Bond investment

[chokit]

Bonds seems to be religated as a means of investment and something for the retirees.While in actuall fact it is not and virtually every investor should have at least have it to complete thier portfoilo,i read a book that shows how a portfolio should look like;

AGGRESIVE PORTFOLIO

Age 25 to 35 100% equity and 0%bonds

AGE 35 TO 50 90% equity and 10%bonds

Age 50 to 55 75% equity and 35%bonds

Age 55 to 65 50% equity and 50%bonds

Age 65+ 35% equity and 65%bonds.


With this i want members that are full informed to educate us on how to invest in bonds market in nigeria.

[knightofdelta]

Originally Posted by chokit

Bonds seems to be religated as a means of investment and something for the retirees.While in actuall fact it is not and virtually every investor should have at least have it to complete thier portfoilo,i read a book that shows how a portfolio should look like;

AGGRESIVE PORTFOLIO

Age 25 to 35 100% equity and 0%bonds

AGE 35 TO 50 90% equity and 10%bonds

Age 50 to 55 75% equity and 35%bonds

Age 55 to 65 50% equity and 50%bonds

Age 65+ 35% equity and 65%bonds.


With this i want members that are full informed to educate us on how to invest in bonds market in nigeria.

This is really an aggressive portfolio, but I think it should be more flexible depending on the circumstances of the individual. Some people have to be more liquid than others. Investment opportunities are rather limited in Nigeria at the moment because of the level of poverty and small number of people in the middle class who need more diversified exposure.

I know we will get there someday, meanwhile I will try and find out about bonds. The only issue is that mostly mutual funds, foreign portfolio managers and pension funds invest directly in bonds. I am not sure how easy it is going to be for small time investors.

[hispy99]

Originally Posted by knightofdelta

This is really an aggressive portfolio, but I think it should be more flexible depending on the circumstances of the individual. Some people have to be more liquid than others. Investment opportunities are rather limited in Nigeria at the moment because of the level of poverty and small number of people in the middle class who need more diversified exposure.

I know we will get there someday, meanwhile I will try and find out about bonds. The only issue is that mostly mutual funds, foreign portfolio managers and pension funds invest directly in bonds. I am not sure how easy it is going to be for small time investors.

If you can't do bonds, at least you can put your money in fixed deposit.

[nosa2]

I had a mentor who was always telling me that in developed markets you can make more money playing the bond market than the stock market, and unfortunately now that the bond market is about to emerge/explode in this country i no longer have ready access to him to get tutorials, fortunately for me i have you guys who can educate me/us on how bonds are traded thus i believe this thread has become useful. I would love us to have discussions on what to look for in bonds, how, if any, capital appreciation is made, or any good resources one can read (free or paid) etc. Thou i believe banks are really being reckless with all these bond issues, i smell money is about to made and i want the knowledge so i can grab my share.

[knightofdelta]

Originally Posted by nosa2

I had a mentor who was always telling me that in developed markets you can make more money playing the bond market than the stock market, and unfortunately now that the bond market is about to emerge/explode in this country i no longer have ready access to him to get tutorials, fortunately for me i have you guys who can educate me/us on how bonds are traded thus i believe this thread has become useful. I would love us to have discussions on what to look for in bonds, how, if any, capital appreciation is made, or any good resources one can read (free or paid) etc. Thou i believe banks are really being reckless with all these bond issues, i smell money is about to made and i want the knowledge so i can grab my share.

Originally Posted by knightofdelta

This is really an aggressive portfolio, but I think it should be more flexible depending on the circumstances of the individual. Some people have to be more liquid than others. Investment opportunities are rather limited in Nigeria at the moment because of the level of poverty and small number of people in the middle class who need more diversified exposure.

I know we will get there someday, meanwhile I will try and find out about bonds. The only issue is that mostly mutual funds, foreign portfolio managers and pension funds invest directly in bonds. I am not sure how easy it is going to be for small time investors.

It was barely a year ago I made this post. A lot of water has indeed passed under the bridge

[hispy99]

[Bonds as investments are not risk-free

[hispy99]

http://www.proshareng.com/admin/uplo...EC_11_2009.pdf

Bonds Vs Equities

[hispy99]

http://www.proshareng.com/news/singleNews.php?id=8347
UBA Bond Fund pays 15 kobo dividend

[newton]

Originally Posted by hispy99

http://www.proshareng.com/news/singleNews.php?id=8347
UBA Bond Fund pays 15 kobo dividend

Good results i must say, and with Nigeria's sovereign rating still within investment grade i'd suspect increased foreign participation soon, sure its already there indirectly though.

[knightofdelta]

Originally Posted by newton

Good results i must say, and with Nigeria's sovereign rating still within investment grade i'd suspect increased foreign participation soon, sure its already there indirectly though.

Are you sure? Nigeria does not have any foreign denominated bond yet but the current sovereign rating by S&P is "B+" with a stable outlook down from "BB-" due to banking sector problems and fiscal issues. Investment grade would be BBB and above.