I have moved all new posts to my own website (https://www.nosaugiagbe.com)

Armed robbery in broad daylight: a government of the people and by the people, literally

In an address by Nigeria’s president, Muhammadu Buhari, on April 13 th , he communicated the decision to extend the lockdown in Lagos, Ogun and the Federal Capital Territory, Abuja, for another period of two weeks, due to the Coronavirus. He also stated that pallative measures had been approved and delivered to 2.6 million households, and that these pallatives will be sustained, with another 1 million households included in the scheme during the next two weeks. As has been seen all over the world, shutdowns such as we currently have in Nigeria come at great costs to the economy, and the President has demonstrated exemplary leadership by extending the lockdown, despite the short-term costs to the economy. Of course, an alternative course of action would result in consequences of catastrophic proportions. Unfortunately, making the right decision does not always result in good outcomes. The tendency for good decisions to lead to terrible outcomes is even greater when the decisio

Investing during a global recession: How to position your finances during and after the COVID-19 crisis

Investing during periods of uncertainty can be more complicated than investing during almost any other phase of the business cycle, particularly from a behavioural / emotional perspective. It can be especially painful for investors who already had a sizable portfolio at the peak of the cycle, and who may have to watch significant and swift declines in their overall portfolio and net worth – at least before the recovery begins. I have received a lot of requests and questions regarding investing during and after the COVID-19 crisis and I will share my thoughts on some of the most common questions below. Before I proceed, I must say that my thoughts here do not constitute financial or investment advice and should not be taken as such. I would also like to add that I started the Smart Investing with Nosa Podcast (available on YouTube , Spoitfy and Apple Podcasts ) at the beginning of 2020 with the goal of simplifying investment principles and bringing practical insights to these

UBA issues a notice of early redemption to investors (bondholders) – a look at callable bonds

On Friday 29 th May, 2020, one of Africa’s biggest banks, United Bank for Africa Plc (UBA), issued a notice of early redemption to investors, exercising the call option attached to the bond at the issue date, thereby informing investors that the bond will be redeemed on 30 th June, 2020. The bond has a principal amount of N30.5 billion (around $84 million, at an exchange rate of N365 to a dollar), coupon or interest rate of 16.45%, and was issued for a 7-year term with a maturity date of December 2021. In this piece, I will explain the meaning of an early bond redemption, the mechanism which makes it possible for a bond issuer to redeem the bonds before the initially agreed redemption date as well as the implication for investors. What is a Bond? A bond is a fixed income instrument representing a loan made by an investor to a borrower (issuer), with the issuer promising, in writing, to make an agreed stream of periodic coupon (interest) payments, as well as to return

Smart Investing with Nosa

Search This Blog