emmanuelewumi:



Too much book dey worry you. It is possible, but cant be consistent, by the 3 year the market will take back what it gave you.

500% annual return should turn your N3 million to about N8 billion or more in 5 years

If I Sabi book ,i will real appreciate 10percent per month on 5 m without head ach of calculation oh.If I am not wrong one oga here way like trascorp say he does it.That is enough for monthly bills oh

ositadima1:


Look at that chart, I see d chart I see endless possibilities.

Based on the chart.It means if you are able to hit the 10-15percent within a day or two in that month you are done with the month and do it the next month .Or you keep trading almost all days of the month to hit your targeted percent for the month after all commissions

Biafran4life:
Based on the chart.It means if you are able to hit the 10-15percent within a day or two in that month you are done with the month and do it the next month .Or you keep trading almost all days of the month to hit your targeted percent for the month after all commissions

I guess your system should determine when to enter or leave a trade. If u hit target u quit.

Pls, don't try it o, I was just joking. Though d values in d table are real.

Biafran4life:
Is mutual funds daily return or monthly

The account balance increases on a daily basis.....
That's how my AXA investment is set up

emmanuelewumi:


A N100 bond with a 16% coupon, must increase to N200 or thereabout to give a yield of 8% which was higher than money market yield in 2020

N200 bond at a coupon of N16, will give a yield of 8%.

Capital appreciation is not possible with cash or money market instruments

Wow!
I never thought of it that way
Thanks for the FREE education

RodgersAkpafu:

Wow!
I never thought of it that way
Thanks for the FREE education

I got to know about it very late, about 4 years ago.

Just monitor inflation, interest rate and stock market perform

Speculations has it that the Titan will pay as much as #15 for each share of union they will buy from the core investors. They agreed to pay a sum in the region of 1billion $ for the 89%
Who knows what the offer will be for the minority shareholders for the remaining 10%.

Mpeace:
Speculations has it that the Titan will pay as much as #15 for each share of union they will buy from the core investors. They agreed to pay a sum in the region of 1billion $ for the 89%
Who knows what the offer will be for the minority shareholders for the remaining 10%.

Why buy out minority’s when u already have the controlling units.....at this point they can rebrand and stop using the union name maybe they will become titan bank.....

I wait to see the new direction this core investor will pursue

maishai:


Why buy out minority’s when u already have the controlling units.....at this point they can rebrand and stop using the union name maybe they will become titan bank.....

I wait to see the new direction this core investor will pursue

But there are free floating rules that may be broken. A single shareholder having 89% stake in a company may not be allowed in the exchange.

emmanuelewumi:



I got to know about it very late, about 4 years ago.

Just monitor inflation, interest rate and stock market perform

Thanks for the information. I guess the capital appreciation also applies to fixed income funds.

This week on the podcast, I review my investing practice and share my wins/ mistakes in 2021.

Thanks for listening.

https://anchor.fm/value-nigeria/episodes/42--A-review-of-2021-My-wins-and-mistakes-e1c667u

Fitch Rates Guaranty Trust Holding Company 'B'; Outlook Stable
Wed 01 Dec, 2021 - 8:16 AM ET
Fitch Ratings - London - 01 Dec 2021: Fitch Ratings has assigned Nigeria-based Guaranty Trust Holding Company Plc (GTCO) a Long-Term Issuer Default Rating (IDR) of 'B' with a Stable Outlook and a Viability Rating (VR) of 'b'. A full list of ratings is below.
https://www.fitchratings.com/research/banks/fitch-rates-guaranty-trust-holding-company-b-outlook-stable-01-12-2021


GTCO Plc releases Q3 2021 unaudited results
.... Recently, the Bank was recognized as Africa’s Best Bank and the Best Bank in Nigeria at the 2021 Euromoney Awards for Excellence. It also retained its position as Africa’s Most Admired Financial Services Brand in the 2021 ranking of The Brand Africa 100: Africa’s Best Brands.
https://guardian.ng/business-services/gtco-plc-releases-q3-2021-unaudited-results/

Mpeace:
But there are free floating rules that may be broken. A single shareholder having 89% stake in a company may not be allowed in the exchange.

There are quirks too in the rules of the exchange, a majority shareholder can as well take forever to comply with the rules...... its about getting good lawyers

joboy834:


Thanks for the information. I guess the capital appreciation also applies to fixed income funds.

