Tunisia's Secondary Debt Market Sees Positive Dynamics
Since the beginning of the year, Tunisia's secondary debt market has been experiencing a positive trend. The transaction volume has reached 44,821 MTND by the end of last week, representing a 56.8% year-over-year increase.
This trend reflects a primary market where the pace of issuances continues to grow, with the sovereign being the main protagonist. Consequently, with a thriving collective savings industry and strong demand for life insurance products, the acquisition of debt securities is increasing necessarily. Open-ended investment companies (OPCVM) have accounted for 96.3% of the transaction volume.
Furthermore, institutional investors are convinced that interest rates will decrease this year. To secure returns, it is essential to invest in good placements now before current papers become more expensive. Treasury bonds and sovereign bonds have contributed 78.3% of the transacted capital (35,129 MTND). Given the frequency of Treasury issuances, their securities will be the first to reflect this decrease, making them more frequently traded. Additionally, private bonds are another factor to consider: most recent issuances have been made without a public appeal to savings, depriving OPCVM of the opportunity to purchase them.
This market could become even more attractive if individual investors, who drive the stock compartment, become more involved. It is the role of stock exchange intermediaries who have succeeded in various tranches of the national loan from companies. Even the granting of a tax advantage by the 2024 finance law has not encouraged investments in debt securities. Those seeking long-term, highly profitable, and risk-free savings should take advantage of these last months of high interest rates.
