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.

I am glad you read the posts without jumping in with questions. i am sure you found the information you get here is rich enough after you read.

Information is wealth. Knowledge is power.

Are you looking for the best investment plan that would yield great returns? Rosabon Treasury Note - RTN is just for you! With this plan, not only are you availed with highly competitive rates, you also get the opportunity to negotiate your interest rate on all deposits above N1,000,000.

The RTN is a fixed deposit account that guarantees higher interest rate and a flexible investment plan.For more inquiry pls call Elizabeth on;08163151055.ROSABON FINANCIAL SERVICES ...........customers satisfaction our passion .don't miss out

Lalaska:
Result of yesterday's auction below

91 days - 13.55%

182 days - 17.2%

364 days - 18.69%

Notice the increase in rate for 364 days. Now waiting to see what the banks offered their customers. All the best to those of us that sent in their bids.

Above were the stop rates kindly provided, for the auction on 22 March 2017, courtesy of Lalaska .
Can Lalaska and other gurus in the house kindly provide the stop rates for the auction yesterday; 5 April 2017. Knowing the CBN stop rates allow members to critically appraise how mean or otherwise the banks are, with the rates the banks are offering their customers.

Dear Mr Feelamong,

Please see below the outcome of the Treasury Bills Primary Auction which held on April 05, 2017:


PRIMARY MARKET AUCTION RESULT


TENOR (DAYS) 91 182 364

STOP RATE 13.5511% 17.2121% 18.7411%

feelaaG:
Dear Mr Feelamong,

Please see below the outcome of the Treasury Bills Primary Auction which held on April 05, 2017:


PRIMARY MARKET AUCTION RESULT


TENOR (DAYS) 91 182 364

STOP RATE 13.5511% 17.2121% 18.7411%

Many thanks to FeelaaG for the above CBN stop rates. Members should kindly update the house on the different rates the banks are offering to their customers. Some banks have consistently been offering the same rate on the 364 day tenors for the last 3 auctions despite the gradual increase in rate from 18.55% on 15 March, to 18.69% on 22 March and now 18.74% on 5 April 2017

dejiotus:


Many thanks to FeelaaG for the above CBN stop rates. Members should kindly update the house on the different rates the banks are offering to their customers. Some GREEDY banks have consistently been offering the same rate on the 364 day tenors for the last 3 auctions despite the gradual increase in rate from 18.55% on 15 March, to 18.69% on 22 March and now 18.71% on 5 April 2017

Fixed

Rates are still going up, inflation still up there, cost of good not coming down either. Dollar rate still dancing kpangolo
IMF is blabbing devaluation.

[

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

Like Unite4real mentioned, when you're buying a reopening bond, the coupon rate is already fixed, and what you bid for is the yield.

If you buy a reopening bond of 14.5% at a yield of 16% say approximately 1 day after the bond issue, it implies that in a year's time 1 million naira invested at the original price is worth 1,145,000. So if it's like you bought 10,000 units at an original price of 100, with each having a future value of 114.5, now when the yield becomes, 16%, the future value of each bond unit still remains as 114.5 because the coupon rate is fixed, hence for your 1 million to become 1,160,000 after one year, it means it is buying more than 10,000 units of the bond today. the exact number of units would be 10,131 gotten by dividing 1,160,000 by 114.5, and the price you pay for each unit of the bond today would be about 98.71 i.e 1,000,000/10131. There are other factors that determine bond yield/price, a major one is the time interval between when you're buying the bond, and the date of the next coupon payment.

Basically, all you need to determine your returns on a bond investment is the yield. The yield is the same as the coupon rate if it's a new issue, otherwise, the yield is quoted for you to know.
So if you put 14 million into a bond investment with a 14.5% yield, you will get returns of 1,015,000 every six months throughout the lifetime of the bond.

Any alert frm any of the banks?

jp130:
Any alert frm any of the banks?

sterling bank just debited my face value...........i am waiting for the upfront interest so i can calculate the interest rate.

Yes, this evening from stanbic, I think about 18.3 % or so. Please what about the certificate? When can I get it

Thank you so much for a details explanation and kudos my oga Unite4real for taking time give good input however I want to invest in bond for simple reason to have available money every 6 month in the case of FGN BOND or new FGN SAVING BOND which has 4 coupon payment in calendar hence thinking of bond pls note that Treasury bill pay interest upfront but I like something to drop like my oga Unite4real did. I need similar investment vehicle giving return every 6month or quarterly in a calendar year.

