₦airaland Forum

lifeskilz129:
Can Somebody help me calculate roi in this scenerio! If my investment stratergy is to invest in fgn bond with coupon of 15%. Let say i invested 200000 and i buy additional 10000 for 5yrs. How much would be my total profit? I calc 15% for 5yrs yield to 100% return on investment without additional monthly capital

vicmoore:
Better still..the site orientation needed

vicmoore:
100x59 meters or ft?

Will also need the site orientation

ihedioramma:
morning dear . @ukay2 if i am you i will buy now and keep some money if i see it below #7 or #7 i will buy more.

Yem0350:
I will advise you buy in tranches. No ones can perfectly predict the market movement except God. The stock is still cheap to buy. Anyway, some ogas here r waiting for it @ #6. It may or maynot get dere.

ukay2:
STOCK GURUS IN THE HOUSE


PLEASE SHOULD I BUY FBNH SHARES NOW FOR LONG TERM OR I SHOULD WAIT FOR THE STOCK PRICE TO COME DOWN MORE?

ADVICE PLEASE

reajen:
We really appreciate your nice comments and usual patronage, God bless you. 08066327787, 08122913183.

tioenconsults:
Call us please, Thanks

Raylight2:
how much am I likely going to make in two years for a 10k bond/?

NairaQuest:
A five year bond with a coupon of 14.2% and a required yield of 15% (TYM) will be valued at N972.54 with face value of N1000. I do not have the term sheet of the bond, so I do not know if they are being allocated at par or discount but by my valuation they should be allocated at discount. If that is true, you will need to pay N 486,271.84 plus any broker charges for a bond face valued at N500,000. That is at the primary market, you decided what yield you want, in this case 15% but in the secondary market, you no longer decide the yield but the market does after factoring in other things like the credit quality of the issuer, forces of demand and supply, and other fundamentals of the economy like the price of crude, inflation, exchange rate etc. If the market interest rate increases, and they are bound to given the economic situation in Nigeria, the price of the bond will decrease. Let us assume that over the next week market interest rate increases to 15.5, then the price of this bond will become N 955.89 meaning that if you buy it then you will only need N 477,944.17 instead of N 486,271.84, a decrease of N8,327.67.
Note however that if market rate had gone down to 14.5% you would buy it at N 494,792.65, an increase of N8,520.81
So sometimes, if you are able to gauge the direction of market interest rate correctly and depending on the availability of the bond in the secondary market, it may be better to buy it at the secondary market especially if you intend to hold the bond to maturity.

Let me know if you need more

www..com

NairaQuest:
There are either of two ways to buy a bond. Either directly during the auction process or through the market which is OTC in Nigeria for now.
The price of a Bond is determined largely by movement in interest rate such that if market interest rate goes up, the price of the bond goes down. Given that market interest rate in Nigeria is going up or will go on as a result of the volatility in the exchange rate and the slowness of the current government, it stands to reason that the prices of bonds will go down so you can get it cheaper then. Let me know if you need further explanation

NairaQuest:
Why do you not want to buy from the secondary market, with yield widening you will get it at a cheaper price

feelamong:
Did you ask what rate are they willing to roll over for you? usually at the expiration, you money drops back into ur account unless you indicate that it should be rollover..

yesterday i assisted one of my friends to purchase 85days Tbills at 10.5% in the secondary market..

i doubt if the 91days will do more than that in the auction today...

feelamong:
the last Auction Stop rates were posted...

91 days - 10%

182 days - 12.625%

battleaxe:
Is anyone going for FGN bonds this week? What is adviced rate for the 15.54% feb 2020 FGN bonds?
Thanks.

pythondjango:
why must u buy those mofo fbnh now and why okomuoil.Pls keep ur money.But if u want to dash d market.Make you u give our Deacon in d house(ihe whatsoever)

Successbay:
Yes @ Lomomike, would search for him,

Thanks chief.

feelamong:
Go for your broker rate..thats what i do now! its very competitive at the bond markets these days as stock markets keeps crashing...

yea, your coupon will be paid into ur bank account but you need a clearing house where the Bonds are held until you sell or matured! the DMO insist on a custodian opening a CSCS account for you. unlike in Corporate bonds where you will just use your normal CSCS account you use for buying shares..

feelamong:
To invest in FGN bonds you need to approach a custodian to open a cscs account for you. Alternatively just ask ur bankers to talk to their own custodian

Alternatively use ur brokers..i actually use my brokers.

As for which is better? It all depends.

I invest in bonds which has a higher rate but also higher holding period to use the coupons for settling school fees

I use tbills to settle my madam every 90 days..

frank94:
Ukay wait till January 2015,because two Nigerians was deported yesterday do to Ebola virus,although those guys Dont have the virus,but they are taking measures not to allow the virus enter here.but for the main time try and gather your documents ready and also money for bond 550k so that by january you will be fully prepared to come here.@sonafagod,plz refrace back your questions again.

frank94:
Ukay i still remember you,will get back to you when I'm settled from work.

frank94: quote me and do not quote me wrong,I have never said I can procure trinidad and Tobago visa to Ukay,neither did I say I will give him invitation to come here.check all my post here in nairaland.I'm not an agent.I only give advice and guidelines.what
I want to discuss with him is nothing corncerning visa issues.mind you visa is not a big deal,any one can get a visa and travel out.To be honest and truthful,had it been I followed the way people like you give advice in this nairaland,I won't have traveled out and achieved what i have now,I thank god I man up and followed my instinct with certain good advice I got from some one in this nairaland in this my same post that's why traveled and thank god for my life today.so in some things you do,back out be on the scene and watch how things go ok,every one is not the same.what I want to tell him is confidential and partaining this country,which I cant make public to avoid spoiling things,because i Dont know Mr A or B that's assesing this site because its public.if you keep on with your infringement and obstacle to this, I believe ukay can go ahead and ask me other certain things he need to know but I cant give out all because of the publicity of nairaland