transactions, and the bond’s value over time.
Read more at: 5 THINGS YOU NEED TO KNOW BEFORE YOU START INVESTING IN BONDS
