Write about the secondary markets make financial instruments

Patrick O'Hare Please, can we get some bad economic news? Is that too much to ask?

Write about the secondary markets make financial instruments

This post bridges the information gap by pointing you to best ways you can invest your money and live the life you have always wanted in Nigeria. It is for you to act on this information for a better These bonds have long tenors ranging from 2 to 20 years and are issued by the government to raise money to finance projects such as roads, railways, housing, power, and other infrastructures, etc.

Interest is paid semi-annually until maturity date when the principal is paid.

Your Best Investment Options In Nigeria In | Kobotalk

An investor who does not want to wait till maturity to get his principal sum can sell the investment at the secondary market. If you are interested in investing in FGN Bonds, contact your stockbroker for guidance.

The FGN Savings Bond is a retail investment programme designed to provide Nigerians of all income levels the opportunity of contributing to national development by lending to the government.

It is also intended to make savings attractive to the average Nigerian. FGN Savings Bond tenor ranges from two to three years and primary auctions are conducted on monthly basis. This is tax free and the bonds can be used as collateral to obtain loans from the banks.

There is also a secondary market for this security existing in the money market. The money market comprises of the banks and other financial institutions dealing in short term instruments. Treasury Bills are the most liquid and safest investment instruments you can find in the money market.

They offer guaranteed returned and are risk-free because they are backed by the full guarantee of the Federal Government. How does it work? A Treasury Bill has a face value which is the actual amount the bill is worth at maturity.

However, the bills are usually sold for less than their face value.

write about the secondary markets make financial instruments

The unique thing about TBs is that you earn your interest up front which effectively increases its true yield. The interest you earn on Treasury Bill is called the stop rate and this is determined by the Central Bank of Nigeria on every auction day. The CBN determined the stop rate by selecting the bids that fall below the marginal rate.

Wondering how you can invest? Well this is easy enough. Simply work into your bank and collect the necessary forms. The rest of the whole process is easy and your bank will guide you through the process.

You can also approach your stockbroker. This effectively pushed retail investors away from accessing the TB primary market and leaving that segment to the banks, stock broking houses, other institutional investors and high networth individuals.

But the secondary market still provides a window for retail investors. The secondary market is where investors who bought from the primary auction resell to enhance liquidity.

This segment of the market is now active as it has seen a lot of institutional investors accessing it for liquidity management. So to buy from the secondary market, approach your broker or bank and be guided through the process. Most investment houses will require a NGN, minimum investment on their Treasury Bills products.

Treasury Bills remain an easy way to grow your income. It is a guaranteed way of letting the money you have work for you with peace of mind. Commercial papers are short dated money market instrument issued by corporate organisations to borrow money from the investing community to finance working capital needs.

Commercial paper is more or less a promisory note and approximates Treasury Bill in the sense that: However, commercial papers offer higher returns than Treasury Bills peharps because they are riskier as they are issued by private sector organisations unlike Treasury Bills that are issued by the government and has the full backing of the state.

But commercial papers are also safe because they are issued by companies that have sound credit rating, good reputation, companies that are profitable and have good record of corporate governance practices.

To give an assurance of security, the issuing company may get the bank to guaranty the CP. What this means is that if the issuer fails to honour its promise to pay on due date, the bank pays.5.

Safeguards for protected arrangements. Under section 48P of the Banking Act, the Treasury has the power to make an order restricting the exercise of the bail-in powers in relation to protected.

The Order inserts section 84A into the Banking Act, which provides for two possible approaches to demutualisation for the purposes of exercising the bail-in option in respect of a building society.

The Inter-American Development Bank began supporting income generating nonprofit organizations and cooperatives in through its Small Projects Fund long before there was a field dubbed social enterprises. In , the Social Entrepreneurship Program (SEP), which replaced the Small Projects Fund, was created to promote social equity and the economic development of poor and marginal groups.

As well as being an obsessive collector — and player — of several hundred musical instruments (favourite: the Laotian khaen), Lanier is a Berkeley-based composer, computer scientist, virtual. Latest Martin Tillier Articles Martin Tiller's new must-read column on the markets. Enlightening.

Entertaining. Every day. Only at feelthefish.com There are a number of common terms that need to be defined further in our glossary of terms, including investment, housing, real estate and financial terms.

Glossary of terms | ANZ