Nakedman:
Todays Auction

That's good

Nakedman:
Todays Auction

1 year: 20%! Father lord!

Meanwhile UK people see 6% and are jumping up and down as if they won the lottery.

This life sef.

Tinyemeka:


1 year: 20%! Father lord!

Meanwhile UK people see 6% and are jumping up and down as if they won the lottery.

This life sef.

Same way they complain bitterly about an inflation rate of 3.4% while Nigerians embrace 30%.

alezzy13:


That's great.

GTB anyone? 🙏

Eventually was not debited yesterday. Apparently GT was not successful. DAMMIT!! 🥺🥺

alezzy13:


Eventually was not debited yesterday. Apparently GT was not successful. DAMMIT!! 🥺🥺

Was not debited yesterday? You were meant to be debited when you submitted the bid. Or you meant not credited.

alezzy13:


Eventually was not debited yesterday. Apparently GT was not successful. DAMMIT!! 🥺🥺

Wait till Monday and see

Nakedman:
Todays Auction

You dont mean it? Damnit

Itsrm:


Was not debited yesterday? You were meant to be debited when you submitted the bid. Or you meant not credited.

Apparently banks have different methods; in the case of GTB they debit you only if the bid is successful, (ie amount bidded is removed less the interest) otherwise, the money is untouched.

Odunharry:

Wait till Monday and see

🙏🙏

alezzy13:


Eventually was not debited yesterday. Apparently GT was not successful. DAMMIT!! 🥺🥺

Same with Zenith Bank, no debit until now which strongly suggest a no or failed bid.

awesomeJ:


The point is comparing the returns between holding idle dollars for speculative purposes for 7 years versus holding naira assets in thesame period.

Also 20% per annum yield on naira assets isn't that far off. Tbill yields through2019 we're at about 22%, commercial papers, bonds stocks etc are other options TRANSCORP did close to 1000%
last year alone, so 20% is actually conservative.

I don't see this as an argument to be had. It's not a direct comparison.

In investing, I first of all pick a strong market before then seeking strong players. The point being missed is that the continued and predictable devaluation of the naira over decades has already gives folks invested in strong currencies a headstart.

Very few investors outperform the index they are invested in. I'm not cherry picking stocks as I can walk into any market and pick a stock that has done 10x even when the market is languishing. The comparison shd be- would 1 million invested in Nigerian stocks via an index (if it exists) in say 2017 have outperformed same amount invested in the S&P or global index in 2017 and left till date?

Foodempire:


Thanks, funds have been returned to mmf as the waiting game already caused me a huge loss. I just don't like the back n forth of moving money. I also think that there should be a way fbnquest can bid for me without pulling out funds from my mmf portfolio to my saving account first?, has anyone ever done this before? Like giving instructions to move funds from your mmf for treasury's bill primary auctions.

Hi. I looked up the FSDH ASSET MANAGEMENT, I noticed that Coral Balanced Funds is @ 27+%, which is higher than TB rate. I want to understand why it's not a better option to invest in it.

Ive read through all their products and it seems you can easily withdraw your funds (within 48hrs), so I'm trying to understand why it's not a better alternative...

alezzy13:


Yeah. Even me I don dey salivate for the 20% + returns, until I was informed it might not hold. 🥺

Hi. I looked up the FSDH ASSET MANAGEMENT, I noticed that Coral Balanced Funds is @ 27+%, which is higher than TB rate. I want to understand why it's not a better option to invest in it.

Ive read through all their products and it seems you can easily withdraw your funds (within 48hrs), so I'm trying to understand why it's not a better alternative...

Care to explain pls?

Tinyemeka:


1 year: 20%! Father lord!

Meanwhile UK people see 6% and are jumping up and down as if they won the lottery.

This life sef.

Hehe... also bring in how much interest people in Argentina are 'enjoying'. Mentioning interest rate without inflation is moot.

Using your example, someone in the UK who choses to invest today at 6% rather than spend should in a years time be able to purchase same item they were looking to buy today with some change to spare. This is because their inflation is below that rate and falling.

Same person in Nigeria who choses to invest at 20% may be unable to purchase in 1 yr what he/she was looking to buy today. This is because our inflation is abt 30% and rising. The interest becomes positive if the CBN can get it above inflation or get inflation down.

Overall, we should rather be worried our interest rate is running that high when that of every sensible economy is at least half. The CBN is not sharing 'enjoyment'.

BTW, why has CBN not mandated banks to raise interest rate on savings account moreso with the recent rise?

Banks have swiftly raised interest on their loan offerings. The huge spread between CBN interest from TBs and customer saving rates offers an economic blackhole for these institutions to make lots of money without any additional benefit or productivity to the economy.