Yes, fixed income fund managers know the trick by converting part of the bonds to cash at the right time.

Some investors sold at 70% and more profit last year and packed the funds into equities during the lockdown of 2020, they are now on decent profits

Mpeace:
But there are free floating rules that may be broken. A single shareholder having 89% stake in a company may not be allowed in the exchange.

The company can be made a private company and then delist from the exchange

whats happened to courtville shares ? are they delisting?

emmanuelewumi:


A N100 bond with a 16% coupon, must increase to N200 or thereabout to give a yield of 8% which was higher than money market yield in 2020

N200 bond at a coupon of N16, will give a yield of 8%.

Capital appreciation is not possible with cash or money market instruments

Boss please I need you to explain in a very lame way what you just analysed. I did the current sukuk at 13% worth of N7m. What is in store for me considering your analysis. Thanks

faoogoke:

Boss please I need you to explain in a very lame way what you just analysed. I did the current sukuk at 13% worth of N7m. What is in store for me considering your analysis. Thanks

faoogoke:
Someone please assist me with returns on the sukuk bond being issued by the FG at 12.8%.
Please how much do I get paid yearly if I invest N5,000,000.
Thank you.

emmasoft:


640,000

emmanuelewumi:


N320,000 on 24th June and N320,000 on 24 December, for the next 10 years or whenever you decide to sell your investment

moneymanager:

what you reposted has nothing to do with the current question .Or you have a problem with his initial 5 m and subsequent 7 m.His question is based on when it gets to secondary market . How one can benefit from capital appreciation as a results of other factors. Which I don't equally understand the French and was expecting an explanation in simple English as he asked,thanks

faoogoke:

Boss please I need you to explain in a very lame way what you just analysed. I did the current sukuk at 13% worth of N7m. What is in store for me considering your analysis. Thanks

You will get N455,000 on 24th June 2022 and 24th December 2022 till 2031. That will be about N910,000 every year. And N9.1 million coupon in 10 years. Your initial investment of N7 milion will be paid back after the 10th year.


You can use your Sukuk and bond Investments as collateral to get loans equivalent to 80% of your Investments, financial institutions prefer Sukuk and bonds to stocks.

With your N7 million, you can get a loan of about N5.6 million.

There is a secondary market on FMDQ and NSE for the sale of your Investments before maturity.

Fixed income Investment can appreciate in price but not as volatile as equities.

Interest rates and inflation affects the price of your fixed income Investments. When interest rates and inflation increases the price of your Fixed income Investment will fall in the secondary market, if interest rate reduces the price will appreciate in the secondary market.

If Interest rate should reduce to 10%. The price of your Fixed income Investment of N100 at a coupon of 13% will increase to N130 in the secondary market.

If interest rate should increase from 13% to 15%, your fixed income Investment of N100 at a coupon of 13% will come down to about N87 in the secondary market.

But if you hold till maturity you don't have to worry about the price movement of your Fixed income Investment.

Part of the steady cash flow from your Fixed income Investment should be invested in equities especially when the market is bearish, real estate, Eurobonds etc

emmanuelewumi:



You will get N455,000 on 24th June 2022 and 24th December 2022 till 2031. That will be about N910,000 every year. And N9.1 million coupon in 10 years. Your initial investment of N7 billion will be paid back after the 10th year.


You can use your Sukuk and bond Investments as collateral to get loans equivalent to 80% of your Investments, financial institutions prefer Sukuk and bonds to stocks.

With your N7 million, you can get a loan of about N5.6 million.

There is a secondary market on FMDQ and NSE for the sale of your Investments before maturity.

Fixed income Investment can appreciate in price but not as volatile as equities.

Interest rates and inflation affects the price of your fixed income Investments. When interest rates and inflation increases the price of your Fixed income Investment will fall in the secondary market, if interest rate reduces the price will appreciate in the secondary market.

If Interest rate should reduce to 10%. The price of your Fixed income Investment of N100 at a coupon of 13% will increase to N130 in the secondary market.

If interest rate should increase from 13% to 15%, your fixed income Investment of N100 at a coupon of 13% will come down to about N87 in the secondary market.

But if you hold till maturity you don't have to worry about the price movement of your Fixed income Investment.

