Asset-Backed Commercial Paper
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. 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. 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.Commercial paper is a money-market security issued (sold) by large corporations to obtain funds to meet short-term debt obligations (for example, payroll), and is backed only by an issuing bank or company promise to pay the face amount on the maturity date specified on the note.
Commercial paper is a short-term debt security issued by financial companies and large corporations.
Something like a promissory note or an IOU for the company needing a short-term loan. According to "Investopedia"(), the Commercial paper is unsecured, meaning buyers have no claim on a company’s assets if the company fails to pay up at maturity.
Start studying Chapter 2. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Search. A municipal bond is a debt obligation issued by the Federal Government.
Commercial paper is a short-term security issued by _____ to raise funds. the Federal Reserve. Commercial paper is a short-term security that is issued in the form of an unsecured promissory bearer note. It is due for a specified amount and matures on a specific day. The tenors of commercial paper range from one to days.
Definition of commercial paper: An unsecured obligation issued by a corporation or bank to finance its short-term credit needs, such as accounts. Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories, and meeting short-term liabilities.