How to invest in Eurobonds and Make Extra Side Income

How to invest in Nigerian #Eurobonds

Although Nigeria’s Eurobonds remain one of the most profitable in the investment world, not many individuals know how to invest in them. The Federal Government and a number of corporate organisations in the country subscribe to Eurobonds and issue them quite often, lending credence to their attractiveness as an investment tool.

Basically, Eurobonds are financial instruments issued by a country or corporate organisation in a currency different from the currency of the issuer. Nigeria typically issues Eurobond instruments denominated in US dollars. There is the sovereign, which is referred to as a government bond, and the corporate bond. Eurobonds operate like fixed #income securities in terms of bond instruments. It has a coupon, an interest rate paid on bonds (which is paid bi-annually), a price at which the bond will be purchased, and also a yield. The price and yield have an inverse relationship meaning that when the price goes up, the yield comes down. When the yield is coming down, the instrument is trading at a premium compared to when it was issued. An investor can buy Eurobonds while the primary auction is ongoing or later, at the secondary market, for those who were unable to participate in the primary auction.: https://afrokonnect.ng/niche-opportun...