Sovereign, supranational, and agency bonds (SSAs) are bonds issued by institutions like the World Bank. The SSA market is made up of a group of bond issuers whose activities support social initiatives. They allow investors access to government and government-related debt, which will typically have higher yields than corporate bonds.
Issuers include Export Development Canada, European Investment Bank, and the African Development Bank, among several others.
They can be less liquid than regular government bonds and are issued in two to 10-year maturities.
The nature of the institutions that issue SSAs means these bonds tend to have a built-in social component, and have traditionally been at the forefront of ESG developments.
Governments, central banks and regular banks often buy SSA bonds, but they can also be purchased by retail investors. They can also be a useful tool for investors looking to speculate in other currencies in foreign markets, since they are liquid instruments backed by member institutions.
