MarketWatch

[knightofdelta]

Originally Posted by pegheneji

That is exactly the annoying advise I get from my contact person of the new 'reputable' stockbrocking firm I moved to. It got to the extent that he said I just have a lot of money idle without using it and advise I should then put the money in one of their fixed package, I told him that I am never in a rush to buy and that I watch the market daily to take any oppotunity which will elude me also if I fixed the income. I have since bought and is currently advising that I have not traded of recent thinking I should sell some stocks where I think I have made some profit to buy new ones and that GTB for example is giving massive bonus and I should take possition, I told him that I go through d portfolio again and sell if neccessary.

He is looking for trade commissions...

[goldsun]

Good day everyone, pls how does rating agency earn their money

[overload]

Originally Posted by goldsun

Good day everyone, pls how does rating agency earn their money

Exactly the same way Research coys earn theirs.. Actually Rating agencies earn monies when they are approached by coys that want to assess funds from the public.

I know that for a coy bonds issuance it must be rated by a rating agency and as such they pay these ratings agencty to do just that

U can guess how the coy will be rated after making payments

[knightofdelta]

Originally Posted by overload

Exactly the same way Research coys earn theirs.. Actually Rating agencies earn monies when they are approached by coys that want to assess funds from the public.

I know that for a coy bonds issuance it must be rated by a rating agency and as such they pay these ratings agencty to do just that

U can guess how the coy will be rated after making payments

Ask C&I Leasing...

[overload]

seems like the rally is gradually creeping on my portfolio..

now is the time to stay glued and reset my exit bus stops

pls no more distractions with the corruption in naija and the inept leadership around

[goldsun]

Originally Posted by overload

Exactly the same way Research coys earn theirs.. Actually Rating agencies earn monies when they are approached by coys that want to assess funds from the public.

I know that for a coy bonds issuance it must be rated by a rating agency and as such they pay these ratings agencty to do just that

U can guess how the coy will be rated after making payments

if they are paid to give rating how then can they avoid conflict of interest. Also since different rating agency rate the same sovereign debt does it mean the country pay all of them

[Dicobody]

ALERT: Likely fall in Future Earnings in the Building Material Sub-Sector - Proshare

[knightofdelta]

Originally Posted by goldsun

if they are paid to give rating how then can they avoid conflict of interest. Also since different rating agency rate the same sovereign debt does it mean the country pay all of them

Oga Hispy99, you can like to step in here, since this is your area of specialty.

There is a code of conduct amongst investment specialists such as rating agencies that they are expected to strictly adhere to. Any rating that is favorable and cannot be justified can attract severe sanctions, since investors are probably going to read every rating with a fine toothcomb and a healthy dose of salt.

[netotse]

Originally Posted by knightofdelta

Oga Hispy99, you can like to step in here, since this is your area of specialty.

There is a code of conduct amongst investment specialists such as rating agencies that they are expected to strictly adhere to. Any rating that is favorable and cannot be justified can attract severe sanctions, since investors are probably going to read every rating with a fine toothcomb and a healthy dose of salt.

this article hispy99 posted might add some perspective.

@goldsun
you even commented on it sef.

[hispy99]

Originally Posted by knightofdelta

Oga Hispy99, you can like to step in here, since this is your area of specialty.

There is a code of conduct amongst investment specialists such as rating agencies that they are expected to strictly adhere to. Any rating that is favorable and cannot be justified can attract severe sanctions, since investors are probably going to read every rating with a fine toothcomb and a healthy dose of salt.

dis no be my area of specialty o. Yes, you right, all ratings must be supported by analysis. However, that still does not remove the conflict of interest. As you know from valuation, you can come up with different valuations for a company and come up with a reasonable defense for each scenario.

[hispy99]

Originally Posted by goldsun

if they are paid to give rating how then can they avoid conflict of interest. Also since different rating agency rate the same sovereign debt does it mean the country pay all of them

There is less of a conflict in sovereign ratings compared to company ratings. I doubt if most developed countries pay for sovereign ratings (a country like Nigeria that wants to borrow may need to pay).

[hispy99]

External Investors Set to Stake $6.2bn on Stock Market, Articles | THISDAY LIVE

[overload]

Originally Posted by hispy99

There is less of a conflict in sovereign ratings compared to company ratings. I doubt if most developed countries pay for sovereign ratings (a country like Nigeria that wants to borrow may need to pay).

I have got a couple of friends that work in ratings coy...one in naija and two abroad. If they tell you what happens there you go weak.

