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Re: Bonds Investors Hub by Sach: 10:17pm On May 27, 2018 |
awesomeJ: Good point...., thanks. |
Re: Bonds Investors Hub by Calebbold: 4:53am On May 28, 2018 |
awesomeJ: Your explanation would have been the case if most of the units for sale is #100 per unit or something below. Just realized that the units for sale is usually #1000 per unit. 1 Like |
Re: Bonds Investors Hub by awesomeJ(m): 9:49am On May 28, 2018 |
Calebbold:Not always 1000. Make your findings. And what does it matter? All you need do is use 900 and 1000 where I used 90 and 100. Even at 100,000 a unit, the analysis holds still. There are lots if bonds with N100 face value though. 3 Likes |
Re: Bonds Investors Hub by Liljel: 10:06am On May 28, 2018 |
awesomeJ: I do not think so , this is a capital market instrument hence they try to avoid buy today sell tomorrow because bonds unlike tbills are not comparably liquid. |
Re: Bonds Investors Hub by mcci: 10:11am On May 28, 2018 |
awesomeJ: Please help clarify. Would the guy who bought at N90 get 9M or 10M at maturity? |
Re: Bonds Investors Hub by Liljel: 10:13am On May 28, 2018 |
awesomeJ: well , they seek to issue 50bn worth of bond and they have done less than 50% , first offer was august 2017 , the last offer was on feb 26 and ended feb 28 worth of 4bn at the rate of 15.75% . The feb offering was the second trench of the 50bn they intend to offer. The bond is fully backed by LASG hence it has an underlying asset of the Lagos state treasury for 50 years. The last bond offering was not caped hence i think it is open to all and sundry. I do not know when the next trench will be auctioned but going by my estimation July, August should be next. |
Re: Bonds Investors Hub by Liljel: 10:22am On May 28, 2018 |
Just2endowed2: Check business day of February 28th 2018 for their last offer |
Re: Bonds Investors Hub by awesomeJ(m): 10:22am On May 28, 2018 |
mcci:Since the guy bought 100,000 units, with each having a face value of N100, he will get 10m upon maturity. |
Re: Bonds Investors Hub by awesomeJ(m): 10:25am On May 28, 2018 |
Liljel:Thank you for this timely info. However like you said, we have to watch out for their secondary market liquidity first. Thanks again. |
Re: Bonds Investors Hub by Liljel: 10:29am On May 28, 2018 |
awesomeJ: Bonds are units in 1000 |
Re: Bonds Investors Hub by Liljel: 10:31am On May 28, 2018 |
awesomeJ: Anytime my boss |
Re: Bonds Investors Hub by awesomeJ(m): 10:41am On May 28, 2018 |
Liljel:All these bonds have unit prices of 100
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Re: Bonds Investors Hub by Kolping: 12:04pm On May 28, 2018 |
Nairametrics - May 28, 2018 The Past Week (May 21 – 25) FGN bonds yields remained largely unmoved; it dipped slightly down 5 bps but remained range bound between 13.1% and 13.5%. Marginal rates climb at the May FGN bond sale: At the monthly bond auction, where the Debt Management Office (DMO) had NGN70 billion worth of bonds to sell via auction and NGN30 billion via non-competitive bidding, bid cover ratio declined to 0.9x (April 2.2x) which drove a rise in average clearing rates to 13.5% (April 12.83%). However, the DMO displayed a stingy streak as it elected to only allot 80%. In summary, despite rhetoric about the need to signal tightening, actual CBN action over the week was to ease on liquidity which had the effect of driving the yield curve lower. |
Re: Bonds Investors Hub by spenca: 12:39pm On May 28, 2018 |
awesomeJ: Euro bonds are priced at 100 while FGN are priced 1000. It is pivotal to state this difference because EURO BOND is governed by global laws FGN bonds too but they have this peculiarity to Nigeria's. Most often you will see bonds quoted based on % premium or discount. The idea is to learn here, no aggression no antagonism. 2 Likes |
Re: Bonds Investors Hub by awesomeJ(m): 2:06pm On May 28, 2018 |
