UBA issues a notice of early redemption to investors (bondholders) – a look at callable bonds

On Friday 29th May, 2020, one of Africa’s biggest banks, United Bank for Africa Plc (UBA), issued a notice of early redemption to investors, exercising the call option attached to the bond at the issue date, thereby informing investors that the bond will be redeemed on 30thJune, 2020. The bond […]

The Risk – Return Relationship

This episode discusses the relationship between risk and returns as it relates to investments. It begins by explaining two major components of returns – income (dividend / interest) and capital gains. It then moves on to talk about risk, differentiating systematic risk from unsystematic risk and how both affect returns.Finally, […]

Mutual Funds – An Effective Investment Vehicle / Strategy?

As promised in my last article, Investing during a global recession, today we will explore one of the most important investment vehicles for individuals and institutions – mutual funds. Despite their popularity, mutual funds are often misunderstood or understood only in a limited extent, even by many individuals with mutual […]

Investing during a global recession: How to position your finances during and after the COVID-19 crisis

Investing during periods of uncertainty can be more complicated than investing during almost any other phase of the business cycle, particularly from a behavioural / emotional perspective. It can be especially painful for investors who already had a sizable portfolio at the peak of the cycle, and who may have […]

Preserving vitality and sanity amidst all of the COVID-19 negativity

“Where there’s life, there’s hope”. These words, famously echoed by Stephen Hawking, have never been more apt than in the situation we currently find ourselves in. The world is going through one of the worst crisis in modern history – healthcare, economic, political, etc., all happening at the same time, […]