Part of the steady cash flow from your Fixed income Investment should be invested in equities especially when the market is bearish, real estate, Eurobonds etc

Very apt

emmanuelewumi:




Yes, fixed income fund managers know the trick by converting part of the bonds to cash at the right time.

Some investors sold at 70% and more profit last year and packed the funds into equities during the lockdown of 2020, they are now on decent profits

Thank you Oga Emma. So it is possible for fixed income fund to outperform Sukuk and FGN bonds?

The SCB secondary market yields are too low relatively.

emmanuelewumi:



You will get N455,000 on 24th June 2022 and 24th December 2022 till 2031. That will be about N910,000 every year. And N9.1 million coupon in 10 years. Your initial investment of N7 billion will be paid back after the 10th year.


You can use your Sukuk and bond Investments as collateral to get loans equivalent to 80% of your Investments, financial institutions prefer Sukuk and bonds to stocks.

With your N7 million, you can get a loan of about N5.6 million.

There is a secondary market on FMDQ and NSE for the sale of your Investments before maturity.

Fixed income Investment can appreciate in price but not as volatile as equities.

Interest rates and inflation affects the price of your fixed income Investments. When interest rates and inflation increases the price of your Fixed income Investment will fall in the secondary market, if interest rate reduces the price will appreciate in the secondary market.

If Interest rate should reduce to 10%. The price of your Fixed income Investment of N100 at a coupon of 13% will increase to N130 in the secondary market.

If interest rate should increase from 13% to 15%, your fixed income Investment of N100 at a coupon of 13% will come down to about N87 in the secondary market.

But if you hold till maturity you don't have to worry about the price movement of your Fixed income Investment.

Part of the steady cash flow from your Fixed income Investment should be invested in equities especially when the market is bearish, real estate, Eurobonds etc

Bless you sir.

joboy834:


Thank you Oga Emma. So it is possible for fixed income fund to outperform Sukuk and FGN bonds?

The SCB secondary market yields are too low relatively.

We have series of FGN bonds with different tenors.


The benchmark for most Fixed income Fund in the coupon on a 10 year FGN bond.

Most Fixed income Fund Managers have Sovereign and corporate bonds of different durations, they get coupons every month there are months whereby they get coupons up to 3 to 4 times in a month.

Fixed income Fund is good for those who can monitor interest rates, stock market performance etc.

Another reason some of us buy Fixed income Fund is because of reinvestment risk, it is not every time that we have the opportunity to buy Fixed income Fund in the primary, therefore we invest part of our regular coupons and dividends in Fixed income Funds.

The bond market give a better forecast of the direction of a country economy, while the stock market is a reflection of the country's economy.


Fixed income Fund is not bad for a conservative Investor who is concerned about the safety of his fund and long term appreciation of his fund. A N10 million Investment in United Capital fixed income fund in 2011 has grown to over N30 million in 2021 without adding a kobo to the investment.

emmanuelewumi:



We have series of FGN bonds with different tenors.


The benchmark for most Fixed income Fund in the coupon on a 10 year FGN bond.

Most Fixed income Fund Managers have Sovereign and corporate bonds of different durations, they get coupons every month there are months whereby they get coupons up to 3 to 4 times in a month.

Fixed income Fund is good for those who can monitor interest rates, stock market performance etc.

Another reason some of us buy Fixed income Fund is because of reinvestment risk, it is not every time that we have the opportunity to buy Fixed income Fund in the primary, therefore we invest part of our regular coupons and dividends in Fixed income Funds.

The bond market give a better forecast of the direction of a country economy, while the stock market is a reflection of the country's economy.


Fixed income Fund is not bad for a conservative Investor who is concerned about the safety of his fund and long term appreciation of his fund. A N10 million Investment in United Capital fixed income fund in 2011 has grown to over N30 million in 2021 without adding a kobo to the investment.

Please can I have your contact ? I would like to discuss important matters with you sir. Check my signature for my contact. Thank you sir.

azikiweironsi:


Please can I have your contact ? I would like to discuss important matters with you sir. Check my signature for my contact. Thank you sir.

Ask your questions here or quote me on a dead thread

emmanuelewumi:



You will get N455,000 on 24th June 2022 and 24th December 2022 till 2031. That will be about N910,000 every year. And N9.1 million coupon in 10 years. Your initial investment of N7 billion will be paid back after the 10th year.