What is reopening bond? How do I know I am buying reopening bond.

Thank you

awesomeJ:

Like Unite4real mentioned, when you're buying a reopening bond, the coupon rate is already fixed, and what you bid for is the yield.

If you buy a reopening bond of 14.5% at a yield of 16% say approximately 1 day after the bond issue, it implies that in a year's time 1 million naira invested at the original price is worth 1,145,000. So if it's like you bought 10,000 units at an original price of 100, with each having a future value of 114.5, now when the yield becomes, 16%, the future value of each bond unit still remains as 114.5 because the coupon rate is fixed, hence for your 1 million to become 1,160,000 after one year, it means it is buying more than 10,000 units of the bond today. the exact number of units would be 10,131 gotten by dividing 1,160,000 by 114.5, and the price you pay for each unit of the bond today would be about 98.71 i.e 1,000,000/10131. There are other factors that determine bond yield/price, a major one is the time interval between when you're buying the bond, and the date of the next coupon payment.

Basically, all you need to determine your returns on a bond investment is the yield. The yield is the same as the coupon rate if it's a new issue, otherwise, the yield is quoted for you to know.
So if you put 14 million into a bond investment with a 14.5% yield, you will get returns of 1,015,000 every six months throughout the lifetime of the bond.

Like me also, i am equally waiting for interest. Plz its my first time with them, when shud i expect the upfront interest alert?

zamirikpo:



sterling bank just debited my face value...........i am waiting for the upfront interest so i can calculate the interest rate.

GTB 18.05% FOR 364 DAYS

Let assume I want to invest in fresh 20 year bond offers and invest 14million locked down at 17%. What is my interest or let me say what will be payment every 6month period for the total year 20.

I mean what will be my return every 6month for the said amount at the coupon rate of 17%.

Are you talking about FGN BOND OR NEW FGN SAVING BOND( manage by Debt Management Office)


Thank you

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.

awesomeJ:

Like Unite4real mentioned, when you're buying a reopening bond, the coupon rate is already fixed, and what you bid for is the yield.

If you buy a reopening bond of 14.5% at a yield of 16% say approximately 1 day after the bond issue, it implies that in a year's time 1 million naira invested at the original price is worth 1,145,000. So if it's like you bought 10,000 units at an original price of 100, with each having a future value of 114.5, now when the yield becomes, 16%, the future value of each bond unit still remains as 114.5 because the coupon rate is fixed, hence for your 1 million to become 1,160,000 after one year, it means it is buying more than 10,000 units of the bond today. the exact number of units would be 10,131 gotten by dividing 1,160,000 by 114.5, and the price you pay for each unit of the bond today would be about 98.71 i.e 1,000,000/10131. There are other factors that determine bond yield/price, a major one is the time interval between when you're buying the bond, and the date of the next coupon payment.

Basically, all you need to determine your returns on a bond investment is the yield. The yield is the same as the coupon rate if it's a new issue, otherwise, the yield is quoted for you to know.
So if you put 14 million into a bond investment with a 14.5% yield, you will get returns of 1,015,000 every six months throughout the lifetime of the bond.

Every 6month that is for FGN BOND because it's has coupon payment February and August according to my oga Unite4real.

Thanks

gtbank just debit me for 182days at 17%. Cheers

just2endowed:


was it this this week u were offered such amount?

Sorry for the late reply. It was on the 28th or so.

Got my interest alert today and it was precisely 17% for 182 days. I think it's a great bargain since primary market gives for 17.2%

gentlemate00:


Every 6month that is for FGN BOND because it's has coupon payment February and August according to my oga Unite4real.

Thanks

At a yield of 17%, a 14million naira investment would earn you
NGN1,190,000.00 every six month throughout the lifetime of the bond. Not all bonds have coupon payments made in Feb and August, Unite4real's coupons come in in those months because the bond is a Feb 2020 bond. The new 20 year bond on offer on April 12 is an April 2037 bond, so if you buy this one, your coupon payments would be made every April and October till your grandson gets married.
The FGN savings bond is also issued by the DMO. It's a new bond type they just came up with for whatever reasons. They have structured it to be different from the conventional FGN bond. The basic differences are that it has a shorter tenor of 2&3 years, whereas traditional bonds typically have tenors of 5,10 and 20 years. This short tenor is perhaps the reason for the second difference which is that its coupons are paid every quarter rather that semiannually. One of its pros over the normal bonds is that you don't have to lock down your funds for too long, whereas its cons include the fact that it has a lower yield.
I think if you make up your mind today, you should approach your bank tomorrow so your application would make the upcoming bond auction scheduled for next Wednesday.

jp130:
Like me also, i am equally waiting for interest. Plz its my first time with them, when shud i expect the upfront interest alert?

usually the upfront interest is paid in minutes after they deduct face value. so it should come in anytime from now.

