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Nairaland Forum / Nairaland / General / Investment / What Bonds Are & How To Invest In Nigerian Bonds (33221 Views)
Higher Liquidity To Spur Demand For Nigerian Bonds Next Week / How To Invest In Federal Government Bonds / Nigerian Bonds (money Machine) (2) (3) (4)
What Bonds Are & How To Invest In Nigerian Bonds by Seun(m): 1:11pm On Sep 26, 2011 |
Check out this article on how Nigerians can invest in bonds: What are bonds? Bonds are simply a term for loans that you give to the Federal Government, State Government, Companies etc. Full post: http://ugodre..com/2011/09/investing-in-nigerian-bonds-101.html Do you have anything to add about bond investing in Nigeria? Let's share and learn from each other. 12 Likes 1 Share |
Re: What Bonds Are & How To Invest In Nigerian Bonds by MrCork17: 2:44pm On Sep 26, 2011 |
Ask James Bond! |
Re: What Bonds Are & How To Invest In Nigerian Bonds by chakula: 2:46pm On Sep 26, 2011 |
Currently I am not working with NNPC and Co only when I got a job there Seun i should have much to say on this bond of a thing, however my monthly pay check is due for taking care of myself and those around, for saving my neck is yet to grow. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by edynasty: 2:55pm On Sep 26, 2011 |
Mr, Cork: RTFLMAO you are a condemned clown oh condemned clown |
Re: What Bonds Are & How To Invest In Nigerian Bonds by morpheus24: 3:01pm On Sep 26, 2011 |
Bonds are simply long term assests/financing that provide stable yields over a long period of time. They are usually issued by government bodies or private enterprises with good rates of payback. Bonds ars usually more beneficial if large sums are invested as theyiedls prove significant int he long run which is why pension funds and other entiteis that are able to invest large amounts of money usually use these vehicles to obtain stable yields. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by duduspace(m): 3:08pm On Sep 26, 2011 |
Hmmmm, interesting. I've played the stock market for a while now. Maybe its time to move to bonds once this bearish run in the market is over. Those bonds losing value and gaining yield sound like a very good prospect , but nobody should touch any bonds that have ties to Greece o. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by duduspace(m): 3:10pm On Sep 26, 2011 |
e.dynasty: Amazing you find what he said funny, both of you should be tied up in bonds. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by SirX: 3:12pm On Sep 26, 2011 |
In a nutshell. Bond is just like a loan. A country,local government,etc issues bonds to raise funds. Depending on the conditions of the loan, the borrower is supposed to pay an interest for a fixed date to the creditor(holder of the debt security). A country's financial health determine how valuable her bond is. If the borrower fails to meet up with the obligation of the loan contract as in repayment with the specified interest, investors looses confidence in the ability of the country to pay its debt and therefore the value of the bond depreciates and thus affects the economy in general. I suggest you get more concrete and detailed information by researching more from academic sources. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by Nobody: 3:24pm On Sep 26, 2011 |
Mr, Cork: I wonder what u will look like, craze |
Re: What Bonds Are & How To Invest In Nigerian Bonds by porka: 3:32pm On Sep 26, 2011 |
And when government fails to pay (I have in mind Greece, Iceland, Spain, Italy and USA?), eg, governors TAKING BONDS MONEY ABROAD to pay their 'children's school fees', how would I get my money back after ten years? And when governors insist they don't 'HAVE THE CAPACITY TO PAY', where will I run to? |
Re: What Bonds Are & How To Invest In Nigerian Bonds by duduspace(m): 3:39pm On Sep 26, 2011 |
porka: Bros, that is the risk you undertake and why you also gain if everything goes according to plan. Nothing ventured, nothing gained. You can hide your money under your matress instead or dig a hole and hide it underground since the banks can also fail if you put your money there. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by Nobody: 3:43pm On Sep 26, 2011 |
So say Nigeria breaks up, who gets to refund my money? |
Re: What Bonds Are & How To Invest In Nigerian Bonds by SirX: 3:47pm On Sep 26, 2011 |
To add to my earlier post. I don't think Nigerians bond would stand a chance. Even if investors were to invest in Nigerian bonds, they would demand much higher interest rates. Because, the Nigerian economy is not fundamentally strong, the currency is not stable, shadowy account reports, budget deficits, rampant corruption, instability, lack of security, flawed judicial system influenced by bribes and cronyism and many other factors that will make a prospective investor think twice. Countries with the opposite of the factors I mentioned above would attract investors even at low interest rate. 1 Like |
