Author: merchant-bank
-
Cracks in the bond market?
From mid-March through to the beginning of this month, the Federal Government of Nigeria (FGN) bond market was a one-way bet, with yields tightening and prices moving up steadily. Two weeks ago the market cracked, with a brief sell-off, which was a reminder that prices can go down. However, it seems that institutional liquidity is […]
-
FX Policy
Last week we received a lot of questions about the foreign exchange markets. Was the World Bank forcing the Nigeria’s hand in demanding unification of all exchange rates? Why was the parallel market rate not weaker? We do not know the inner workings of the World Bank, nor about its dialogue with Nigeria’s monetary authorities. […]
-
The risk in the duration trade
Talking with clients about our report ‘Navigating the Capital Market; the Investors’ Dilemma’, 14 July 2020 we sometimes hear back that Federal Government of Nigeria bonds are safe while equities are risky. Is this entirely true? Buying long-dated FGN bonds have been profitable this year, but what if interest rates were to rise? Bondholders might […]
-
The commodity price conundrum
Global equity markets have been trending up this month. Markets are showing confidence in a global economic rebound, despite significant setbacks from the rising number of recorded Covid-19 cases in the US, the European Union, India and Brazil. Commodity prices have also been rising, but the behaviour of oil prices and copper prices have been […]
-
A Strong Leader in Unsure Times: Banjo Adegbohungbe
Banjo Adegbohungbe, the Managing Director and CEO of Coronation Merchant Bank, talks to World Finance about the future of the Bank and how the bank is adjusting to the uncertainties presented by the COVID-19 pandemic. A Strong Leader in Unsure Times Nigeria’s economy is set to fall into recession this year. The country’s recovery will […]
-
The mystery of the parallel exchange rate
Until recently, the behaviour of the parallel exchange rate this year has been a mystery. Why did it not respond to pent-up demand for US dollars by adjusting rapidly? The answer is a very weak economy. Learn more below… FX As we wrote last week, there is downward pressure on the Naira in the parallel […]
-
Navigating the Capital Market: The Investors Dilemma
A report on Nigerian Investments For 10 years up until the end of 2019, Nigerian investors and savers had it good. By investing in Nigerian Treasury Bills they could get an inflation-beating return. In 2020 the situation is very different, with yields far below inflation. How should investors and savers react? If risk-free Treasury Bills […]
-
Coronation Research releases report on the Nigerian Investment terrain
Navigating the Capital Market: the Investor’s Dilemma Lagos, Nigeria – July 13, 2020 Coronation Research today published its report on the Nigerian Investment landscape titled ‘Navigating the Capital Market: the Investor’s Dilemma’. The revolutionary report studies the Nigerian investment scene over a 10-year period and finds how Nigerians have managed to preserve their capital over […]
-
The strange absence of the institutional investor
From time to time we notice equity markets taking a pause, trading sideways for a month, before launching again upwards or downwards. One of the ways to measure the health of an equity market is its turnover. The Nigerian equity market’s turnover has been trending downwards recently, prompting the question: “Where is the institutional investor?” […]
-
Doubts over the global recovery
The International Monetary Fund (IMF) recently revised downwards its estimates of global economic activity. The global economy is now forecast to contract by 4.9% this year, with Nigeria due to shrink by 5.4%. Global equity markets were already nervous in June, giving up some recent gains. Yet key commodity markets (e.g. oil and copper) continue […]