Most times coy in search of loans, or abt to issue bonds go out to seek their services and they must pay for this. All the ratings coy have to do is just to highlight the good part and try to justify everything they are doing..most at times a lot of assumptions are made.

that is why they always issue that 'funny caveat' at the end of every rating!

[Salida]

Originally Posted by horlads

Bros, hold drink small patience. She's not playing to the gallery. What she did was to make the announcement. they will still have to gazette it and set a cut-off date. Until then we will keep paying the fees....

Sir Horlads will surely let us know when the gazette is in place as hin dey very close to Oscar.*wink*

[waaan5]

Originally Posted by overload

I have got a couple of friends that work in ratings coy...one in naija and two abroad. If they tell you what happens there you go weak.

Most times coy in search of loans, or abt to issue bonds go out to seek their services and they must pay for this. All the ratings coy have to do is just to highlight the good part and try to justify everything they are doing..most at times a lot of assumptions are made.

that is why they always issue that 'funny caveat' at the end of every rating!

True. A lot of the ratings (be they sovereign or company) are 'influenced'. And the rating agencies themselves sometimes acknowledge this.

[Salida]

Originally Posted by emmanuel ewumi

I don't really support the bail out. We should all take responsibility for our stupidity and smartness.

Originally Posted by overload

imagine what would have happened if the US govt did not bail out Bank of America and AIG!

At times we need to take the lesser evil!

Originally Posted by emmanuel ewumi

Thank God Sanusi, did not allow our banks to get to this level.

Stockbrokers took speculative positions and they should carry there crosses. I made small money speculating in stocks, i also lost money speculating. But I am out of debt, because i took a risk that will not have adverse effect on my networth.

Imagine Ololo owing almost 90 billion naira, what assets or businesses apart from his stocks that will pay back this debt. I am not sure if his stocks are currently up to 40 billion Naira.

The role of Banks in any capitalistic economy cannot be overemphasized. You can read the book "The Capitalist Conspiracy by Edward Griffin" to get a better picture. Thus, banks needed to be bailed out for obvious reasons. However, we cannot say the same thing for Stockbroking firms. Which country in the world had bailed out their stockbrokers because their markets collapse? In life, you cannot eat your cake and have it!

[horlads]

Originally Posted by Salida

Sir Horlads will surely let us know when the gazette is in place as hin dey very close to Oscar.*wink*

I hear you

[Salida]

Originally Posted by knightofdelta

I had an encounter with a Nigerian Stockbroker yesterday and all I can say is I pity anybody that gives his funds to stockbrokers to manage. They are traders, not investors. They are good at their game but they are bad in the game of fund management.

Navigating the Nigerian Investment Terrain: My Experience with a Nigerian Stockbroker

Originally Posted by pegheneji

That is exactly the annoying advise I get from my contact person of the new 'reputable' stockbrocking firm I moved to. It got to the extent that he said I just have a lot of money idle without using it and advise I should then put the money in one of their fixed package, I told him that I am never in a rush to buy and that I watch the market daily to take any oppotunity which will elude me also if I fixed the income. I have since bought and is currently advising that I have not traded of recent thinking I should sell some stocks where I think I have made some profit to buy new ones and that GTB for example is giving massive bonus and I should take possition, I told him that I go through d portfolio again and sell if neccessary.

Originally Posted by knightofdelta

He is looking for trade commissions...

Sir KOD and Sir Pegheneji, abeg don't mind the brokers. Na wetin dem go chop dem dey look for. As a matter of fact, I have made it clear to my own broker that they should only act on my mandate (I do set very strict price limits and make sure they pay back when they default even if it is 5 kobo) and that I take their Investment advice with a pinch of salt. Met one of the officers physically few weeks back after years of transacting with them electronically and she told me they are sometimes amazed by my stock-picking strategies and that every company I had chosen to invest in turns out to be a portfolio winner.

I told them I am not an expert but that I understand my risk appetite and Investment objective and most importantly do my own home work before commiting my funds. I reminded the officer of the amount invested through them and at their discretion before the crash which ran into Millions and the present market value is less than NGN 500K today. The same stockbroking firms will get a forbearance package and maybe continue the circus in the nearest future (Nigerians sometimes have very short memories)

Gladly today, the portfolio had seen double digit growth after taking other positions based on well informed valuations(the role of SMN in this cannot be overemphasized).

For new Investors on the site, I'll always encourage you to digest the "Books" and " Mistakes you have made while investing on the NSE" sections of the site.

[Salida]

SEC tightens rules as more states set to float bonds

[Salida]

Committee Wants SWF Investment in Nigerian Equities, Articles | THISDAY LIVE