ernie4life:


Heard some banks helps clients buy but the still pass through a broker since its a bond.
I recommend a broker but you can use any that you prefer.

Thanks, was looking for an option that's time friendly cause of my place of work felt if a bank could do it just like TBills would have been a lot better.

KpagoGIN:

Thanks, was looking for an option that's time friendly cause of my place of work felt if a bank could do it just like TBills would have been a lot better.

A good broker would offer similarly quality of service as your bank, only challenge maybe for you to transfer to the funds to the custodian which may require you going to the bank to fill forms for the transfer

Dear Sir,

I would appreciate if you reach me at triol80t@gmail.com as regards your firm on Eurobond. Regards

Thanks so much for the thread. please what are the procedures? do I have to have a dorm account, Can one buy through stanbic bank ?

MssRose:
Thanks so much for the thread. please what are the procedures? do I have to have a dorm account, Can one buy through stanbic bank ?

You definitely need a dorm account.
You need to ask them to confirm

ernie4life:

You definitely need a dorm account. You need to ask them to confirm

Thanks

Diamond bank 21 may 2019 Eurobond coupon payment is due today, and they have paid,
last i checked it was trading at a discount which is cool

Diamond Bank eurobond is currently at $96 a unit with coupon of 8.75% for less than 6months, thats a good opportunity.

Many people are scared of diamond bank because of the recent propagandas of a planned buy out which is not yet confirmed,

in my opinion I don't think its true,
even if there is a buy out, the buyer also buys the firms liability meaning, the buyer will still pay the bonds and coupons upon maturity.


Note: the offer rate is indicative, meaning it can change at any time

ernie4life:
Diamond Bank eurobond is currently at $96 a unit with coupon of 8.75% for less than 6months, thats a good opportunity.

Many people are scared of diamond bank because of the recent propagandas of a planned buy out which is not yet confirmed,

in my opinion I don't think its true,
even if there is a buy out, the buyer also buys the firms liability meaning, the buyer will still pay the bonds and coupons upon maturity.


Note: the offer rate is indicative, meaning it can change at any time

Hey Ernie! Longest time my friend.

Have you looked at their books?

GonFreecss1:



Hey Ernie! Longest time my friend.

Have you looked at their books?

Hi GonFreecss1,

yes i have, but am confident that they wont default their payment.
the recently became a national bank therefore there reserve ratio reduced meaning more funds at there disposal.

ernie4life:


Hi GonFreecss1,

yes i have, but am confident that they wont default their payment.
the recently became a national bank therefore there reserve ratio reduced meaning more funds at there disposal.

Nice, will be checking them out.

Is it still safe to buy Diamond bank Eurobond considering their recent merger?

ernie4life:


some Eurobonds trading

Bank coupon Maturity date
Diamond bank 8.75% 21/05/2019
Republic of Nigeria 7.875% 16/02/2032
Fidelity bank 10.50% 16/10/2022
First bank 8.0% 23/07/2021



So, to buy Eurobonds you need to talk to your broker who must be regulated to give you what is available and make recommendations.
With most firms the whole process can be done without visiting the physical office especially for those not in Nigeria, coupons are paid twice a year till maturity, there is always custodian fee usually a percentage of the value of the Eurobond and it’s very small.

Please always make your findings, my write-ups are for educational purposes and should not constitute a basis to make investment decisions, always consult your financial adviser before you make any investment decision.

234ng44uk:
Is it still safe to buy Diamond bank Eurobond considering their recent merger?

yeah, Bonds are debt instruments,
when there is a merger the new company takes over the bond.

ernie4life:


yeah, Bonds are debt instruments,
when there is a merger the new company takes over the bond.

Thanks. Kindly recommend broker who can make that purchase. Banks I've spoken with said they don't do Eurobond. Same with some dealers who were advising me to invest in their mutual fund instead.

234ng44uk:


Thanks. Kindly recommend broker who can make that purchase. Banks I've spoken with said they don't do Eurobond. Same with some dealers who were advising me to invest in their mutual fund instead.

Investment House, Merchant banks and Asset Mangers like StanbicIBTC Asset Management, Investment One, FBNquest and the likes are the one you should contact.

I see lots of percentages floating around as regards to bonds. Not so straightforward as profit/loss as I would prefer. Could someone please explain what the difference is between "coupon (%)" and "offer yield (%)"? Thanks again for your contributions.

234ng44uk:
I see lots of percentages floating around as regards to bonds. Not so straightforward as profit/loss as I would prefer. Could someone please explain what the difference is between "coupon (%)" and "offer yield (%)"? Thanks again for your contributions.

Coupon is the stated fixed interest of the bond, could be 7%, 10% 9.4% etc

now bonds(euro-bonds inclusive) in the secondary market are settled on par value that's $100 for a unit,
but based some market factors(that's a topic for another day) some could be trading on a
premium that's when it cost you more that $100 to buy a unit or
discount that's when it cost you less than $100 to buy a unit
regardless of if you purchased at a premium or discount upon maturity, you will be settled at per Value price of $100.

Offer yield takes into account the coupon and the discount/premium return.

let me give you an example.

