Warning over corporate bond market

"There's a worry that there's no buyers of bonds and that on any given day everyone might want to sell," he said.

The past few months have seen a number of market watchers express concern about the $10tn corporate bond market.

Corporate bonds allow companies to sell their debt to investors, and operate in a similar way to government bonds. 

 

In a speech last week, Mr Gilbert warned of the systemic risk of a run on the corporate bond market and called on the Bank of England and other central banks to act as "buyers of last resort".

Nigeria raises N45bn in 5-20year bond

Nigeria sold 45 billion naira worth of naira-denominated bonds maturing in 2020 and 2034 at an auction on Wednesday, paying higher yields than at its previous auction in August, the Debt Management Office said on Thursday.

 

The amount raised at the auction was short of the 70 billion naira initially proposed by the debt office. Traders said the debt office was constrained by the higher yields that investors demanded and reduced the amount of debt sold.

Investors had asked for yields ranging from 13.5 to 20 percent for the 2020 bond and 14.5 to 20 percent for the 2034 debt, but the debt office decided to cut off the sale at 15.95 and 15.97 percent respectively.

The debt office sold 20 billion naira worth of 2020 debt at 15.95 percent yields, 57 basis points more than 15.38 percent at the last auction in Aug.

Planet Capital leads Fidelity Bank issuance of N30bn bond

Planet Capital Limited, a player in the Nigerian capital market, is leading other capital market operators in the issuance of Fidelity Bank plc N30,000,000,000 Bond. The bond qualifies as a security that Pension Fund Administrators and Trustees can invest in and is also tax exempt, which makes it even more attractive. It will be listed on the Nigerian Stock Exchange (NSE) and freely tradable.