ernie4life:
A little bird told me there may be a primary Euro-bond auction within Q1, 2021

Thanks for the heads up. How we begin to position?

I learnt that the minimum amount to bid is $200,000 at the primary auction. How true is this?

If true, how can interested investors with lower than $200,000 take advantage?

How does the euro bond auction works? What would be required of a would-be investor?

Thanks in advance for your knowledge sharing.

oludy:


Thanks for the heads up. How we begin to position?

I learnt that the minimum amount to bid is $200,000 at the primary auction. How true is this?

If true, how can interested investors with lower than $200,000 take advantage?

How does the euro bond auction works? What would be required of a would-be investor?

Thanks in advance for your knowledge sharing.

Waiting for answers from earnie4life

ukay2:


Waiting for answers from earnie4life

The auction has come and gone but Ghana is cooking something

ernie4life:



The auction has come and gone but Ghana is cooking something

Hope it will be sweet o

Hello Sir, happy weekend.
Please is there the possibility that one losses capital for eurobond purchased at secondary market since it's all in unit purchased ? Going by how it's measured and its marked to market impact?

ernie4life:



The auction has come and gone but Ghana is cooking something

oludy:


Thanks for the heads up. How we begin to position?

I learnt that the minimum amount to bid is $200,000 at the primary auction. How true is this?

If true, how can interested investors with lower than $200,000 take advantage?

How does the euro bond auction works? What would be required of a would-be investor?

Thanks in advance for your knowledge sharing.

You can invest in dollar fund with banks and asset managers with as low as 1k. Stanbic has a dollar fund. I think ARM has too.

yinkaoke:
Hello Sir, happy weekend.
Please is there the possibility that one losses capital for eurobond purchased at secondary market since it's all in unit purchased ? Going by how it's measured and its marked to market impact?

Yes

Thanks alot and thank God l ask, please what of dollar mutual fund can one loose capital?[ Or which dollar funded investment is safe with capital invested?
quote author=ernie4life post=100902999]

Yes[/quote]

yinkaoke:
Thanks alot and thank God l ask, please what of dollar mutual fund can one loose capital?[ Or which dollar funded investment is safe with capital invested?
quote author=ernie4life post=100902999]

Yes

Before you invest in Eurobonds or Dollar fund, its important you understand how it is managed.

Eurobonds
Let us say you buy NGERIA 7.696% Feb 23rd,2038 at a unit price of $103.75 with $100,000.00, you will get about $96,000 face value (because you are buying at premium). Effectively you will be paid 7.696% Per annum of $96,000 every 6 months till Feb 23rd,2038 when you will get back your face value of $96,000.

Let’s assume that after 5 years you have need to sale off the bonds to take care of an urgent need and you decide sale the bonds, if the current market price for a unit has appreciated to $105.95, you will make more from the sales than you bought it, but if the price declines to $102.65 then you will make less than you bought it but remember you have been earning coupons since you bought it, which will probably still make the investment profitable when you view it from a point of total return on the investment.

Dollar funds

This works in similar way because the funds are still invested in Eurobonds, if at the point you are redeeming the unit price has appreciated then your capital would have appreciated, same goes to when the unit price has depreciated.

The trick is to buy when price drops and exit when the price has appreciated. Regardless of the movement in price we classify it as unrealised loss or profit up until you sale the bond or redeem the dollar fund.

Insightful thanks alot
However, when is then the right time Now? Yield are going up though slow and which will you advice euro or mutual. Don't just want to leave fund idle at same time don't want to loose capital

yinkaoke:
Insightful thanks alot
However, when is then the right time Now? Yield are going up though slow and which will you advice euro or mutual. Don't just want to leave fund idle at same time don't want to loose capital

Mutual fund

ernie4life:


Mutual fund

Good afternoon Oga Ernie4life. I will be very grateful if you or other gurus in the house like emmasoft can assist. Just wondering if the scenario you illustrated above relates exactly as well to the Dollar Stanbic ibtc Fund account. I have been uncomfortable anytime I log into my Stanbic ibtc Dollar fund account and I see the unit price. I was not aware or considered the unit price when I subscribed to the fund. My expectation is that I will be able to withdraw from the account based on the actual amount I want to withdraw in dollars as oppose to making a withdrawal that the amount I get in dollars will depend on the unit price. Are you saying the unit price of the fund at the time I want to fully liquidate my investment will affect the total amount I get in dollars. The stanbic staff I approached over a year ago was unable to answer my query relating to the unit price. Are you saying some of the profits that have accured in the account can be diminished due to fluctuation in the unit price. Many thanks.

dejiotus:


Good afternoon Oga Ernie4life. I will be very grateful if you or other gurus in the house like emmasoft can assist. Just wondering if the scenario you illustrated above relates exactly as well to the Dollar Stanbic ibtc Fund account. I have been uncomfortable anytime I log into my Stanbic ibtc Dollar fund account and I see the unit price. I was not aware or considered the unit price when I subscribed to the fund. My expectation is that I will be able to withdraw from the account based on the actual amount I want to withdraw in dollars as oppose to making a withdrawal that the amount I get in dollars will depend on the unit price. Are you saying the unit price of the fund at the time I want to fully liquidate my investment will affect the total amount I get in dollars. The stanbic staff I approached over a year ago was unable to answer my query relating to the unit price. Are you saying some of the profits that have accured in the account can be diminished due to fluctuation in the unit price. Many thanks.

