There are investment opportunities in Eurobonds for investors with dollar liquidity in Nigeria, FSDH Research has said. According to a report on fixed income market investment ideas, the yields on most of the Federal Government of Nigeria’s Eurobonds are now higher than their respective coupon rates, in line with the expectation of FSDH Research.
It said, “The major driver of yields in the global market is the monetary policy tightening in the advanced economies. We expect the Federal Open Market Committee of the US Federal Reserve to increase policy rate by 0.25 per cent when the FOMC meets on December 18-19, 2018.
“FSDH Research’s market intelligence indicates that there may be a second tranche of the FGN Sukuk bond issuance in the market in December 2018. Although we expect the yields on the treasury bills to increase marginally from the current level, we believe the yields are attractive in the short-term at the current levels.”
The FSDH analysts added that “the lull in the equity market presents buy opportunities in a number of companies that have strong fundamentals.” “We recommend investment in the equity market for investors who have a medium-to-long-term investment plan,” they added.