Reminds me of the UK parliament recently querrying bank bosses for not raising their savings rates for customers fast enough in line with the Bank of England rate hike but rather keeping the profits to themselves. Better savings rates would encourage saving and hopefully put downward pressure on inflation

Vickyace:
Please can someone help with the calculation if I winvest 1 million in treasury bills either for 6 months or a year. Please it is urgent. I need help.Thanks

Amount = Principal x Interest Rate (percentage) x Time (in years) / 100

That is the formula you require. The Principal is the amount you want to invest. The rate is the rate that you are seeing. The time is either 0.5 years (6 months) or 1 year or any other length in years.

vanvickie:



Hi. I looked up the FSDH ASSET MANAGEMENT, I noticed that Coral Balanced Funds is @ 27+%, which is higher than TB rate. I want to understand why it's not a better option to invest in it.

Ive read through all their products and it seems you can easily withdraw your funds (within 48hrs), so I'm trying to understand why it's not a better alternative...

Care to explain pls?

I've not taken my time to look at this coral balanced fund but my guess is that it's exposed to the stock market.

So find out what the underlying assets are. If my suspicion is right, be rest assured that the 27% can also be a negative figure tomorrow or it can go as high as 60%.

Nothing is cast in stone.

jedisco:
BTW, why has CBN not mandated banks to raise interest rate on savings account moreso with the recent rise?

Banks have swiftly raised interest on their loan offerings. The huge spread between CBN interest from TBs and customer saving rates offers an economic blackhole for these institutions to make lots of money without any additional benefit or productivity to the economy.

Reminds me of the UK parliament recently querrying bank bosses for not raising their savings rates for customers fast enough in line with the Bank of England rate hike but rather keeping the profits to themselves. Better savings rates would encourage saving and hopefully put downward pressure on inflation

Those who think banks will have any significant reduction in profit this year will be shocked.

Those banks have perfected the art of making money.

alezzy13:


Apparently banks have different methods; in the case of GTB they debit you only if the bid is successful, (ie amount bidded is removed less the interest) otherwise, the money is untouched.

Interesting.

jedisco:


I don't see this as an argument to be had. It's not a direct comparison.

In investing, I first of all pick a strong market before then seeking strong players. The point being missed is that the continued and predictable devaluation of the naira over decades has already gives folks invested in strong currencies a headstart.

Very few investors outperform the index they are invested in. I'm not cherry picking stocks as I can walk into any market and pick a stock that has done 10x even when the market is languishing. The comparison shd be- would 1 million invested in Nigerian stocks via an index (if it exists) in say 2017 have outperformed same amount invested in the S&P or global index in 2017 and left till date?

You still miss the point.

You're bringing up USD investment vs naira investment.

Nobody is talking about that.

What we're saying is investing in naira assets vs HOLDING USD purely for speculation.

Don't mix it up

Itsrm:


I've not taken my time to look at this coral balanced fund but my guess is that it's exposed to the stock market.

So find out what the underlying assets are. If my suspicion is right, be rest assured that the 27% can also be a negative figure tomorrow or it can go as high as 60%.

Nothing is cast in stone.

This is the accurate explanation. Balanced often mean a balance of debt and equity instruments, since equities are at +36% YTD, and debts are over 20%, the 27% is in line.

Itsrm:


Those who think banks will have any significant reduction in profit this year will be shocked.

Those banks have perfected the art of making money.

In 2023, banks booked just #440 gains on a dollar (906-466) and they made that much.
This year, they have #700 realized gains (1606-906) cos when the CBN forced them to sell in February, they mostly sold above 1600.

Then add +25% gains in interest income from lending, and another +70% gains in interest income from securities.

I expect most tier 1 banks to gross over 3trn this year, and net over 1 trn.

awesomeJ:


This is the accurate explanation. Balanced often mean a balance of debt and equity instruments, since equities are at +36% YTD, and debts are over 20%, the 27% is in line.

I thought so. Also, like I noted, the rate is a moving average. Can be positive today and negative tomorrow(saw this happen in 2020)

Not seen any fund that compares to the comfort of that "risk free" 25% from TB(with interest reinvested)

Itsrm:


I thought so. Also, like I noted, the rate is a moving average. Can be positive today and negative tomorrow(saw this happen in 2020)

Not seen any fund that compares to the comfort of that "risk free" 25% from TB(with interest reinvested)

Very correct. It can easily do -10%.