Re: What Bonds Are & How To Invest In Nigerian Bonds by violent(m): 3:53pm On Sep 26, 2011 |
porka: Nigeria is not Greece, Italy, or Spain! those countries are within the Eurozone and cannot print money to pay back their debts as inflation within the Eurozone is controlled by the ECB. . .those countries would have to generate revenue and stimulate growth to pay back their creditors The USA has not defaulted and the US treasuries continues to be a risk free proxy even after the downgrade!. . . .the US can always print money to pay back its debts! Nigeria can always pay back it's bondholders, the only risk being that if the country gets so broke, and it results to money printing, inflation will likely wipe out the yield on your bond and at the end of the day, you are left with real losses on your investments. This risk of course is priced into the bonds themselves and will determine how much you ask for in terms of rates. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by porka: 4:19pm On Sep 26, 2011 |
@violent, Thank you sir/ma, what about the second question? When they 'dont have the capacity to pay' a la minimum wage, |
Re: What Bonds Are & How To Invest In Nigerian Bonds by porka: 4:21pm On Sep 26, 2011 |
@violent, Sir/Ma, do Nigerian companies and state governments print money too? |
Re: What Bonds Are & How To Invest In Nigerian Bonds by omaojo1: 4:31pm On Sep 26, 2011 |
One of the advantages of investing in bond is that u are sure of getting your coupon when it is due. The problem with the Nigerian bond market is that it is not for small investors. You'll need to have up to 100 million naira as a minimum for a start, even if you have this money, the available bonds aint enough for the big boys so there are no crumbs falling any where for you to feed on. Plus, once you invest in govt bonds, there is no story as default except the centre stops sharing revenue to the states. @poster, it is a great topic and i can't wait to read the views of finance seniors in the house. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by willis2k9(m): 4:40pm On Sep 26, 2011 |
Am intrested,hw wil i locate ur office 4 one on one talk.reply my email adress.willis2k9@yahoo.com |
Re: What Bonds Are & How To Invest In Nigerian Bonds by omaojo1: 4:44pm On Sep 26, 2011 |
willis2k9:Who are u referring to. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by violent(m): 4:49pm On Sep 26, 2011 |
porka: porka: The federal government will always pay you your money back, they can do so by printing more money or raising taxes, for this reason, you get a small amount of interest on your money, although normally higher than the savings rate. Corporate organizations cannot guarantee to always pay you back your investments in full, for this risk, you get a higher amount of interest on your money, much higher than what the feds is offering. If companies find themselves in a situation where they cannot pay pack their debt holders, they can always approach the stock market to sell stakes in the companies. But usually, once a company finds itself in a situation where it cannot afford to pay creditors, no one will be willing to by its stakes, and existing stakeholders would rather much be selling, the comapany loses share value and in many cases declares bankruptcy!. . .when this happens, it's asset will be put on sale at market value and the cash raised will be used to settle debt holders. State governments always have the state's resources as collateral! |
Re: What Bonds Are & How To Invest In Nigerian Bonds by femi2008: 4:55pm On Sep 26, 2011 |
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Re: What Bonds Are & How To Invest In Nigerian Bonds by norrisman: 5:13pm On Sep 26, 2011 |
Bonds are as safe as houses (thats if houses are still a good investment going by all the sub-prime wahala). With government bonds you are always onto a winner because the government will always pay up. It is only in rare situations like a never ending war like in Somalia where there is no central government that your bonds may not be repaid. Even the PIIGS countries including Greece must pay up bonds when they mature. The default you hear about in Greece is more complicated than ordinary bonds. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by Donbrig: 6:30pm On Sep 26, 2011 |
@Seun, thanks for this thread. You all should know that Nigerian Bonds are one of the most attractive and safest in the world for local and foreign investors. One could start by buying treasury bills (3,6,9 or 12months) if you want to invest. After building your capital base, you could go for a longer term investment by buying bonds. One majour factor that will never make a poor man get rich is FEAR. Some people have never invested in Nigerian bonds or treasury bills, they are already giving up to fear by asking, what if Nigeria breaks-up? what if the govt fails to pay up? what if that, what if this happens? We should not allow the bad things happening in Nigeria to blind us from seeing the good opportunities. 1 Like |