spenca: I didn't argue about the price of the FGN BOND. My post Wash n response to the person who said bonds are "Bonds are units in 1000". That's obviously not always true. The guy who made the first reference to the price too. He thinks the fact that some bonds trade at 1000, changes anything. That's not the case. The snapshot below shows FGN bonds are in 1000 but the state and other bonds are in 100. We shouldn't always be quick to argue on things we're yet to make findings on. I say again that there are several bonds with a 100 face value per unit. 3 Likes
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Re: Bonds Investors Hub by spenca: 3:16pm On May 28, 2018 |
awesomeJ: Nice one, thanks for the knowledge sharing 2 Likes |
Re: Bonds Investors Hub by Gavrelino123: 10:24pm On May 28, 2018 |
beyolah: My findings on Federal Government Bonds. I was at GTBANK head office today... The elucidations below are my fact-findings 1.,The 50Million stipulated by DMO on Federal government bonds is for those who want to bid their own rates. 2.,Can one get secondary market tenor..? Yes you can,but you will have to go with the Bank rates. The bank purchases in bulk and sells in bits to retail susribers. Hence,profit orientation. 3.,What is the minimum amount one can suscribe on? Minimum of 10k and it varies on units,but some banks will peg their minimum as 10k,50k,100k, 500k,or,1m in variant of the bank. 4.,Can one liquiate federal bonds..? Yes you can,but its not as liquid as TB.... It's a capital market investment,hence,it has to stay for a particular period of time before it can be termed liquid. Note; Banks are more rigid when selling Bond than TB....Liquidation make take forever depending on the demands. She evidently,showed me some treated transactions that came from branches. I'm open to further questions.. 12 Likes |
Re: Bonds Investors Hub by Gavrelino123: 10:28pm On May 28, 2018 |
awesomeJ:My findings on Federal Government Bonds. I was at GTBANK head office today... The elucidations below are my fact-findings 1.,The 50Million stipulated by DMO on Federal government bonds is for those who want to bid their own rates. 2.,Can one get secondary market tenor..? Yes you can,but you will have to go with the Bank rates. The bank purchases in bulk and sells in bits to retail susribers. Hence,profit orientation. 3.,What is the minimum amount one can suscribe on? Minimum of 10k and it varies on units,but some banks will peg their minimum as 10k,50k,100k, 500k,or,1m in variant of the bank. 4.,Can one liquiate federal bonds..? Yes you can,but its not as liquid as TB.... It's a capital market investment,hence,it has to stay for a particular period of time before it can be termed liquid. Note; Banks are more rigid when selling Bond than TB....Liquidation make take forever depending on the demands. She evidently,showed me some treated transactions that came from branches. I'm open to further questions.. 7 Likes |
Re: Bonds Investors Hub by awesomeJ(m): 10:45pm On May 28, 2018 |
Gavrelino123: Thanks sir. So if I have a GTB account, and I want to buy tomorrow, what's their minimum, could I get offers from them tomorrow or do I have to wait for the next auction. thanks again for the efforts. 3 Likes |
Re: Bonds Investors Hub by Gavrelino123: 10:57pm On May 28, 2018 |
awesomeJ:Minimum of 10k.........Yes you can tomorrow, just visit your branch or email your account officer...they will tell you what is available @ the moment.. For proper effectiveness and professionalism,its better transact with head office...! I went straigh to head office,because i expected cunning response from my account officer. 3 Likes |
Re: Bonds Investors Hub by wura2020: 3:12am On May 29, 2018 |
My bond matures on 31st May,2018. Do I have to fill a form to claim my principal or it will just drop into my account? Will I be paid the half yearly interest along with the principal or only the principal? 1 Like |
Re: Bonds Investors Hub by feeddhung: 4:04am On May 29, 2018 |
Awesome ideas guys. Please what is the current rates for FGN bonds vs TB which i did over 7m with GTB @ 10% for 90days. Does FGN Bond give me better yield than what TB offered me? 1 Like |
Re: Bonds Investors Hub by C4Ltd: 7:15am On May 29, 2018 |
