punae:



bros unite4real
I need you to shed more light on the bond....do you purchase through banks as same with tbills cos bank staffs are making things difficult....kindly elaborate on the procedure

unite4real:


you can buy through banks but its less headache when you approach the approved discount houses.

turpsy:
Hello,
I am totally new to TB, but i have some basic ideas about it. I sent a mail to my GTB account manager and she told me that the minimum is 50m, and that i will be informed when the secondary bill is available.

Does it mean I cant buy TB now with less than 50m. and when would GTB offer secondary bill, since i dont have 50m to approach CBN?.

Thanks for your response

OakPearl:


I want to assume the officer you spoke with is not sufficiently informed.
There is a N50m minimum requirement for individual investors ONLY FOR THOSE WISHING TO BID AT THEIR OWN RATES.
With this new rule, what is most advisable is that you decide to go with the banks offering the best rates in either the secondary or primary market. Stanbic IBTC, Fidelity and Sterling Bank I think offer some of the best rates.
My advice is that you exercise patience, do your investigation of the banks, and prepare to bid in the next primary market auction 2 weeks from now as today's auction is almost at hand. This is because secondary market rates are lower than that of primary market rates and so what you buy from the secondary market is actually resold to you by the bank who themselves bought at the primary market.

In summary, you can buy Tbills with less than N50m from the primary market, but not at your bid rate. You would have to submit your bid without a rate in total submission to the bank rate.

Happy investing..

just2endowed:


Nice write up.

I wonder why lalasticala or Seun didnt move this thread to front page. Maybe this would have divert our youth attention away from ponzi scheme

MO

just2endowed:


Nice write up.

I wonder why lalasticala or Seun didnt move this thread to front page. Maybe this would have divert our youth attention away from ponzi scheme

MO

awesomeJ:
I think most banks will yet offer rates that are within 200 basis points of CBN's stop rate. StanbicIBTC and FBN should be among the top 5 offering the most attractive rates. competition will eventually moderate their actions as per ripping off. not just inter bank, but also intra market competition, if they should try ripping off excessively, it won't be long before smart investors start boycotting their offers for other instruments in the market. I think what really poses more threat to money market rates right now is the news of inflation tapering. I think beginning from Q2'17, we could start seeing inflation figures below 17% partly due to the fact that there's already a high Q2'16 base. The new FX policy is also expected to in the least prevent any further worsening in the inflationary trend. I expect the MPC to hold rates in their upcoming meeting this month, but perhaps when they meet in May, they may want to consider a cut, which will signal the beginning of a lower money market rates period. remember this era of high rates has been on for about 9 straight months since June 2016, basically because the CBN was hoping to attract FPIs with it, so by May, they may think that it's time to reconsider the decision since, it's really done nothing but increase the debt service cost of the FG.
Bottom line, whoever has spare cash would be better off doing long-tenor T-bills, or[b] normal FGN bonds[/b] to lock up on these current rates, because rates could start crashing after May's MPC meeting. Let's not let this current sweetness make us forget that we have cycles in this market of ours. Nice night to everyone. God bless.

easyflow:
I was given 16.5% for 105 days today (secondary market). 17% for 175 days. I guess the primary market rates will be quite attractive.

DInkMan:


which bank pls?

easyflow:

Stanbic

just2endowed:


Super idea. Pls put more light on call deposit and how will I instruct my bank

jp130:
Plz r we to expect debit alert frm our banks today?

Houstency:


Depending on the bank, from Thursday afternoon to Monday Evening.

Houstency:


Works similarly like Fixed deposit, the only major difference from FD is that you can withdraw your cash at any time without incurring FD charges for not holding on before end of your FD tenor. Also it's not a tenor-base deposit like FD. Profits on it ain't large, except you place large sums of money on CD(though you get to gain something on your money than leaving it in a savings account with its conditions for making profit).

How?
Simply walk into your bank and ask them you want to place your cash on call deposit ( Normal Fixed deposit paper, you only tick and fill the column for call deposit), and ask them to give you their call deposit rates ( For Stanbic bank, if you are observant enough you may likely see the rates of FD, CD and even Tbills on a T.V screen), it differs based on the amount you want to place on hold.

I can't find my paper that contains FD and CD rates for Stanbic. You could plead with the person in charge to give you a copy(As it ain't allowed for public consumption).

Normal simple interest calculation is used, only note that time is in day(s), over 365days.

