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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4615394 Views)
Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)
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Re: Treasury Bills In Nigeria by Nobody: 7:53am On Mar 30, 2021 |
emmanuelewumi: Can you give an example of a bank where depositors lost their money and bond holders were secured? Depositors have priority over bond holders. If a bank fails, depositors get paid before bond holders. The point I am making is that an MFB that bond holders are secure cannot lose its depositors funds. There is no way the bond holders interests in a bank are more protected than depositors’ interests. If LAPO’s bond holders are secure, then it means its depositors are also secure. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 7:55am On Mar 30, 2021 |
Even the transport company that has the franchise for Ikorodu to TBS raised N6 billion in corporate bond paying 14% per annum and they have been consistent. The Trustees got a legally binding agreement from LASG that the franchise will continue for the duration of the 6 year bond |
Re: Treasury Bills In Nigeria by Nobody: 7:57am On Mar 30, 2021 |
emmanuelewumi: I was talking about MFBs bonds vs deposits o. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 8:01am On Mar 30, 2021 |
Lazyyouth4u: There are professional advisers to a bond offering, reporting accountant, corporate lawyers, Investment bankers, credit rating agencies, regulatory bodies CBN, NDIC and SEC. A bank won't go down over night. Nigeria banks don't raise funds through corporate bonds, equity is the preferred option. Those who opted for bonds didn't do it in Nigeria, they did Eurobonds on the London Stock Exchange. So it is a very rigorous exercise, maybe just 20% of the banks can raise dollar denominated debt instruments |
Re: Treasury Bills In Nigeria by SMJay: 8:03am On Mar 30, 2021 |
emmanuelewumi:I agree completely. |
Re: Treasury Bills In Nigeria by Nobody: 8:04am On Mar 30, 2021 |
emmanuelewumi: Boss, Eurobonds do not have preference over depositors funds in a bank o. |
Re: Treasury Bills In Nigeria by SMJay: 8:04am On Mar 30, 2021 |
Lazyyouth4u:If you say before the bank consolidation by Soludo, yes most bond holder get paid before depositors. |
Re: Treasury Bills In Nigeria by SMJay: 8:06am On Mar 30, 2021 |
emmanuelewumi:14%?, what the minimum amount for this CORPORATE bond. |
Re: Treasury Bills In Nigeria by Nobody: 8:08am On Mar 30, 2021 |
SMJay: Sorry sir, please what are you talking about? ![]() |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 8:10am On Mar 30, 2021 |
Lazyyouth4u: That is why less than 20% of them will qualify for it Any bank that can raise Eurobond is a strong bank Zenith bank has equity of over N1 Trillion or about $2 billion. There financial ratios are also top notch, raising $400 Eurobond should not be a problem. But a bank like Unity Bank with a negative equity of over N200 billion can't try that. I don't understand why CBN is allowing that bank to continue in business 3 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 8:11am On Mar 30, 2021 |
SMJay: Most corporate bonds will require a minimum of N5 million, |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 8:12am On Mar 30, 2021 |
emmanuelewumi: Primero Transport is the name of the company |
Re: Treasury Bills In Nigeria by SMJay: 8:12am On Mar 30, 2021 |
emmanuelewumi:Unity bank is not a strong bank. |
Re: Treasury Bills In Nigeria by SMJay: 8:13am On Mar 30, 2021 |
emmanuelewumi: ![]() emmanuelewumi: |
Re: Treasury Bills In Nigeria by Nobody: 8:18am On Mar 30, 2021 |
emmanuelewumi: Any MFB that can issue bonds is not a weak MFB. That’s my point ![]() If LAPO is able to issue BBB rated bonds that you say are secure, there is no way your deposits there are not safe. If LAPO should go under, the bond holders will never receive their money before depositors. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 8:21am On Mar 30, 2021 |
Lazyyouth4u: I equally wrote that 99.9% of microfinance banks can't satisfy SEC stringent requirements for bond issuance 1 Like |
Re: Treasury Bills In Nigeria by Nobody: 8:22am On Mar 30, 2021 |
emmanuelewumi: My oga, all these you have written have nothing to do with the point I made o. I said if an MFB’s bonds are secure, why would the deposits not be? |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 8:23am On Mar 30, 2021 |
SMJay: It used to be Bank of the North. Northern State governments are the majority shareholders of the bank 1 Like |
Re: Treasury Bills In Nigeria by Nobody: 8:23am On Mar 30, 2021 |
emmanuelewumi: Okay. My point was that any MFB that has bonds which you say are very secured cannot have deposits that are also not secure ![]() |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 8:25am On Mar 30, 2021 |
Lazyyouth4u: Do business with the few ones that can successfully raise bonds, which is about 0.5% of the players |
Re: Treasury Bills In Nigeria by afroxyz: 8:26am On Mar 30, 2021 |
Lazyyouth4u: Debtors always get paid first |
Re: Treasury Bills In Nigeria by afroxyz: 8:27am On Mar 30, 2021 |
emmanuelewumi: You know why na. The northern connection |
Re: Treasury Bills In Nigeria by afroxyz: 8:31am On Mar 30, 2021 |
ojesymsym: Most of the stocks they are complaining about are penny stocks which are extremely volatile. |
Re: Treasury Bills In Nigeria by Nobody: 8:33am On Mar 30, 2021 |
afroxyz: I’m guessing you meant creditor ![]() So a bond holder and a depositor are both lenders/creditors of a bank. 1 Like |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:25am On Mar 30, 2021 |
Lazyyouth4u: Bonds are more secured You have N10 Million in a money market fund and N10 million in a fixed deposit, the fund in the money market fund is more secured 1 Like |
Re: Treasury Bills In Nigeria by maishai: 9:28am On Mar 30, 2021 |
I need a bond that can pay me @ least 15% per annum for the next 9 years.......... Hopefully a bond thread will be opened, I read in a lot of annual report companies paying off bonds and the least coupon they pay is 13%. That are never advertised |
Re: Treasury Bills In Nigeria by Nobody: 9:40am On Mar 30, 2021 |
emmanuelewumi: The bolded has got absolutely nothing to do with a bank’s capital structure. Bonds issued by banks are not more secured than depositors funds. I don’t know where you are getting this from. |
Re: Treasury Bills In Nigeria by Nobody: 9:49am On Mar 30, 2021 |
Lazyyouth4u:When a bank closes shop.The bond holders are paid first.They are seen like preference share holders while depositors are paid last after ndic/recovery must have come into the matter.They are more like ordinary share holders.Unlless it has changed |
Re: Treasury Bills In Nigeria by Nobody: 9:58am On Mar 30, 2021 |
Lazyyouth4u:The cooperate bonds can hardly fail while the bank as a company can fail.The bond failure is a big dent to the image of the country.The worst case is to extend or renegotiate the tenure just like the case in vanuzula.Thst is why bonds are more secured. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 10:02am On Mar 30, 2021 |
Lazyyouth4u: Representative of the issuer of the bond ie Trustee is represented on the board of the company if the debt is substantial to the business capital structure, they also have representatives on the investment, risk management and other important committees of the board. Who are the representatives of the depositors on the board or important committees of the bank |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 10:04am On Mar 30, 2021 |
Biafran4life: We have sovereign and corporate bonds. Sovereign bonds are issued by countries, while commercial papers and corporate bonds are issued by businesses 1 Like |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 10:06am On Mar 30, 2021 |
maishai: Who is your Stockbroker? They are advertised, especially if you use some of the big Stockbroking firms |
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