Thank very much and everything noted not sure I can meet up for the April 12 due distance at the moment.Again how do I explain it to my bank the type bond needed. Both are bond from FG.

awesomeJ:

At a yield of 17%, a 14million naira investment would earn you
NGN1,190,000.00 every six month throughout the lifetime of the bond. Not all bonds have coupon payments made in Feb and August, Unite4real's coupons come in in those months because the bond is a Feb 2020 bond. The new 20 year bond on offer on April 12 is an April 2037 bond, so if you buy this one, your coupon payments would be made every April and October till your grandson gets married.
The FGN savings bond is also issued by the DMO. It's a new bond type they just came up with for whatever reasons. They have structured it to be different from the conventional FGN bond. The basic differences are that it has a shorter tenor of 2&3 years, whereas traditional bonds typically have tenors of 5,10 and 20 years. This short tenor is perhaps the reason for the second difference which is that its coupons are paid every quarter rather that semiannually. One of its pros over the normal bonds is that you don't have to lock down your funds for too long, whereas its cons include the fact that it has a lower yield.
I think if you make up your mind today, you should approach your bank tomorrow so your application would make the upcoming bond auction scheduled for next Wednesday.

Stanbic did 17.22% for 182 days. Just got the alert of debit on my account and its the best i ever got.

Do we have a choice with these rip-offs banks ..Gtb gave me 18%for 364 days

When cnb was 18.74%

gentlemate00:

Thank very much and everything noted not sure I can meet up for the April 12 due distance at the moment.Again how do I explain it to my bank the type bond needed. Both are bond from FG.

The next auction after April 12 is May 10, that's if you must buy at the primary market. The available bonds for this quarter are 14.50 FGN JUL 2021, 16.2884 FGN MAR 2027, and FGN APR 2037. You will choose whichever of these 3 you want. They will all be reopening bonds after Apr 12. Each bond is referenced by the names listed above.

gentlemate00:

Thank very much and everything noted not sure I can meet up for the April 12 due distance at the moment.Again how do I explain it to my bank the type bond needed. Both are bond from FG.

I guess awesomeJ has done a lot of explaining on this. However if you were referring to FGN bonds and FGN Savings bond when you requested to know how to explain that to your bank; Do know that commercial banks don't deal on the savings bond, only authorized stockbrokers do. I don't need to flog anything further. You have gotten enough information.

Plz wat rate did dey giv u? I didnt specify duration in my letter n i just got alert of N6681.64 on 200k investment.

zamirikpo:


usually the upfront interest is paid in minutes after they deduct face value. so it should come in anytime from now.

unite4real:


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

Which reputable discount house do you know or buy from

Did anyone bid with First Bank during April 5 TBill Auction? Either 182 or 364 days? I want to know if I should consider using them or move my cash to IBTC against next auction in less than 2 weeks.

Thanks house!

Hi house
Pls this is my first time of doing TBills. I applied on 31st March, 2017 for 91 days at First bank. Was debited 250k. On 6th April, I was credited with 8,232. I don't understand. Please can someone explain what is happening?

Esthametor:
Hi house
Pls this is my first time of doing TBills. I applied on 31st March, 2017 for 91 days at First bank. Was debited 250k. On 6th April, I was credited with 8,232. I don't understand. Please can someone explain what is happening?

Your interest 8,232 is for 3 months.... Multiply it by 4 to get the annualized interest that would be 8232*4=N32,928 now divide that by ur principal amount invested.....32928/250000=0.1317. That is 13.17% ...Hmmmm not bad for 91days ....Very close to the rate of CBN.

Thank you my good people and God bless for taken your time to explain really appreciate will get in touch with my bank. Before May 10


Thanks a lot

unite4real:


I guess gentlemate00 has done a lot of explaining on this. However if you were referring to FGN bonds and FGN Savings bond when you requested to know how to explain that to your bank; Do know that commercial banks don't deal on the savings bond, only authorized stockbrokers do. I don't need to flog anything further. You have gotten enough information.