You can use your Sukuk and bond Investments as collateral to get loans equivalent to 80% of your Investments, financial institutions prefer Sukuk and bonds to stocks.

With your N7 million, you can get a loan of about N5.6 million.

There is a secondary market on FMDQ and NSE for the sale of your Investments before maturity.

Fixed income Investment can appreciate in price but not as volatile as equities.

Interest rates and inflation affects the price of your fixed income Investments. When interest rates and inflation increases the price of your Fixed income Investment will fall in the secondary market, if interest rate reduces the price will appreciate in the secondary market.

If Interest rate should reduce to 10%. The price of your Fixed income Investment of N100 at a coupon of 13% will increase to N130 in the secondary market.

If interest rate should increase from 13% to 15%, your fixed income Investment of N100 at a coupon of 13% will come down to about N87 in the secondary market.

But if you hold till maturity you don't have to worry about the price movement of your Fixed income Investment.

Part of the steady cash flow from your Fixed income Investment should be invested in equities especially when the market is bearish, real estate, Eurobonds etc

Very educating. Thank you sir for always giving these free but invaluable explanations.

I'd like to know, if someone buys a 10 year bond which has depreciated in value possibly occasioned by higher interest rates;

1. Will he keep receiving the same coupon as the original holder or the coupon will tally with prevailing interest rate?

2. At the expiration, assuming he bought N10m worth of bond at depreciated price of N8m, will he be paid N10m or N8m by FGN?

IYGEAL:


Very educating. Thank you sir for always giving these free but invaluable explanations.

I'd like to know, if someone buys a 10 year bond which has depreciated in value possibly occasioned by higher interest rates;

1. Will he keep receiving the same coupon as the original holder or the coupon will tally with prevailing interest rate?

2. At the expiration, assuming he bought N10m worth of bond at depreciated price of N8m, will he be paid N10m or N8m by FGN?

Intelligent questions.

1) bonds are quoted in unit prices. If you bought a N100 bond at coupon of 13%. At N80, your investment will be N8 million, you will continue to get your N1.3 million coupon. The face value is N100.
At N80 the yield on your investment is about 16.5%. As a matter of fact Investors got yield of over 18% about 4 years ago

2) At maturity you will be paid N10 million, because the face value of the investment is N100

emmanuelewumi:



Intelligent questions.

1) bonds are quoted in unit prices. If you bought a N100 bond at coupon of 13%. At N80, your investment will be N8 million, you will continue to get your N1.3 million coupon. The face value is N100.
At N80 the yield on your investment is about 16.5%. As a matter of fact Investors got yield of over 18% about 4 years ago

2) At maturity you will be paid N10 million, because the face value of the investment is N100

Wow that's interesting. I have only invested in Savings Bonds and Treasury Bills.

So apparently the people who sell at the secondary markets either do so for Liquidity reasons or, when macroeconomic situations cause the prices to increase, for capital appreciation.

Lastly, does one need to open fresh accounts with traditional stockbrokers to have access to the money market instruments?

IYGEAL:


Wow that's interesting. I have only invested in Savings Bonds and Treasury Bills.

So apparently the people who sell at the secondary markets either do so for Liquidity reasons or, when macroeconomic situations cause the prices to increase, for capital appreciation.

Lastly, does one need to open fresh accounts with traditional stockbrokers to have access to the money market instruments?

I buy my FGN bonds through Stanbic IBTC Bank and Stanbic IBTC Stockbroker.

The ones bought through the bank are migrated to my CSCS account.

Very few Stockbrokers are knowledgeable and informed about the bond Market. The best are Stanbic IBTC Stockbroker and Afrinvest. Those are the two, I get daily market updates from.

emmanuelewumi:



I buy my FGN bonds through Stanbic IBTC Bank and Stanbic IBTC Stockbroker.

The ones bought through the bank are migrated to my CSCS account.

Very few Stockbrokers are knowledgeable and informed about the bond Market. The best are Stanbic IBTC Stockbroker and Afrinvest. Those are the two, I get daily market updates from.

Thank you sir.

Trove won't send me OTP when i tried depositing in my account. Is there a better App please. I'm a newbie