Biafran4life:
Now I tire too.I thought your argument was bonds issued by banks and depositts by customers rank equal.So which is corporation and bank

Corporate bonds issued by banks are different from the FG bonds or sovereign bonds sold by banks.

Unfortunately most banks prefer equity to debt.

I think LAPO has to go for debts or corporate bonds, because investors wanted a risk free Investment in the microfinance bank

emmanuelewumi:



SEC does not allow junk bonds in Nigeria. The conditions to issue corporate bonds are very stringent in Nigeria. The bond Market is over 40 years in Nigeria and there is no report of any that went bad, I think that is highly commendable.

Pension fund managers came to scene about 15 years ago

My oga, do you know there are some insurance companies that collected convertible high yield funds from some high yield investors? I won’t mention their names for obvious reasons but if you look at the financials, you can spot them. These are listed entities o.

A few years ago, some large international companies (think Allianz, Prudential, etc) showed interest in these insurance companies but had to pass because they couldn’t deal with those high yield convertible bonds.

Cyberknight:


More's the pity, maybe that's why SMEs are forced to rely on rapacious banks and FFF (family, friends and fools).

They should allow high-yield paper issues, maybe limit uptake to institutional and not retail investors.

High yield and very high risk. Companies with junk bonds have very poor credit ratings. It will be almost impossible for a company with poor credit rating to be allowed into the Nigerian bond Market for funding

Lazyyouth4u:


My oga, do you know there are some insurance companies that collected convertible high yield funds from some high yield investors? I won’t mention their names for obvious reasons but if you look at the financials, you can spot them. These are listed entities o.

A few years ago, some large international companies (think Allianz, Prudential, etc) showed interest in these insurance companies but had to pass because they couldn’t deal with those high yield convertible bonds.

They have been using the convertible bonds to take over ownership of such businesses through the back door. It is cheaper, the companies are selling at a very low valuation so it pays the investors.

They should just make the convertible bonds, a level playing ground thing.


The owner of Peace Transport became the major shareholder of C and I Leasing by using this route

Cyberknight:


This is true.
Junk bonds generally pay above-average yields, so if your appetite for risk is high, there are deals to be found.
Remember Michael Milken and the legalised scams he perpetrated at Drexel Burnham Lambert in the 1980s.

Exactly. There’s a book on his exploits. Barbarians at the gate...

Lazyyouth4u:


Exactly. There’s a book on his exploits. Barbarians at the gate...

No, Barbarians at the Gate is about KKR and the tobacco company they did an LBO on and sunk.

Miliken was involved in the S&L deregulation debacle, there's another book about his activities, whose name I can't remember just now.

Edit - I googled : Inside Job is the name.

Lazyyouth4u:


No. They don’t prorate. You get your full amount up to 250k.

And yes it’s the highest they can get. That’s why financial advisers advise high net worth individuals to spread their free cash over the limit in different banks.

If you have $1 million, how much will you get when the bank is liquidated?

Cyberknight:


No, Barbarians at the Gate is about KKR and the tobacco company they did an LBO on and sunk.

Miliken was involved in the S&L deregulation debacle, there's another book about his activities, whose name I can't remember just now.

Edit - I googled : Inside Job is the name.

Ah ok. Barbarians at the gate is the one about how they used junk bonds to buy RJR Nabisco. Milkens company (Drexel I think) organized the junk bonds.

I see he was also involved in Inside Job. Bad guy!

emmanuelewumi:


If you have $1 million, how much will you get when the bank is liquidated?

250k is maximum insured. You can get more depending on how much is raised from liquidation.

Why is SEC foot dragging on the trading in derivatives in Nigeria?

Guys which bank can I get treasury bill. Gtbank says they're no longer selling tb

emmanuelewumi:



Corporate bonds issued by banks are different from the FG bonds or sovereign bonds sold by banks.

Unfortunately most banks prefer equity to debt.

I think LAPO has to go for debts or corporate bonds, because investors wanted a risk free Investment in the microfinance bank

I Know.If I am not wrong the bond discussion is on the bond issued by bank to raise long time fund

Lazyyouth4u:


250k is maximum insured. You can get more depending on how much is raised from liquidation.

Correct.
Provided sharp - sharp in civilised countries, we all remember 2008.

Has ndic upgraded to 500k.i use to know 50k those days when we tried to get my dad money from old failed bank

Biafran4life:
I Know.If I am not wrong the bond discussion is on the bond issued by bank to raise long time fund

For FG bonds sold by banks, FG is the issuer.


Banks or Businesses are the issuers of corporate bonds

emmanuelewumi:



That is the highest they can get


Will also be prorated. Those will $1000 might get $500, those will $10 million will get maximum of $250,000

I think this is wrong. In fact, the insurance is per deposit per FDIC-insured instrument. So if you have $250k each in 4 banks. You will get your $1m the next business day if a bank goes under.

