The Nigerian Stock Exchange (NSE) is set to organise a fixed income workshop on March 4, 2019, in Lagos.
The workshop is aimed to improve the capacity of its members and enhance investors’ participation in the Fixed Income Market.
It will bring together about 200 stockbrokers, dealing members and other key capital market stakeholders to explore opportunities available in the fixed income market, as well as address the concerns and build the capacity of our members interested in trading fixed income on the Exchange.
Fixed Income Market is a platform that allows debt markets participants to trade NSE listed debt instrument issued by the Federal Government, State Governments or Corporations on a transparent order book with firm orders.
The objective of Fixed Income Market is to provide liquidity and transparency through an order book with firm orders, pre and post-trade reporting, clearing and settlement solutions. The NSE said that all fixed income securities, with the exception of zero-coupon bonds provide some form of regular interest payments to investors, saying that this makes the fixed income market especially attractive to investors whose main investment goal is providing themselves with a steady income.
Financial analysts said that there are huge opportunities in the Nigerian fixed income securities market for investors to create wealth, saying that investment in fixed income securities presents an opportunity for investors with a preference for low risk to generate regular income and reduce the volatility of the return on their investment portfolio.
According to them, fixed income instruments are used by governments and corporate organisations to borrow money from the investing public, to finance their activities either on a short-term or long-term basis. The issuers are the borrowers while the investors are the lenders.
“The issuers of the debt instruments promise to pay interest to the investors on a predetermined basis until the maturity date. In most cases, the issuer pays the principal amount to the investor on the maturity date.
“The price of a traded fixed income instrument may appreciate or depreciate between the issue date and the maturity date but the price moves to the par value on the maturity date.”