ukay2:




Investors that invested in FGN Bonds 2037 in 2018 at 18% yield get their capital investment by 2024 (6 years) via coupon payments. The remaining coupons of 2025 to 2037 (12years) plus capital are all gains for the investors

....just know how to play your cards well.

Won't do anything rental income Investments anymore.....as am now a lazy investor that wants no headaches

Brotherly..

neyyoh:


Buy some high risk dividend payers like orc, gain.. at 14% ... Put the monthly dividends in voo..

1666 shares of orc will fetch 100 usd per month.. going actively into voo.

You can scale that up depending on your capital.

It's working for me .

If my calculation is right, that's about $10k on $ORC. Hmmmmm on a risky stock. I never get that kind money.

But I kinda like this strategy though. I might play with it and see how it works. Thanks boss.

Tobex4realTobex234:


If my calculation is right, that's about $10k on $ORC. Hmmmmm on a risky stock. I never get that kind money.

But I kinda like this strategy though. I might play with it and see how it works. Thanks boss.

Buy around the low 5s. I can guarantee you'll thank me lol.

You will never see red, always green, even when everything tanked recently it kept going up .

Entry 5.25 or lower.

...

RayRay06677:


Good evening sir, if one invest 50m for 2037 bond, how much will be his returns annually?
Thanks

You will get between N6 million and N7 million

ukay2:




Investors that invested in FGN Bonds 2037 in 2018 at 18% yield get their capital investment by 2024 (6 years) via coupon payments. The remaining coupons of 2025 to 2037 (12years) plus capital are all gains for the investors

....just know how to play your cards well.

Won't do anything rental income Investments anymore.....as am now a lazy investor that wants no headaches

They must have bought at a discount

Emndy:


Bros, "compounding" they say is the 8th wonder of the world. Those who understand it, use it.

9m investment every year @ 15%

Year 1: 10.35m
year 5: 69.78m
year10: 210.14m
year15: 492.46m
year20: 1.06B
year25: 2.20B
year30: 4.5B

Finding an investment where this can be put in autopilot is the wahala

emmanuelewumi:



In the primary market, you will need N50 million.

In the secondary market, you will need about 100k, if you buy through Stanbic IBTC Bank others will require between N1 million and N20 million

Pls do u need to have a stock account with stanbic IBTC before you can buy secondary bond through them ?? Thanks

emmanuelewumi:



Secondary market. These are the offers sent to me this morning

By which investment house?
Kindly share platforms through which investors can buy these bonds easily

akinola98:


Pls do u need to have a stock account with stanbic IBTC before you can buy secondary bond through them ?? Thanks

Either bank account or Stockbroking account

emmanuelewumi:


Either bank account or Stockbroking account

Ok.. thanks

Also let him know that he will lose part of his capital if he liquidate when interest rate is high, this is giving me serious headache now..i bought 100 units from primary market last year and wants to liquidate now..my bank is telling me that i will lose about 12M from my capital...na only once i don chop coupon, next one should be next month.

ukay2:


1.....at maturity; depending on the year you invested

2.....very easy to liquidate via the same investment house or bank you used

3....yes, you can buy the same bond from secondary market, so you will get 2 coupon alerts at coupon payments dates, if you continue like dates, the numbers of your coupons alerts keep increasing

.

XiaoLi:
Also let him know that he will lose part of his capital if he liquidate when interest rate is high, this is giving me serious headache now..i bought 100 units from primary market last year and wants to liquidate now..my bank is telling me that i will lose about 12M from my capital...na only once i don chop coupon, next one should be next month.

How much did you Invest? What was the coupon when you bought? What is the tenor of the Investment?

decargne:
Good morning sir. I used stanbic ibtc, opened an account with their stock broking firm and used the whole of my minimum balance after opening the account to purchase the bonds. Thanks.

Minimum for Stockbroking account opening is N5 million in cash or shares

Choosing between bonds and real estate is a decision every investor would need to make at a point. I was at that crossroad so months back and it was really a difficult decision.
If you have a personal house already, go for Bonds. Bonds make more sense short term but real estate give sentimental fulfillment and if you get it right, better returns longterm

Thisnut:
This long term bond is like a trap. When you want to eat with the devil, it's better to use a long spoon; In this case, the govt is the devil.

1. Why would someone borrow the govt money for an extended years when the govt can always print money to pay you back? Nigerian govt solicited for USD some months ago to pay 5naira for every USD; after they took all the USD, the crooks of a govt decided to print more money and devalued the naira. Just imagine some folks actually fell for that old trick. They gave treasure bill at 7% last year and naira went down 39% against USD the following year.

2.What would be the purchasing power in the next 20years following the trend in the last 6years? What if the economy gets better and naira becomes strong would it make your property value go down?

3. What is the value of a house bought 1m naira 20 years ago and what is the value of the money right now? Let say the money was compounded at 15% and the estate moved at 7% of the house value at every given point.

4. How fast can you flip a real estate vs a fixed bond and What do you risk losing breaking a bond?

5. Something just happened and I need my money now for better opportunities; shut up and comeback in 10yrs.


My take:

Real estate might not give a promising future, but always find a way to win in the face of inflation, deflation and recession. Right now the house market in the U.S has gone up more than 20% since the pandemic, while the mortgage rate has gone down more than 50%.

1. If that is the case why doesn't the govt print the money they need and fund their projects directly rather than borrowing money through bonds?