Emmanuel360:
Guys which bank can I get treasury bill. Gtbank says they're no longer selling tb

Try Sterling

Tobex4realTobex234:


I think this is wrong. In fact, the insurance is per deposit per FDIC-insured instrument. Is if you have $250k each in 4 banks. You will get your $1m the next business day if a bank goes under.

If you have $1 million in four bank accounts, how much will you get

emmanuelewumi:
Why is SEC foot dragging on the trading in derivatives in Nigeria?

the market is not yet matured enough. look at the volume of trades in NSE alone. Not to talk of people trading on inside information.

Even other imvestment vehicles such as ETFs are illiquid. This is in addition to the financial illiteracy. Less than 500k people operating TBs yet 171bn was lost to MBA forex.

How would they fare with something as complex as derivatives. But if i get bar, na one finance investment vehicle i go like to sell to Nigerians. So much money to be made.

afroxyz:


the market is not yet matured enough. look at the volume of trades in NSE alone. Not to talk of people trading on inside information.

Even other imvestment vehicles such as ETFs are illiquid. This is in addition to the financial illiteracy. Less than 500k people operating TBs yet 171bn was lost to MBA forex.

How would they fare with something as complex as derivatives. But if i get bar, na one finance investment vehicle i go like to sell to Nigerians. So much money to be made.

Very true.

I don't invest in what I don't understand, I won't invest in them for now.

My opinion though.

You will sell an investment vehicle to Nigerians.

So much money to be made by few and many will lose money

An investment where 80% or more are not making money or steady cash flow, is a no no.

cutedharmee:

Try Sterling

Thanks boss

Tobex4realTobex234:


OgaMadam ask questions so that you won't miss road oo. They started as One Credit, then One Finance, then Paylater and now Carbon.

emmanuelewumi:
An investment where 80% or more are not making money or steady cash flow, is a no no.

Kindly such Investment.

lavylilly:
Kindly such Investment.

Buy an income generating property that is approximately priced, buy FG bonds or corporate bonds, buy Treasury Bills, buy shares of well managed businesses that are selling at a discount for their steady dividends, get the necessary experience, information, knowledge, skills, tools and start a business..


If you cant start a business of yours, you should learn how to identify good Investments

emmanuelewumi:



Very true.

I don't invest in what I don't understand, I won't invest in them for now.

My opinion though.

You will sell an investment vehicle to Nigerians.

So much money to be made by few and many will lose money

People lose money in all investment endeavours. To deal in derivatives I have to be regulated by SEC na. I was thinking more of being a writer of options

emmanuelewumi:



By an income generating property that is approximately priced, buy FG bonds or corporate bonds, buy Treasury Bills, buy shares of well managed businesses that are selling at a discount for their steady dividends, get the necessary experience, information, knowledge, skills, tools and start a business..


If you cant start a business of yours, you should learn how to identify good Investments

Well said, the bolded any tips?

emmanuelewumi:



Buy an income generating property that is approximately priced, buy FG bonds or corporate bonds, buy Treasury Bills, buy shares of well managed businesses that are selling at a discount for their steady dividends, get the necessary experience, information, knowledge, skills, tools and start a business..


If you cant start a business of yours, you should learn how to identify good Investments

Income generating Property- such as?

Aside Primero any other corporate bond?

Shares, which do you recommend?

For a bank, depositors are paid first before bondholders.

emmanuelewumi:


If you have $1 million in four bank accounts, how much will you get

If you have $1 million in 4 bank accounts in different banks, e.g $1 m in Zenith, $1m in GTB, and so on ($4 million?), you will get $250 x 4 = $1 million, if all 4 bank accounts are held with 4 different banks all of which fail.

If you have $1 million spread among 4 different bank accounts with the same bank (e.g $250k in a current account in Zenith, $250k in a savings account in Zenith, $250k in fixed deposit account in Zenith, etc.), if that bank fails you get $250k only.

Note that a deposit guarantee is just a means of immediately providing depositors with money to keep them afloat until after liquidation, when they will receive shares of the liquidation proceeds proportional to their deposits.

LauraClasikVibe:

Income generating Property- such as?

Aside Primero any other corporate bond?

Shares, which do you recommend?

Income generating property is self explanatory.


For corporate bonds get in touch with your Stockbroker, United Capital, Lapo Microfinance, Primero Transport are the few that raised funds not quite long ago

Emmanuel360:
Guys which bank can I get treasury bill. Gtbank says they're no longer selling tb

They still sell may be they mean you are late to apply for this week's primary auction