Best Regards

gentlemate00:


How can one buy the normal FGN BOND. Thanks

easyflow:
I was given 16.5% for 105 days today (secondary market). 17% for 175 days. I guess the primary market rates will be quite attractive.

dandollar1:
When buying from the secondary market,do they tell you the rate so you could decide if you want it or not?

awesomeJ:

I think Unite4real is in a better position to put you through, because unlike me, he's had an experience with bonds investment.
However let me say the little I know regarding it. The DMO sells the bonds, and you can only deal with them through people they refer to as primary dealer market makers PDMMs which most commercial banks are. So you get the application form from your bank, fill it, submit, and get your account funded to the tune of the investment, because unlike t-bills, you will be debited to the full amount of the investment with no interest payment until after 6 months. To buy from the primary market, you'd have to work with the DMO's bond calendar for the quarter. However if you have enough funds(perhaps up to 100mills) you can buy on any day from brokers in the secondary market. From the current calendar, there'll be bond offers by the DMO on April 12, May 10, and Jun 21. There are 14.5% 5-year, and 16.28% 10-year bonds which are reopening 5,10-year bonds on these dates, however there's a fresh 20-year bond on offer too. For the reopening bonds, the coupons are already fixed at the indicated rates, but happenings at the bond auction determines the yield on the bond, which in effect determines how much you'll pay to buy the bond. Your returns may eventually be higher on lower than the indicated coupon rate, depending on what happens at the auction. However, for the new 20-year bond, it will only be a new issue on April 21, subsequently it becomes a reopening bond. Being a new bond issue, the coupon isn't fixed yet, so happenings at the auction will determine the coupon rate, if you decide to buy this bond, your returns will be the same as the coupon rate. Sorry for the long note. Bonds just tend to not be as simple as T-bills are. The major advantage is that you get to lock down on a high yield for long. Imagine buying a 20-year bond now at 17%, and come 2019, a new CBN Gov who happens to be an ex ECB* manager decides to enforce a single-digit interest rate regime, fixing MPR at 2%, the bond investment you make now would turn out to be one of the best investment decisions you ever make.
*European central bank.

OakPearl:


I want to assume the officer you spoke with is not sufficiently informed.
There is a N50m minimum requirement for individual investors ONLY FOR THOSE WISHING TO BID AT THEIR OWN RATES.
With this new rule, what is most advisable is that you decide to go with the banks offering the best rates in either the secondary or primary market. Stanbic IBTC, Fidelity and Sterling Bank I think offer some of the best rates.
My advice is that you exercise patience, do your investigation of the banks, and prepare to bid in the next primary market auction 2 weeks from now as today's auction is almost at hand. This is because secondary market rates are lower than that of primary market rates and so what you buy from the secondary market is actually resold to you by the bank who themselves bought at the primary market.

In summary, you can buy Tbills with less than N50m from the primary market, but not at your bid rate. You would have to submit your bid without a rate in total submission to the bank rate.

Happy investing..

gentlemate00:
Thank you very much for the details explanation however pls how do one calculate true yield or interest for 5 year lockdown of 14million at 14.5%. Let me also ask the different between FGN Bond have 2 coupon per year while the new FGN saving bond have 4 coupon in a calendar year. I will appreciate the true yield of the invested amount. Thanks

feelaaG:


Just ask head office branches..they understand Tbill there better.

Alternatively go for the Investment Houses/coys..

manlikegb:





Similar to the question asked above by @Uchefrancis16 and answered by @ihedioramma:
Uchefrancis16:
But before that, I have a question I've not seen anything related to on thus thread. Wch is.

Since they said TBills is almost 100% risk free, I noticed that keystone got sold off of recent. What if mid way in, stambic IBTC starts having issues, can I get my Tbills money from FG through another bank or something?

Pls permit my ignorance. I posted this here to aid myself and those who doesn't know what will become of their TBills if the bank invested through starts having issues.


My question is this.... What if mid way through your investment tenure, the Investment Houses/coys starts having issues or worst case scenario close down operations, what happens to your Tbills Investment thru them? How do you get your money back at maturity? Thank you.

cc @feelamong

feelaaG:


You Treasury Bills are warehoused by a Custodian....

so even if a bank or Investment House closes, the custodian would be the party that you will need.

spiceeamiee:
Hello house.. Good morning. I have been following this thread for a while and I have learnt a lot, thanks to all of you. I had some money I kept aside in fixed deposit just before I got married. I told my husband about it once but told him I put in bonds so he will not ask me for it. In December, I terminated the fixed deposit and I was looking to buy a property and start building my house. My sister advised me to start a business but I do not have the entrepreneurial spirit. I did not know what to do with the money until I stumbled upon this page. I read everything I could on NTB and last week, I placed a bid with First bank for 364 days. I was told the rate was 18.2 and I went with it. I just received my upfront interest and now I am going to add my little savings money to it so I can buy the land and when the NTB matures next year, I will use it to start the building. Depending on what I want and if prices of building materials still remain the same, that should be enough to finish the building to a very reasonable extent.

Thank you all for your help.