CHAPTER ONE
1.1 BCKGROUND OF THE STUDY
The bond market constitute a financial market for the issuance of where new debt known as the primary market and the purchase and sale of debt securities referred to as the secondary market. The debt traded is in the form of bonds but it may include notes, bills, and so on. It is essentially meant to provide for long-term funding for public and private expenditures.
The bond markets constitute a part of the credit market, with bank loans constituting the other main component. The global credit market is three times larger in aggregate than the size of the global equity market. Bonds are securities under the Securities and Exchange Act, and highly regulated. Bonds are not usually secured by collateral but they can be secured and are sold in relatively small denominations of around $1,000 to $10,000. Bonds can be held by retail investors.
Some corporate bonds are listed on exchanges but an essential part of the bond market is the government bond market. The bond market can be classified into corporate Government and agency, municipal, mortgage backed, asset-backed, and collaterialized debt obligations and Funding bonds market.
1.2 STATEMENT OF THE PROBLEM
The performance of the bond market is influenced by a number of factors .The bond price is determined by micro factors in the short and long run which include the financial and liquidity position of firm, profit or loss and declared etc. Bonds returns are also influenced by some macroeconomic factors such as stock market regulation, inflation, gross domestic product, exchange rate, tax impose by national government, foreign direct investment, industrial production, interest rate, savings, foreign exchange reserves, money supply, imports &exports and oil prices fluctuation The significant role of capital market is to act as regulator . The bond market constitute a financial market for the issuance of where new debt known as the primary market and the purchase and sale of debt securities referred to as the secondary market. The debt traded is in the form of bonds but it may include notes, bills, and so on. It is essentially meant to provide for long-term funding for public and private expenditures.
The bond markets constitute a part of the credit market, with bank loans constituting the other main component. The global credit market is three times larger in aggregate than the size of the global equity market. Bonds are securities under the Securities and Exchange Act, and highly regulated. Bonds are not usually secured by collateral but they can be secured and are sold in relatively small denominations of around $1,000 to $10,000. Bonds can be held by retail investors.
The problem confronting the research therefore is to proffer an Assessment of economic-variables on the performance of bond market in Nigeria.
1.3 OBJECTIVES OF THE STUDY
To proffer an assessment of economic variables and Bond market
To proffer an Assessment of economic-variables on the performance of bond market in Nigeria
The bond market constitute a financial market for the issuance of where new debt known as the primary market and the purchase and sale of debt securities referred to as the secondary market. The debt traded is in the form of bonds but it may include notes, bills, and so on. It is essentially meant to provide for long-term funding for public and private expenditures.
The bond markets constitute a part of the credit market, with bank loans constituting the other main component. The global credit market is three times larger in aggregate than the size of the global equity market. Bonds are securities under the Securities and Exchange Act, and highly regulated. Bonds are not usually secured by collateral
1.4 RESEARCH QUESTIONS
What is economic variables and bond market
What is the level of impact of economic variable on performance of bond market.
1.5 SIGNIFICANCE OF THE STUDY
The study shall proffer a detail appraisal of the economic variable which impedes on the performance of bond market in Nigeria
It shall also serve as a source of information to investors and managers
1.6 RESEARCH HYPOTHESIS
Ho The impact of economic variables on the performance of bond market in Nigeria is low
Hi The impact of economic variables on the performance of bond market in Nigeria is high
1.7 SCOPE OF THE STUDY
The study focuses on the assessment of economic variables on the performance of bond market in Nigeria.
1.8 LIMITATIONS OF THE STUDY
The study was confronted with some constraint which include geographical factors and logistics
1.9 DEFINITION OF TERMS
BOND DEFINED
The bond market constitute a financial market for the issuance of where new debt known as the primary market and the purchase and sale of debt securities referred to as the secondary market. The debt traded is in the form of bonds but it may include notes, bills, and so on. It is essentially meant to provide for long-term funding for public and private expenditures.
Foreign exchange rate:
foreign exchange rate is the rate at which one currency will be exchanged for another.
Foreign direct investment:
Foreign direct investment is a passive investment in the securities of a different country such as public stocks and bonds.
Inflation: Inflation, an increase in the general level of prices of goods and services.
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