2. You can compound your coupon payments as a hedge against inflation

4. The only effect would be the prevailing intetest rate when u decide to sell. Better to sell when interest rates are low.

5. You can always sell your bond in the bond market.

Housing rates in US are only high because of rising lumber prices. This is not sustainable in the long term, at most 2-3 years. In the last 2 weeks, lumber prices have fallen by as much as 40%. Coupled with the reopening plus interest rate which the Fed would surely raise by 2022, mortgages would go up.

Assuming I have more than 5M worth of shares somewhere else does that qualify me to open an account with them even if I do not intend to transfer the shares?

emmanuelewumi:



Minimum for Stockbroking account opening is N5 million in cash or shares

This bond thing can get confusing sometimes, who can explain in simple layman's English how interest rates affect bonds. If possible use case study of 1 million and 2 different (high and low) interest rates to illustrate.
Thanks in advance.

XiaoLi:
Also let him know that he will lose part of his capital if he liquidate when interest rate is high, this is giving me serious headache now..i bought 100 units from primary market last year and wants to liquidate now..my bank is telling me that i will lose about 12M from my capital...na only once i don chop coupon, next one should be next month.

Do you agree with him

decargne:
So I had to quit my ghost mode viewing just to be able to appreciate you openly for the good things you are doing by putting out your knowledge on this thread. Please don't stop sir, no matter whatever anybody may be doing.
I reached out to you sometime in 2019 asking you about purchase of bonds (an idea I got on this thread by the way) and you offered your fatherly advice I really appreciate you. so far I've gotten coupons of over 1.2 from the bonds which was reinvested into a building project ordinarily at the level of my income there's no way I would have thought of building a house (a twin two-bedroom apartment for that matter) but with all the knowledge I am getting from this place have been able to put money to good use instead of buying frivolities that will not last. Thank you sir and thank you alot great people. Please keep contributing, continue the good work, God bless you!

On a lighter note, nobody should use this post against me and call me audio when I finally blow ooo because I'd definitely blow with what I am getting here.

Iam the one collecting the 10% tithe for the forum.

ojesymsym:
Assuming I have more than 5M worth of shares somewhere else does that qualify me to open an account with them even if I do not intend to transfer the shares?

Simple English, you open a Stockbroking account with them with N5 million in cash or shares. How else should I explain it?

ojesymsym:
This bond thing can get confusing sometimes, who can explain in simple layman's English how interest rates affect bonds. If possible use case study of 1 million and 2 different (high and low) interest rates to illustrate.
Thanks in advance.

You bought bond in the primary market at N100 with a coupon rate of 15%.

If interest rates go down to 10%, the price of your bond will appreciate to N150 in the secondary market. 15 divided by 150 will give 10%

If interest rate increases to 20%, your bond will depreciate to N75 in secondary market. 15 divided by 75 will give you 20%


The yield from your bond will tally with the prevailing interest rates.

ojesymsym:
This bond thing can get confusing sometimes, who can explain in simple layman's English how interest rates affect bonds. If possible use case study of 1 million and 2 different (high and low) interest rates to illustrate.
Thanks in advance.

Face value is the money amount the bond will be worth at maturity; it is also the reference amount the bond issuer uses when calculating interest payments. For example, say an investor purchases a bond at a premium $1,090 and another investor buys the same bond later when it is trading at a discount for $980. When the bond matures, both investors will receive the $1,000 face value of the bond.


The coupon rate is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage. For example, a 5% coupon rate means that bondholders will receive 5% x $1000 face value = $50 every year.


Coupon dates are the dates on which the bond issuer will make interest payments. Payments can be made in any interval, but the standard is semiannual payments.


The maturity date is the date on which the bond will mature and the bond issuer will pay the bondholder the face value of the bond.


The issue price is the price at which the bond issuer originally sells the bonds.

ositadima1:


Face value is the money amount the bond will be worth at maturity; it is also the reference amount the bond issuer uses when calculating interest payments. For example, say an investor purchases a bond at a premium $1,090 and another investor buys the same bond later when it is trading at a discount for $980. When the bond matures, both investors will receive the $1,000 face value of the bond.


The coupon rate is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage. For example, a 5% coupon rate means that bondholders will receive 5% x $1000 face value = $50 every year.


Coupon dates are the dates on which the bond issuer will make interest payments. Payments can be made in any interval, but the standard is semiannual payments.


The maturity date is the date on which the bond will mature and the bond issuer will pay the bondholder the face value of the bond.


The issue price is the price at which the bond issuer originally sells the bonds.

Thank you so much

emmanuelewumi:
Do you agree with him

Not completely. Situations that brings about lending and borrowing are not absolute. I will say yes, where a person or people have a track record of being perpetual debtors. However, some people might just be genuinely interested in borrowing for something serious with genuine interest and laid down plans to refund it too.

emmanuelewumi:


You bought bond in the primary market at N100 with a coupon rate of 15%.

If interest rates go down to 10%, the price of your bond will appreciate to N150 in the secondary market. 15 divided by 150 will give 10%

If interest rate increases to 20%, your bond will depreciate to N75 in secondary market. 15 divided by 75 will give you 20%


The yield from your bond will tally with the prevailing interest rates.

Other factors like - Inflation and credit ratings, supply and demand, market sentiments, stocks.

ositadima1:


Other factors like - Inflation and credit ratings, supply and demand, market sentiments, stocks.

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.