It was 160% last month or thereabout. It's risky, like equity fund. It's combo of mmf and equity, hence the fund name Balanced. But that 'balance' sometimes is not 'balancing'. Better do mmf or tbills if your risk appetite is low

vanvickie:



Hi. I looked up the FSDH ASSET MANAGEMENT, I noticed that Coral Balanced Funds is @ 27+%, which is higher than TB rate. I want to understand why it's not a better option to invest in it.

Ive read through all their products and it seems you can easily withdraw your funds (within 48hrs), so I'm trying to understand why it's not a better alternative...

vanvickie:



Hi. I looked up the FSDH ASSET MANAGEMENT, I noticed that Coral Balanced Funds is @ 27+%, which is higher than TB rate. I want to understand why it's not a better option to invest in it.

Ive read through all their products and it seems you can easily withdraw your funds (within 48hrs), so I'm trying to understand why it's not a better alternative...

Care to explain pls?

@vanvickie please note mutual funds are in three investment class - Low risk ie MMF, Medium risk e.g Fixed income fund and High risk example is Balance or equity funds.
Each of this funds performs based on the underlying assets. All of them are good investment depending on your risk tolerance level.

MMF the least risky has Tbills and CPs as the underlying assets with the 90 days Tbills rates as the bench market.
Fixed income has what MMF have plus the FGN BONDS as the underlying asset. The rate here is relatively stable compare to MMF that rates are valued daily.

Balance fund like the example you observed is under the high risk with the underlying assets having a mixture of debt and equities and most times plus some real estate assets.
A major characteristics of the this type of mutual fund is that it's very volatile both the capital and interest can be lost, nothing is guaranteed hence it follow the basic principle of the higher the risk the the higher the returns.
Currently Balance and equity funds are doing well because the stock market is relatively doing well. If the market starts to perform otherwise over some certain period, the returns will drop.

As earlier noted, non of the funds are better option than the other your risk tolerance couple with some other factors will determine the one you should go for.
Don't forget: THE RETURN OF INVESTMENT IS TO BE CONSIDERED FIRST BEFORE THE RETURN ON INVESTMENT.

emmasoft:


@vanvickie please note mutual funds are in three investment class - Low risk ie MMF, Medium risk e.g Fixed income fund and High risk example is Balance or equity funds.
Each of this funds performs based on the underlying assets. All of them are good investment depending on your risk tolerance level.

MMF the least risky has Tbills and CPs as the underlying assets with the 90 days Tbills rates as the bench market.
Fixed income has what MMF have plus the FGN BONDS as the underlying asset. The rate here is relatively stable compare to MMF that rates are valued daily.

Balance fund like the example you observed is under the high risk with the underlying assets having a mixture of debt and equities and most times plus some real estate assets.
A major characteristics of the this type of mutual fund is that it's very volatile both the capital and interest can be lost, nothing is guaranteed hence it follow the basic principle of the higher the risk the the higher the returns.
Currently Balance and equity funds are doing well because the stock market is relatively doing well. If the market starts to perform otherwise over some certain period, the returns will drop.

As earlier noted, non of the funds are better option than the other your risk tolerance couple with some other factors will determine the one you should go for.
Don't forget: THE RETURN OF INVESTMENT IS TO BE CONSIDERED FIRST BEFORE THE RETURN ON INVESTMENT.

For those other funds there is more to them than can be understood. A number of times I tried it I regretted my decision.

hias2012:

For those other funds there is more to them than can be understood. A number of times I tried it I regretted my decision.

That is why it's always recommended that all prospective investors should do their DD before any form of investment and one should not invest in what you don't know how it works otherwise you will not know when to start, stay or move out and in most cases fingers get burnt.

Let not returns be the first motivation for investing but the safety of your capital.

emmasoft:


That is why it's always recommended that all prospective investors should do their DD before any form of investment and one should not invest in what you don't know how it works otherwise you will not know when to start, stay or move out and in most cases fingers get burnt.

Let not returns be the first motivation for investing but the safety of your capital.

If safety of capital is your motivation for investing, why not just keep your money in the bank? 🤔

In-market rate is now #950 / 1usd

Dollar will likely settled at 700 by June

oluayebenz:
In-market rate is now #950 / 1usd

Dollar will likely settled at 700 by June

I would say the CBN should pause at 900 to 1000 levels and start building reserves.
They've done a lot of work regarding boosting supply by way of crashing unnecessary demand and hoarding.

They should now complement it with reforms that significantly lessen the burden for folks that genuinely need FX. I should not be waiting for weeks to get my forms A/M treated, I shouldn't spend more than an hour to process my BTA/PTA etc.

Then while these hoarders continue flooding the market, they should mop up and target a $40bn reserves level in a few months.

oluayebenz:
In-market rate is now #950 / 1usd

Dollar will likely settled at 700 by June

Should take it back to less than 5h