Re: What Bonds Are & How To Invest In Nigerian Bonds by Chinedu1991(m): 6:41pm On Sep 26, 2011 |
thx boss, i really do appericiate your post, |
Re: What Bonds Are & How To Invest In Nigerian Bonds by Donbrig: 6:49pm On Sep 26, 2011 |
@Seun, thanks for this thread. You all should know that Nigerian Bonds are one of the most attractive and safest in the world for local and foreign investors. One could start by buying treasury bills (3,6,9 or 12months) if you want to invest. After building your capital base, you could go for a longer term investment by buying bonds. One majour factor that will never make a poor man get rich is FEAR. Some people have never invested in Nigerian bonds or treasury bills, they are already giving up to fear by asking, what if Nigeria breaks-up? what if the govt fails to pay up? what if that, what if this happens? We should not allow the bad things happening in Nigeria to blind us from seeing the good opportunities. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by ojubi(m): 7:00pm On Sep 26, 2011 |
There are 5 level of invetors. Viz Level 1 The zero financial inteligence investor. They ve nothing to invest and spend more than they earn. LEVEL 2 SAVERS RE LOSERS. They put their hard end money in a savings account beliving that the bank will pay them interest. The ponzi scheme banks take your money give out to your brother on loan and charge him 25 percent, and give u 2 percent interest and steal back the interes in the name of service chages, ATM chagess etc. LEVEL 3 THE I AM TOO BUSY TO INVEST LEVEL. This fellow often a well train professional is too busy to take sometime to learn about investing. Hence when he sees initial public offers, bunds, stocks etc he ignorantly jumbs into it and sink his hard earn money to become an ordnary share holder. Pity, pity my brother. Example DOctors, nurses etc etc he ignorantly jumbs into it and sink his hard earn money to become an ordnary share holder. Pity, pity my brother. Example DOctors, nurses etc |
Re: What Bonds Are & How To Invest In Nigerian Bonds by Ayowumie(m): 7:29pm On Sep 26, 2011 |
Donbrig:Please, i am interested in investing in the treasury bills, how do i go about it? Please, if you have any information regarding this, you could kindly send me a mail mailay2day@yahoo.com |
Re: What Bonds Are & How To Invest In Nigerian Bonds by ojubi(m): 7:30pm On Sep 26, 2011 |
LEVEL 4 THE I AM A PROFESSIONAL LEVEL. Self employed example dentist, optician, real estate developer, plumber, etc. They usually become financially comfortable not not stupendiously rich. LEVEL 5 THE CAPITALIST. This are the richest peopple on earth. They practice monopoly. They take your hard end money from thos usless BUNDS SEUN is asking u to buy, turn it into billions over nigth and pay u peanuts after 10 years. HELL, i will never give my hard earn money to any already made billioniare like RAMON DOkPESI etal, like when i bougth AIT shares or the ever unstable govt in the name of bunds, shares, mutual funds etc. There are all ellaborate PONZI SCHEMES. Aka legalised crime. I dont even keep cash in my savings account anymore. I use my hard earn money to buy cheap plots of real estate in the surburd of my town. One day development will get there, i will sell this land and i too will smile. Aka legalised crime. I dont even keep cash in my savings account anymore. I use my hard earn money to buy cheap plots of real estate in the surburd of my town. One day development will get there, i will sell this land and i too will smile. 2 Likes |
Re: What Bonds Are & How To Invest In Nigerian Bonds by ojubi(m): 7:43pm On Sep 26, 2011 |
Fellow naira landers pls learn the act of investing. It does not take much. If you do u will be the one looking for loans and not u beging to give out your money, for good debt make the rich richer. |
Re: What Bonds Are & How To Invest In Nigerian Bonds by wura2020: 10:02pm On Sep 26, 2011 |
@ojubi. While it is good to buy land and resell later is a good investment strategy, it also has its risks. What if you buy a fraudulent land? You can loose money from property investment too. My advise is that you should diversify your investments. Dont put all your eggs in one basket. A little of this and that will make better investment sense. I just bought #10m worth of FGN Bond maturing in 2016 with 11.49 yearly interest. Every 6 months I get a cheque of #574,500. Those interested in investing in FGN Bonds should contact Vetiva. 2 Likes |
Re: What Bonds Are & How To Invest In Nigerian Bonds by wura2020: 10:09pm On Sep 26, 2011 |
@omaojo1. You only require #100m minimum for State Government Bonds. For FGN Bonds, the minimum is #10,000 and multiples of #1000 therefore. 1 Like |
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