Ernie4life Eurobond is trading at a Discount of $95 dollars and pays a coupon of 10%.
So; to buy a 10,000 units you paid $95,000 instead of $100,000.
lets say you hold the Eurobonds for just 1 Year.
at the end of the year you get a coupon of 10% of $100,000 which is $10,000
and still upon maturity they pay you $100,000 instead of $95,000 which was your cost.
In total you made $15,000 from this euro bond which is the offer yield, which is 15% of the bond value of $100,000

i hope i made sense

ernie4life:


Coupon is the stated fixed interest of the bond, could be 7%, 10% 9.4% etc

now bonds(euro-bonds inclusive) in the secondary market are settled on par value that's $100 for a unit,
but based some market factors(that's a topic for another day) some could be trading on a
premium that's when it cost you more that $100 to buy a unit or
discount that's when it cost you less than $100 to buy a unit
regardless of if you purchased at a premium or discount upon maturity, you will be settled at per Value price of $100.

Offer yield takes into account the coupon and the discount/premium return.

let me give you an example.

Ernie4life Eurobond is trading at a Discount of $95 dollars and pays a coupon of 10%.
So; to buy a 1000 units you paid $95,000 instead of $100,000.
lets say you hold the Eurobonds for just 1 Year.
at the end of the year you get a coupon of 10% of $100,000 which is $10,000
and still upon maturity they pay you $100,000 instead of $95,000 which was your cost.
In total you made $15,000 from this euro bond which is the offer yield, which is 15% of the bond value of $100,000

i hope i made sense

can I invest in euro bonds with like 200k?

bravesoul247:
can I invest in euro bonds with like 200k?

200k naira or dollars?

ernie4life:


200k naira or dollars?

naira

bravesoul247:
naira

Not enough

ernie4life:


Not enough

how much is enough?

bravesoul247:
how much is enough?

1,000 USD. Then 500 USD subsequently.

GonFreecss1:


1,000 USD. Then 500 USD subsequently.

For eurobonds or dollar mutual funds?

ernie4life:



For eurobonds or dollar mutual funds?

I think both. Some of this companies call theirs with different names.

Ok. Please let me ask a question because I like to be 100% sure when it comes to money. If I was investing in T-Bills say at 15% N37M (approx $100,000 for arguement sake), I'll be getting effectively the same returns but in dollars if I took $100,000 to the eurobond market and did the example you gave?

ernie4life:




let me give you an example.

Ernie4life Eurobond is trading at a Discount of $95 dollars and pays a coupon of 10%.
So; to buy a 1000 units you paid $95,000 instead of $100,000.
lets say you hold the Eurobonds for just 1 Year.
at the end of the year you get a coupon of 10% of $100,000 which is $10,000
and still upon maturity they pay you $100,000 instead of $95,000 which was your cost.
In total you made $15,000 from this euro bond which is the offer yield, which is 15% of the bond value of $100,000

i hope i made sense

Quincykay:
Ok. Please let me ask a question because I like to be 100% sure when it comes to money. If I was investing in T-Bills say at 15% N37M (approx $100,000 for arguement sake), I'll be getting effectively the same returns but in dollars if I took $100,000 to the eurobond market and did the example you gave?

Yes but the returns in eurobonds are not the same with treasury bills,
lets say you invest $100k in eurobonds at an interest of 8.75%, you will get 8.75% of $100k

There are $3.85 Billion of Nigeria Corporate Eurobonds now.

Between now and July 2019 $1.8 Billion will either mature or be called.

These will naturally create scarcity of securities hence price hike and lower yields.

The affected bonds are:
• Access Bank Sub 21s - $400mn dollars to be called June
• Diamond Bank 19s - $200mn dollars maturing May
• ETI 21s - $250mn dollars to be called August
• FBNH 21s - $450mn dollars to be called as well in July
• Zenith 19s - $500mn dollars maturing April

Now is the time to buy.

ernie4life:
There are $3.85 Billion of Nigeria Corporate Eurobonds now.

Between now and July 2019 $1.8 Billion will either mature or be called.

These will naturally create scarcity of securities hence price hike and lower yields.

The affected bonds are:
• Access Bank Sub 21s - $400mn dollars to be called June
• Diamond Bank 19s - $200mn dollars maturing May
• ETI 21s - $250mn dollars to be called August
• FBNH 21s - $450mn dollars to be called as well in July
• Zenith 19s - $500mn dollars maturing April

Now is the time to buy.

What is the minimum someone should have before buying bonds? What is the minimum term?

Ps, I think you are doing a very good job on the thread.

OvaSabi1:


What is the minimum someone should have before buying bonds? What is the minimum term?

Ps, I think you are doing a very good job on the thread.

its dependent on the firm you are dealing with, some $250k, $200k, $100k or $10k,
just inquire from the firm you are dealing with

Can you please confirm the yield on these bonds?

ernie4life:
There are $3.85 Billion of Nigeria Corporate Eurobonds now.

Between now and July 2019 $1.8 Billion will either mature or be called.

These will naturally create scarcity of securities hence price hike and lower yields.

The affected bonds are:
• Access Bank Sub 21s - $400mn dollars to be called June
• Diamond Bank 19s - $200mn dollars maturing May
• ETI 21s - $250mn dollars to be called August
• FBNH 21s - $450mn dollars to be called as well in July
• Zenith 19s - $500mn dollars maturing April

Now is the time to buy.

Just as anticipated,
prices of Eurobonds have increased leading to a drop in yields, almost all corporate bonds are trading at a premium right now
it will drop further once the anticipated eurobonds starts maturing or are called,
there is bound to be so much dollar liquidity soon.