Q: What are the Associated Risks in Investing in FGN Bonds?
Warren Oluwasanya
Last Update setahun yang lalu
The FGN bond is a risk-free investment because it is backed by the full faith and credit of the Federal Government of Nigeria and the risk of default is zero. Principals and returns are guaranteed. However, there could be a risk of losing value if you decide to sell before maturity given the prevalent possible risks of liquidity, inflation, credit-spread and re-investment amongst others.