Mmegi

BSE moves to open bond market to ordinary citizens

Alternative pathways: Monyatsi is seeking more room for retail investors PIC: MORERI SEJAKGOMO
Alternative pathways: Monyatsi is seeking more room for retail investors PIC: MORERI SEJAKGOMO

The Botswana Stock Exchange (BSE) has announced intentions to boost liquidity and activity through opening the bond market to retail traders.

The exchange says the current bond market is primarily accessible to institutional investors such as pension funds and large commercial entities.

Retail bonds are an ‘IOU’ in which an investor agrees to loan money to an individual, company, or government in exchange for a predetermined interest rate. Retail trade of bonds is more common in developed capital markets such as Wall Street which has some retail traders holding their pensions in popular stocks.

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