ernie4life:


I have replied, Check your email

awesomeJ:

Bonds are kinda sold in units with each unit having a face value.
so if you buy a 15% APR 2023 FGN bond with 10m at its original price, you'd be having 100,000 units of the bond, and since the coupon is 15%, your annual interest would be 1.5m

Now when you buy at the secondary market, you often don't buy at the original unit price. You may get to buy at say N90 per unit, which implies that you'd only be paying 9m to get thesame 100,000 units.

But at the end of the year, both you who bought at 9m and the other person that bought at 10m, you'd each get 1.5m as interest, because you hold the same number of units. But while his own yield is 15%(1.5m on 10m input), yours is 16.67%(1.5m on 9m input)

So coupon rate indicates the rate at which interest is paid on a bond based on its face value, while yield indicates the actual rate of returns to an investor.

The coupon rate is always indicated in the name of most bonds, and it doesn't change throughout the lifetime of the bond.

Only changes in purchase prices bring about changes in yields to bond investors.

Bonds bought at prices below their face values have higher yields, and vice versa.

Kindly ask for any further clarification if....

shogbenga:
thanks AwesomejErnie4life and other gurus for the insights. Meanwhile I need some clarification. Does it mean that the Yield should serve as reference point in determining which coupon gives the highest return. Meaning that one should go for coupon with the highest yield viz a viz the tenor. Thanks

ernie4life:


Go for the one with the highest offer yield and not just coupon

DMerciful:
Hi All,

I noticed I did not receive my bond coupon that normally comes July. Anybody experience something similar?
Can anybody help with a solution?
Thanks

olujaidi:


Perhaps it came on the last working day in June? Confirm from your statement

DMerciful:
Thanks very much. Saw it now.

olujaidi:


How did you miss that? You don't receive alerts??

Egie4real:
I will be interested in such (visionscape) after 2019 elections because they are highly politically exposed.

awesomeJ:

You can always buy bonds on any given day at the secondary market through your banks, brokers or investment houses.
The issue we're trying to walk around is the minimum investment threshold.

So far we have:
FSDH 50m
GTI securities 100m
Afrinvest 20m
FGN BOND Primary market 50m
FirstBank Eurobonds $100k
Most other Eurobonds $200k

shogbenga:
Awesomej, ernie4life and other gurus....I asked this question in another thread but since this deals with bond, I need your guidance......I am selling a property and I expect about close to 20m from the transaction. Selling because of tenant issue, maintenance etc.
Kindly advise on which to invest the money on between TB and Bond. I am ready to go long term as far as 20 years considering the proceed is from a property. Which one will give higher returns. Thanks

decargne:
Good day, please my friend ask me to help him ask the following questions, he doesn't have an account here and doesn't want to register.
1. what is the minimum amount needed to put in for a five year FG bonds
2. How would one go about it, is registration with a stockbroker compulsory particularly if one has a mutual fund account with a bank like standbic?

please we have read all the pages on bond investors hub thread and those on the DMO page but the answers to these questions seem not to be clear. please help. thanks

ernie4life:


For now we could say bonds will give you better returns but 20 years is a very long time and anything can happen.
A few years ago treasury bills was giving about 22%, so how sure are we that in the next 20 years that such a thing won't happen.

If the funds was more your best strategy would be "don't put all your eggs in one basket" 75% of your portfolio in bonds and the other 25% in money market which includes treasury bills and commercial papers.

DaBogu:
The bolded how can one go about it

DaBogu:
I have answered your question in the other thread

decargne:


thanks alot. I was inquiring about fg bonds not saving bonds. so if I get you correctly, an individual with about 5m would not meet the minimum amount for fg bonds right?

DaBogu:
20m

shogbenga:

Go to stanbic, with 5m, you will get fgn bond from the secondary market

shogbenga:

Go to stanbic, with 5m, you will get fgn bond from the secondary market

shogbenga:

Go to stanbic, with 5m, you will get fgn bond from the secondary market

ImperialCovfefe:


It just means you would pay a little bit more than the quoted price.

You can seek clarification from your stockbroker and/or read here: https://www.investopedia.com/terms/d/dirtyprice.asp

decargne:
Good day, please my friend ask me to help him ask the following questions, he doesn't have an account here and doesn't want to register.
1. what is the minimum amount needed to put in for a five year FG bonds
2. How would one go about it, is registration with a stockbroker compulsory particularly if one has a mutual fund account with a bank like standbic?

please we have read all the pages on bond investors hub thread and those on the DMO page but the answers to these questions seem not to be clear. please help. thanks

shogbenga:
Awesomej, ernie4life and other gurus....I asked this question in another thread but since this deals with bond, I need your guidance......I am selling a property and I expect about close to 20m from the transaction. Selling because of tenant issue, maintenance etc.
Kindly advise on which to invest the money on between TB and Bond. I am ready to go long term as far as 20 years considering the proceed is from a property. Which one will give higher returns. Thanks

shogbenga:

Go to stanbic, with 5m, you will get fgn bond from the secondary market

Yomit2:
Hi guys. Please which eurobond is currently available? Is it possible to buy eurobond from my gtb account as I am currently not in Nigeria?