Hopefully

Speedyconnect15:
.

Barrytone:
Just did 90 days at 10.6% on the 5th of Jan but I just need to buy a car and wants to terminate, how much am I loosing. Principle was 6.9m at first bank. Thanks

It depends on the face value of your investment. That is, if your upfront interest was reinvested.

Let me assume you were credited with the interest.

Interest credited = 10.6%×6,900,000/364×90= N180,840.66

The bid rate for the tenor (14/04/2019) of your investment at the end of Friday's trading activities was 14.1%. If you decide to terminate tomorrow and we assume it is done at 14.1%, you would have held your bill for 10 days and the would be buyer holds it for the remaining 80 days.

New buyer interest = 14.1%×6,900,000/364×80= N213,824.18

Expected loss=N32,983.52

Please note the above is meant to be indicative. What you lose or gain depends on the face value of your investment (either upfront interest is credited to your account or reinvested), the rate at which the bill is sold, the day you decide to terminate it and whether your bank charges for early termination.

I suppose you should know that the term " FANCY" was figurative?

IAS10:


Why should the pending elections be a factor in his decision to by a car and where did he state that he intends buying a fancy car?


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Speedyconnect15:


This issue is not settled sir. The issue of outcome depending on amount resold is recondite.

You make it seem as if the bank will bring out his 6m and start looking for a buyer of the 6m.

At worst , they can put back in the pool.

At any rate, I am certain he won't lose capital at all given that rates are still the same.

Like I said before it depends on the rate resold by the bank either to themselves (back to the pool) or whoever is interested.

Yes the bank will bring his 6.9 out in the list of what the have to dispose for whoever want to buy. It will only go to the pool if there is no buyer or the rate seem juicy for to buy and resell.

The rate is already shorter than the regular 91 days he bought it.. If you look at the page before the carrying this your message I quoted someone already posted that he was give about 13% for 47day that may be because money is urgently needed.. The buyer was not told rate/tenure the seller initially got it.. It could be higher or lower.

The rate to resell (though within a particular range) is at the banks discretion so the likelihood of quoting 11 or 12% for new buyer instead of the 10.6 he got to make it more attractive to a new buyer is there so also is the likelihood of quoting 9.5-10% for them to gain something off it. Except the same rate is quoted if not, if any of the above happens, he will either loose or gain.


All situations are not the same and that is why I always maintained that it depends on the rate it is resold. I once invested in TB primary market with FBN. Two days to maturity I went and drop a request for it to be terminated at maturity but the person that handles it was not around and my message was not delivered. The Thursday I was to see the proceed in account I didn't so I went to the bank to complain only to be told that it was rolled over. I was furious because apart from the fact that I needed the money at that period, I did was required of me by telling them to terminate it before hand but they failed on their part. So I asked them of what to do next and I was told they will have to resell it and I gave them the go ahead. The next day I saw the alert but the money was short of what was on my proof if it was to be terminated at maturity .. When I enquired, I was told that the rate they sold it was higher that the rate it was rolled over. I took it up by writing firstcontact@firstbanknigeria.com and I was directed to the same branch in kubwa that I did it for resolution . At the end of the day nothing happened all they could do was to pacify me and that was not because they resold it at a higher rate but because I had requested earlier for it to be terminate.

The posted got it at the rate of 10.6% which I am very sure he was told without any option of bargaining /possibility of increasing the rate. The bank is going to sell it at the rate they deem fit. He already entered a contract with terms and conditions. Most times the terms favours the banks more because they say them.. Its only left for you to either accept it or not.

May I also remind you that in every First Bank NTB proof /certificate of investment, it is usually stated that ' In the event that you have to liquidate (this) investment prior to the maturity date indicated (above), a PENAL CHARGE will be applied based on the prevalent market rate'.

After all I have said above, I will conclude by saying that I am not certain if he would loose his capital or not. That would be the prerogative of the bank through which he invested.. That is why I said for any certain statement he should contact his bank.

carik:



Really?
But then, a mail to my account officer with instructions has generated no response

If you want your account officer to be the one begging you, send a mail to their head office. Tell them you wanted to invest in tbills and you sent instructions to your account officer but it seems the guy is clueless.

This was the same thing I did sometime in the past and my account officer became the one that was begging. In fact, he called me on phone with his personal line many times before I listened to him. He was actually shivering.

Grupo:


If you want your account officer to be the one begging you, send a mail to their head office. Tell them you wanted to invest in tbills and you sent instructions to your account officer but it seems the guy is clueless.

This was the same thing I did sometime in the past and my account officer became the one that was begging. In fact, he called me on phone with his personal line many times before I listened to him. He was actually shivering.

