₦airaland Forum

emmanuelewumi:
Stanbic IBTC sends available bonds to me very early in the morning from Monday to Friday. This information will include the price, yield, maturity.

You will send a mail to them concerning what you want, before they debit your account they will give you a breakdown of the transaction, fees, clean price, dirty price, units and total cost, if you are okay with the breakdown you can approve the deal

yazga:
Which broker do you use?

PresidentBuhari:
Actual profit is the percentage of the Yield that's 10.9% at the time I bought. The value of the yield in % is actually what determines your profit and not the coupon rate of 16 percent for secondary market bonds.
Overall it a loss as the funds would've performed better under some other investment portfolio.

PresidentBuhari:
It was bought through bank. It's two payments a year i.e roughly N264k a year.
I don't have the contract note but information recorded at the time of purchase was;
YIELD - 10.93
CLEAN PRICE - 1102.6
DIRTY PRICE - 1156.4

Lazyyouth4u:
Whether you buy at premium, par or discount , just try to get the highest ‘yield’ possible (note I didn’t say ‘coupon’)

Yield = coupon divided by the amount you paid for the bond

Lazyyouth4u:
As per bolded, it’s not up to the investor at all. It all depends on what the current market pricing is. If current interest rates are high, then bonds with lower coupons will sell at a discount in order for a buyer to get yields where the current interest rates are.

If you divide your coupon by the amount you pay for it and compare to current interest rates, you will realize that you didn’t make any gain by buying a discounted bond...

emmanuelewumi:
You send a mail to the head office. She should first of all make enquiry at the bank

Adinije:
I have just Stanbic bank account

Adinije:
I have just Stanbic bank account

emmanuelewumi:
I use United Capital Asset Management and FSDH Asset Management.

I get better returns from United Capital fixed income.

I reinvest the dividends, I sell when I need funds.

Sold about N1.5 million of my United Capital fixed income fund yesterday morning and got paid today.

Unlike Money Market Fund where you will be paying within hours

emmanuelewumi:
No bad as another stream of income, make sure you send part the extra streams of income on errands to create more money

emmanuelewumi:
Fixed Income Fund.


Nothing bad in doing your reinvestment and diversification by yourself

ukay2:
Your not cheated at all

The bond is ok

Just target at discount prices next time to help you buy at discount price, like buying 1.5M bond for 1.4M...

...you get better the more you invest

Some investors may have bought at higher premium prices like 150 in the early days of their bond investments...

Keep learning as you invest....

emmanuelewumi:
When will it mature? What was the yield?


From my calculation you invested about N1 Million and you have been getting a coupon of 123k per annum.

You bought at a premium, you should be more concerned the yield.

You bought at N100.05 at maturity you will be paid N100.00

ukay2:
You bought at premium price ...above 100

There is Par price...100

There is discount price....below 100

You will be ok with the coupons of you stay till maturity or sell when the bond market becomes bullish

emmanuelewumi:
When will it mature? What was the yield?


From my calculation you invested about N1 Million are you have been getting a coupon of 123k per annum.

You bought at a premium, you should be more concerned the yield.

You bought at N100.05 at maturity you will be paid N100.00

emmanuelewumi:
Who is the Stockbroker that bought for you?

emmanuelewumi:
Yes


Inflation will affect interest rates


The interest earned so far by the bond will also affect the price, because the coupons are calculated daily.

Adinije:
Can one buy bond remotely, without going to the bank pls?

Stanbic

emmanuelewumi:
1 million and ten thousand Naira.

It is selling for 101

emmanuelewumi:
N1,010,000 will give you a coupon of 124k

emmanuelewumi:
FG bonds in the secondary market, talk to your bank or Stockbroker.

I got this from Afrinvest yesterday

Salliet:
But at the secondary market it comes at a premium and I believe requires you to have a CSCS account.

emmasoft:
No sanction if the respective funds you redeemed stayed the minimum holding periods and no fund manager will sanction you for bringing in your money because that is what keeps them in business.

emmanuelewumi:
Talk to your Stockbroker or bank for secondary market openings of fixed income securities

emmanuelewumi:
You don't have to buy in the primary market you can always buy fixed income funds in the secondary market at any time

emmanuelewumi:
It is self explanatory.

The various Sukuk bonds, their values and maturity dates