National Bonds - Some problems?
Feb 23rd 2010, 6:59 am
#31
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Re: National Bonds - Some problems?
I guess Meow is saying that they are guaranteed to the extent possible by the royal family. The risk as I see it is how strong that guarantee is.
For example, if I had to decide between a UK sovereign guarantee and a UAE one I know which one I would choose - but of course UK bonds only give you 3% while UAE ones might return 6-7%. You take your choice.
The real issue is the transparency here - no one knows what these bonds are invested in, how much they might yield and what level of capital protection is actually offered other than 'Mr Nahyan says he will give it back'. The problem is that the Nahyans do not answer to anyone so it's difficult to really trust a guarantee by them let alone try and enforce it.
For example, if I had to decide between a UK sovereign guarantee and a UAE one I know which one I would choose - but of course UK bonds only give you 3% while UAE ones might return 6-7%. You take your choice.
The real issue is the transparency here - no one knows what these bonds are invested in, how much they might yield and what level of capital protection is actually offered other than 'Mr Nahyan says he will give it back'. The problem is that the Nahyans do not answer to anyone so it's difficult to really trust a guarantee by them let alone try and enforce it.
Unless you're stating it on the same terms as "the sun will rise tomorrow" I guess that's guaranteed but there's an infinitesimal chance it won't if some galatic apolocypse occurs.
Feb 23rd 2010, 8:18 am
#32
Banned
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Re: National Bonds - Some problems?
I've just checked and both suns seem to be in the right place so no problems tomorrow morning!
Feb 23rd 2010, 8:47 am
#33
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Re: National Bonds - Some problems?
so are we buying bonds or not buying bonds?
my head hurts. ....
my head hurts. ....
Feb 23rd 2010, 11:47 am
#35
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Re: National Bonds - Some problems?
I bought bonds in Gambia last year when the exchange rate was 1 GBP=41GMD and the interest rate was 13%. This years are 10.5% with the same exchange rate. You can either buy T Bills or bank fixed deposits - this has been going on for years and no-one can understand it.
Feb 28th 2010, 4:36 am
#36
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Re: National Bonds - Some problems?
just announced 3.54%, got a text from them 
Feb 28th 2010, 5:32 am
#37
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Re: National Bonds - Some problems?
From their site:-
3.54% profit rate distributed by National Bonds for 2009
16.64% Cumulative profit rate over 3 years
National Bonds Corporation PJSC has announced its 2009 annual profit rate of 3.54 % for its bondholders. The Profit Bonds for 2009 will be issued effective 1st January 2010. Over the last three years, NBC’s cumulative profit rate has been 16.64% which is among the highest payout in comparison to any other similar savings schemes in the UAE.
In a reflection of its solid showing in 2009, National Bonds Corporation PJSC registered a 48 % growth in new savings deposits and saw its customer base increase by 8 % to 560,000 bondholders from over 91 different nationalities. The Mudaraba Fund grew to AED 3.7 billion while new business sales of AED 2.5 billion were achieved. Statistics also show repeat purchases rose by 63 % underlining the loyalty, trust and confidence reposed by customers in National Bonds.
Translation - 50% less than last year....
3.54% profit rate distributed by National Bonds for 2009
16.64% Cumulative profit rate over 3 years
National Bonds Corporation PJSC has announced its 2009 annual profit rate of 3.54 % for its bondholders. The Profit Bonds for 2009 will be issued effective 1st January 2010. Over the last three years, NBC’s cumulative profit rate has been 16.64% which is among the highest payout in comparison to any other similar savings schemes in the UAE.
In a reflection of its solid showing in 2009, National Bonds Corporation PJSC registered a 48 % growth in new savings deposits and saw its customer base increase by 8 % to 560,000 bondholders from over 91 different nationalities. The Mudaraba Fund grew to AED 3.7 billion while new business sales of AED 2.5 billion were achieved. Statistics also show repeat purchases rose by 63 % underlining the loyalty, trust and confidence reposed by customers in National Bonds.
Translation - 50% less than last year....
Feb 28th 2010, 5:48 am
#38
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Re: National Bonds - Some problems?
From their site:-
3.54% profit rate distributed by National Bonds for 2009
16.64% Cumulative profit rate over 3 years
National Bonds Corporation PJSC has announced its 2009 annual profit rate of 3.54 % for its bondholders. The Profit Bonds for 2009 will be issued effective 1st January 2010. Over the last three years, NBC’s cumulative profit rate has been 16.64% which is among the highest payout in comparison to any other similar savings schemes in the UAE.
In a reflection of its solid showing in 2009, National Bonds Corporation PJSC registered a 48 % growth in new savings deposits and saw its customer base increase by 8 % to 560,000 bondholders from over 91 different nationalities. The Mudaraba Fund grew to AED 3.7 billion while new business sales of AED 2.5 billion were achieved. Statistics also show repeat purchases rose by 63 % underlining the loyalty, trust and confidence reposed by customers in National Bonds.
Translation - 50% less than last year....
3.54% profit rate distributed by National Bonds for 2009
16.64% Cumulative profit rate over 3 years
National Bonds Corporation PJSC has announced its 2009 annual profit rate of 3.54 % for its bondholders. The Profit Bonds for 2009 will be issued effective 1st January 2010. Over the last three years, NBC’s cumulative profit rate has been 16.64% which is among the highest payout in comparison to any other similar savings schemes in the UAE.
In a reflection of its solid showing in 2009, National Bonds Corporation PJSC registered a 48 % growth in new savings deposits and saw its customer base increase by 8 % to 560,000 bondholders from over 91 different nationalities. The Mudaraba Fund grew to AED 3.7 billion while new business sales of AED 2.5 billion were achieved. Statistics also show repeat purchases rose by 63 % underlining the loyalty, trust and confidence reposed by customers in National Bonds.
Translation - 50% less than last year....
Feb 28th 2010, 9:05 am
#39
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Re: National Bonds - Some problems?
Of course it's less than last year. Surely no one was expecting more??
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Feb 28th 2010, 9:09 am
#40
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Re: National Bonds - Some problems?
Perhaps you could enlighten us on the identity of the offshore bank currently offering 3% for a savings account. There are some UAE accounts offering that much but most UK or offshore accounts are paying less.
Feb 28th 2010, 9:16 am
#41
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Re: National Bonds - Some problems?
HSBS are offering 2.75%, however minimum balance of GBP 25k
I don't have that in Yen at the moment...
I don't have that in Yen at the moment...
Feb 28th 2010, 9:36 am
#42
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Re: National Bonds - Some problems?
Feb 28th 2010, 9:42 am
#43
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Re: National Bonds - Some problems?
won't affect me for a couple years yet (unless I do win something on these bonds)
Feb 28th 2010, 10:38 am
#44
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Feb 28th 2010, 10:39 am
#45
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