Thanks much.

N786.4b T-Bills Mature as Analysts Predict Rise in Rates
**CBN to Auction Fresh N225.5b T-Bills
https://businesspost.ng/2019/01/14/n786-4b-t-bills-mature-as-analysts-predict-rise-in-rates/

In January 2017 I applied for treasury bills at 18% rate Those where the times when treasury bills were juicy
Anyways I'm returning back to the scene after a short heist.
Should be submitting my applicating to GTB today hoping all goes well for this week's bid.

Thanks to all who are contributing to this tread to impact knowledege to the best of their understanding

Good morning, please when do banks submit bids for the secondary market? I thought it was Tue and Thursdays. I purchased airtime on my line this morning and my availabe balance shows that the amount I put down to purchase T.Bills has been deducted.
I did not get any alert informing me of the transaction. I tried calling my account officer, but was told he wasn't on sit. Is it safe to say the transaction has pulled through?

Morning guys,
STANBIC IBTC TBILLS SECONDARY RATES FOR TODAY

Please find below:

12.75 % …… 108 DAYS

14.25 % ……. 38 DAYS

14.25 % …… 360 DAYS

Regards

Sometimes SMS alert does not come through.
You can buy from secondary market anytime you walk into the bank. You get what is available. Only Primary Market are done every forthnight,

Debit does not always mean it went through.
I once filled for primary market. And FBN debited me, but since I did not get alert for upfront interests after a considerable time. I walked into the bank to inquire and I was told my application was late.
So the debit is for next auction. These banks are funny at times.

Floyd45:
Good morning, please when do banks submit bids for the secondary market? I thought it was Tue and Thursdays. I purchased airtime on my line this morning and my availabe balance shows that the amount I put down to purchase T.Bills has been deducted.
I did not get any alert informing me of the transaction. I tried calling my account officer, but was told he wasn't on sit. Is it safe to say the transaction has pulled through?

amjustme2:
Sometimes SMS alert does not come through.
You can buy from secondary market anytime you walk into the bank. You get what is available. Only Primary Market are done every forthnight,

Debit does not always mean it went through.
I was filled for primary market. And FBN debited me, but since I did not get alert for upfront interests after a considerable time. I walked into the bank to inquire and I was told my application was late.
So the debit is for next auction. These banks are funny at times.

Thank you for the detailed explanation. I guess the debit is still for the next auction. Although, I think my interest has already been added.
Thank you

Just left first bank now. Went to fill tb form for primary market against Wednesday's auction. And wanted to know what d banker thinks is suitable for me to fill as my rate. And he was like "am I not going with the bank rate"? I was shocked because I tot its only in secondary market we go with whatever the bank has to offer. So I told him that I will be fine with the bank rate.
Another thing that surprised me is that I was debited immediately after leaving the bank.
My question is " what does he mean by bank rate in a primary market"? And secondly why was I debited today instead of Wednesday.
Please note.... I have been investing in tbills now for 5years. Both primary and secondary. But today I had a new and different experience. I need explanation please.

favoured247:
Just left first bank now. Went to fill tb form for primary market against Wednesday's auction. And wanted to know what d banker thinks is suitable for me to fill as my rate. And he was like "am I not going with the bank rate"? I was shocked because I tot its only in secondary market we go with whatever the bank has to offer. So I told him that I will be fine with the bank rate.
Another thing that surprised me is that I was debited immediately after leaving the bank.
My question is " what does he mean by bank rate in a primary market"? And secondly why was I debited today instead of Wednesday.
Please note.... I have been investing in tbills now for 5years. Both primary and secondary. But today I had a new and different experience. I need explanation please.

You have been investing in Tbills for the past 5 years and you are unaware that you can only dictate your rates for the primary market if you are investing 50m and above?

favoured247:
Just left first bank now. Went to fill tb form for primary market against Wednesday's auction. And wanted to know what d banker thinks is suitable for me to fill as my rate. And he was like "am I not going with the bank rate"? I was shocked because I tot its only in secondary market we go with whatever the bank has to offer. So I told him that I will be fine with the bank rate.
Another thing that surprised me is that I was debited immediately after leaving the bank.
My question is " what does he mean by bank rate in a primary market"? And secondly why was I debited today instead of Wednesday.
Please note.... I have been investing in tbills now for 5years. Both primary and secondary. But today I had a new and different experience. I need explanation please.

Ordinarily bank rate should be the rate the bank bidded for the tenures and succeeded. However, these days it is more like the rate they want to offer their customers.

The possibility of customers bidding for themselves is now limited to those who investing 50m and above.