Gavrelino123: can gtb be said to be the best for bonds same way as stanbic/ fbn were for Tbills? GTB usually has one branch, in such cases would it be okay to deal there |
Re: Bonds Investors Hub by awesomeJ(m): 10:00am On May 29, 2018 |
Gavrelino123:Thank you so much Sir. God bless you. 2 Likes |
Re: Bonds Investors Hub by awesomeJ(m): 10:01am On May 29, 2018 |
wura2020:No, you don't have to fill any form. Your funds will automatically hit your account. You will get the last interest payment alongside your principal on maturity date. Meanwhile, could you please share with us things such as When you bought, the bank you bought through, your coupon rate, the tenor, and how the interest payments have been over the years. Those of us who don't yet have the practical experience would love to learn from yours. |
Re: Bonds Investors Hub by awesomeJ(m): 10:03am On May 29, 2018 |
C4Ltd:We'll only get to know as more people share experience. |
Re: Bonds Investors Hub by wura2020: 10:19am On May 29, 2018 |
I bought it 5 years ago at the primary issue. That time issuance was under CBN. It was advertised in the newspapers and you are advised to collect application forms from any bank, stock broker or any investment coy like Vetiva. After filling the form, you submit the apllication form to your bank. You state the amount you want to invest and the interest you expect . After auction, the interest rate that wins the bid will be allocated bond. The interest on the bond is payable twice yearly unfailingly into your account by Federal Government of Nigeria, through the Debt Management Office. 3 Likes 1 Share |
Re: Bonds Investors Hub by Gavrelino123: 10:26am On May 29, 2018 |
awesomeJ:You are welcome sir....God bless you too. |
Re: Bonds Investors Hub by awesomeJ(m): 1:26pm On May 29, 2018 |
wura2020:Thank you so much. 2 Likes |
Re: Bonds Investors Hub by opomulero(m): 4:23pm On May 29, 2018 |
mcci: To my own understanding, he wont get 10M he will get 9M. Reason: U used 9m to buy 100,000 units while another person had bought the same 100,000 units for 10m. Now assuming both of u have 10m , u dt bought at 9m is at an advantage cos u still av 1m to use for urself but u will get back ur 9m at maturity. Its just that both of u have 100k units which have different naira values. If there is any other opinion contrary to this abeg tell me o, we are here to learn 1 Like |
Re: Bonds Investors Hub by spenca: 7:47pm On May 29, 2018 |
opomulero: He gets the the face value of the bond at maturity regardless of what he paid for it . In the instance above , the investor bought the bond at a discount hence he will still get the face value of the bond which is 10m. Which increases his yield. Take for instance On Monday i sold at T-bill of face value of 47m at a discounted price of 45m+ plus does that mean the buyer will not get 47m at maturity of the Tbill? 2 Likes |
Re: Bonds Investors Hub by awesomeJ(m): 8:40pm On May 29, 2018 |
opomulero:That's not how bonds work. You should know that 2 things remain constant throughout the lifetime of a bond: 1. The face value per unit; 2. The coupon rate. So as long as you have 100,000 units of a bond with a face value of say 100, and a coupon rate of say 15%, you will get interest of 1.5m annually throughout the lifetime of the bond, and you will get 10m on maturity regardless of the price you bought at. Think of it this way, someone promised to buy one concrete block for 1000 in 5 years' time. As long as you can get 10,000 units of those blocks (at whatever price) you will be getting 10m off the sales. The implication of someone buying for 9m and getting 10m maturity is that his yield is higher (actually more than 16.7%). The capital gains forms part of the yield. I didn't include that earlier. Yield to maturity, and accrued interest are two major factors that determine the price of a bond. Some say bonds calculations are clumsy, I say they aren't. We've just not gotten used to them enough yet. 2 Likes |
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