Yes that is exactly what am saying

If you said you bought a year ago I assume you bought at the peak of the covid - 19 pandemic when bonds prices where very low and that was a good time to invest in either eurobonds or dollar funds, we saw prices soars to levels never seen before, but by January this year it started to drop drastically

[quote author=ernie4life post=101090883]

Yes that is exactly what am saying [/aquote]
Many thanks for the clarification

Ecobank Transnational Incorporated (ETI) Plc has announced plans to raise US$300 million from the International Debt Capital Markets (IDCM), through the issuance of tier 2 qualifying sustainability notes.

Get ready for another Eurobonds issue

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ernie4life:



Before you invest in Eurobonds or Dollar fund, its important you understand how it is managed.

Eurobonds
Let us say you buy NGERIA 7.696% Feb 23rd,2038 at a unit price of $103.75 with $100,000.00, you will get about $96,000 face value (because you are buying at premium). Effectively you will be paid 7.696% Per annum of $96,000 every 6 months till Feb 23rd,2038 when you will get back your face value of $96,000.

Let’s assume that after 5 years you have need to sale off the bonds to take care of an urgent need and you decide sale the bonds, if the current market price for a unit has appreciated to $105.95, you will make more from the sales than you bought it, but if the price declines to $102.65 then you will make less than you bought it but remember you have been earning coupons since you bought it, which will probably still make the investment profitable when you view it from a point of total return on the investment.

Dollar funds

This works in similar way because the funds are still invested in Eurobonds, if at the point you are redeeming the unit price has appreciated then your capital would have appreciated, same goes to when the unit price has depreciated.

The trick is to buy when price drops and exit when the price has appreciated. Regardless of the movement in price we classify it as unrealised loss or profit up until you sale the bond or redeem the dollar fund.

I want to ask..once an investment at a lower limit of 1000 usd and an additional 500usd is made at inception, is the investment frozen over the maturity time period or one can still add more monies to the investment?

Also what are the next opportunities for investing in Eurobonds and with which firms?

Thank you.

ernie4life:
Ecobank Transnational Incorporated (ETI) Plc has announced plans to raise US$300 million from the International Debt Capital Markets (IDCM), through the issuance of tier 2 qualifying sustainability notes.

Get ready for another Eurobonds issue

when?

DaBogu:
when?

It's past tense

Good afternoon my big Oga Ernie4life.
Many thanks for your valued advice regarding the Stanbic Dollar Fund account. I am particularly appreciative of your effort with regards to how the fund unit price affects the value of the investment.

Should I be worried that I have not noticed any accured interest added to my dollar fund account. The only gain I notice in my account is from the increased unit price. No quarterly or yearly interest, or coupon as in bond. Many thanks.

ernie4life:
If you said you bought a year ago I assume you bought at the peak of the covid - 19 pandemic when bonds prices where very low and that was a good time to invest in either eurobonds or dollar funds, we saw prices soars to levels never seen before, but by January this year it started to drop drastically

dejiotus:
Good afternoon my big Oga Ernie4life.
Many thanks for your valued advice regarding the Stanbic Dollar Fund account. I am particularly appreciative of your effort with regards to how the fund unit price affects the value of the investment.

Should I be worried that I have not noticed any accured interest added to my dollar fund account. The only gain I notice in my account is from the increased unit price. No quarterly or yearly interest, or coupon as in bond. Many thanks.

That's odd, to the best of my knowledge most dollar funds pay dividend twice a year, are you saying they have not paid you anything (mind you most clients opt for reinvestment of dividend).

Many thanks for your response. Lack of any dividend payment (at least as per my account statement) is exactly what I am concerned about. The only payments on my account statement were the four deposits I paid into the dollar fund. From my calculation, the increment or gains in my investment with the fund appears to be due mainly to the difference between my entry unit price of about 1.17 on average to current unit price of 1.28

ernie4life:



That's odd, to the best of my knowledge most dollar funds pay dividend twice a year, are you saying they have not paid you anything (mind you most clients opt for reinvestment of dividend).

Stanbic dollar fund pays out the dividends once a year. IIRC, I think it's around December yearly

Many thanks for the information. There is no indication from my statement to suggest payment of dividend at anytime since I subscribed to Stanbic Dollar fund in 2019. I will contact the customer service desk to find out what is going on.

ImperialCovfefe:
Stanbic dollar fund pays out the dividends once a year. IIRC, I think it's around December yearly

ImperialCovfefe:
Stanbic dollar fund pays out the dividends once a year. IIRC, I think it's around December yearly

Send your WhatsApp number to me in a dead thread

Hello investors,

am just here to inform us that yield has gone up, if you are considering investing in Eurobonds, now is the right time, most bonds are at a discount right now.

Any suggestions as to which investment company to use?

ernie4life:
Hello investors,

am just here to inform us that yield has gone up, if you are considering investing in Eurobonds, now is the right time, most bonds are at a discount right now.

sirrotex:
Any suggestions as to which investment company to use?

Use any investment company registered with sec but you can DM me for my personal recommendation

ernie4life:


Use any investment company registered with sec but you can DM me for my personal recommendation

Hello
Please I also sent you mail in respect of the recommendation for the eurobond investment for which coy.

Hi guys please are funds are doing well now, I just realised stanbic has been at 5% since last year

cc150615:
Hi guys please are funds are doing well now, I just realised stanbic has been at 5% since last year

You mean dollar funds?