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Volatile Nigeria Presents Opportunities For Fixed Income Investors

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As the Nigerian economy faces more volatility occasioned by risk factors from policy normalisation in the developed markets to the potential change of the Central Bank of Nigeria (CBN) governor, investors are expected to see this as opportunity to make more money in fixed income market, according to investment bank, Afrinvest.

“We expect more volatility that should allow investors position and ride the curve to boost income”, said Ike Chioke, group managing director and director of Afrinvest (West Africa).

Analysts at Afrinvest expect yields to maintain an uptrend going towards the presidential elections which will be held in February 2019, with average yields on bonds and Treasury Bills forecasted to top out at the 16.0 percent level.

Overall market yields on Treasury Bills and Bonds are anticipated to moderate by about 2.0 percent each to the range of 13.0-13.5 percent in 2018 with the yield curve transitioning back to steepness.