Grupo:


You have been investing in Tbills for the past 5 years and you are unaware that you can only dictate your rates for the primary market if you are investing 50m and above?

That's what u think. It doesn't make u right. U can dictate what u want even if u have less than 50m. They have relaxed a bit on that policy. Some banks dont accept primary bidding less than 50m from customers again. While some still accept and still allow u bid. Didnt u read the part where I said the banker asked me if I wanted to go with my own bidding? Or is he ignorant of the 50millon naira mark?
I deliberately put the fact that I have been investing for close to 5 Years now to give the impression that am not new in this matter. I have been investing before they brought this #50m policy. Am encountering something new and I only wanted to know if its what others have been encountering as well

favoured247:

That's what u think. It doesn't make u right. U can dictate what u want even if u have less than 50m. They have relaxed a bit on that policy. Some banks dont accept primary bidding less than 50m from customers again. While some still accept and still allow u bid. Didnt u read the part where I said the banker asked me if I wanted to go with my own bidding? Or is he ignorant of the 50millon naira mark?
I deliberately put the fact that I have been investing for close to 5 Years now to give the impression that am not new in this matter. I have been investing before they brought this #50m policy. Am encountering something new and I only wanted to know if its what others have been encountering as well

Please, can you mention any bank?

OgogoroFreak:
you can get 14.5 in the secondary market nah. I did with diamond and gtbank @14.5%

So, if you are allowed to choose your own rate, aim higher like 15.5%

What is the face value for the secondary market

teeielts360:
Morning guys,
STANBIC IBTC TBILLS SECONDARY RATES FOR TODAY

Please find below:

12.75 % …… 108 DAYS

14.25 % ……. 38 DAYS

14.25 % …… 360 DAYS

Regards

Not bad

Edit: wait a minute, are you sure this is correct? 38days @14% which is higher than the 108 tenor?

LTRAVIS:

What is the face value for the secondary market

what's face value? If you mean the discount rate, it's the 14.5%

Nope! not entirely correct.

Grupo:


You have been investing in Tbills for the past 5 years and you are unaware that you can only dictate your rates for the primary market if you are investing 50m and above?

Eaze66:


Have gotten my answer by reading previous post

Primary market is bi monthly on Wednesdays n interest are payable on Thursdays. Also bidding for dis month is on the 16th of January 2019 on Wednesday.
Great thread weldone guys

You are a great student, this attitude will take you far in life.

ndidigood:
ur old car nko?
buying a car and maintaing it is as liability except u truly need it.l like me l HV a certain amount my money will get to b4 eyeing any car,once it get to that l will get myself a luxurious car,now m focusing on growing my wealth without distraction.
We HV one car and l careless BC m working hard,strategizing how to achieve my goal in shortest possible time.in order to get the best without struggling so much after buying.

Wow, you are a great woman and every responsible man's dream is to have such a virtuous woman as wife who prioritized short term sacrifice for long term benefits. The biggest drawdown to investment portfolio is spending it on living expenses.

Gavrelino123:

GTBANK minimum is 100k...

Are you sure as they always tell you it's 500k.

Jejebabaa:

Wow, you are a great woman and every responsible man's dream is to have such a virtuous woman as wife who prioritized short term sacrifice for long term benefits. The biggest drawdown to investment portfolio is spending it on living expenses.

Someone is shooting his shot here

Jejebabaa:

Wow, you are a great woman and every responsible man's dream is to have such a virtuous woman as wife who prioritized short term sacrifice for long term benefits. The biggest drawdown to investment portfolio is spending it on living expenses.

Thanks Mr.Jeje

Iamzik:


Someone is shooting his shot here

all work and no play.......


And I won't comment on the next page......66?

OgogoroFreak:
what's face value? If you mean the discount rate, it's the 14.5%

What is the minimum amount I can use in buying treasure bills at the secondary market ?

T-Bills Yields Settle at 15.07% as CBN Soaks N25b
https://businesspost.ng/2019/01/15/t-bills-yields-settle-at-15-07-as-cbn-soaks-n25b/

By percentage it is, but they know its just for 38 days so the interest you get from it is not so significant except you investing big. at this rate, a whole 10mill just gives you about 150k as interest.

alezzy13:


Not bad

Edit: wait a minute, are you sure this is correct? 38days @14% which is higher than the 108 tenor?

Jejebabaa:

Wow, you are a great woman and every responsible man's dream is to have such a virtuous woman as wife who prioritized short term sacrifice for long term benefits. The biggest drawdown to investment portfolio is spending it on living expenses.

I was amazed when I saw that too. It gives me hope there are great women out there not all those who want to buy bags, hairs, clothes and sheoes to slay.