The FGN bond's market is remains a strong and liquid market, according to the Director General of the Debt Management Office Mr Abraham Nwankwo. Despite the removal of Nigeria from the JP Morgan bond index, the Bond market still remains strong, a very active secondary market for investors to trade with 13 PMIs and tradable on the NSE through the government stockbroker Stanbic IBTC Stockbrokers.
He explained further that FGN bonds are risk free instruments back by the full faith and credit of the Federal Government and charged on its assets. Though JP Morgan's exit portend a loss of $2 billion for Nigeria, reputational risk and could similarly lead to MSCI Morgan Stanley capital Index exiting. Investor are beginning to gear up for a rally at the equity market post announcement of Ministers and a strategic economic blueprint by President Buhari. The valuations look good and this could be a shopping spree for bargain hunters and bottom fishers.
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