To those who are always after the next big thing, the next big %, reports circulating the financial platform has it that Bond issued by the Visionscape guys has just defaulted in its coupon payment.

What surprised me, was that this bond was rated A+ by Agusto and co.
So it means all this credit rating agencies are just busy dashing marks without due diligence.

4bn put into this bond is temporarily hanging, this is just to warn those who are always after the next big thing, always chasing the next big rates.

Despite the bond backed by Lagos state Govt
Despite the awesome rating by a supposed credible rating agency, they still DEFAULTED!!!

Abeg continue your Tbills o, FG cannot default, atleast not in this life

Aren't you all worried about the fact that Nigeria spent 38 billion USD last year defending the naira? And our current FX reserve is 43 USD billion? Do you all think this is sustainable?

chukzyfcbb:

u made 100% in 2yrs, wawu that's amazing.

And you are right about omonile lawyer post here on NL (property moderator), he has dropped a lot of insights all for free that most lawyers would hoard.

Anyone who wants to buy landed properties should take time to go though his threads.

for example people rush C/O properties forgetting they will need to present tax receipts of both Seller and buyer when processing governors consent plus many more inisghts....

Before I was a novice, but with what I have read over the years from his thread, I can do a quite decent job at scrutinizing landed docs.

all the same landed investment sha is one dicey something in lagos

Pls can u drop the link to the thread here. Thanks

Nigeria’s FX market is at its most liquid in 4yrs
…As foreign investors flood into bond market after Buhari victory…I & E window trades climb 120% to $4bn in one week

https://businessday.ng/exclusives/article/nigerias-fx-market-is-at-its-most-liquid-in-4yrs/

feelamong:


Nigeria’s FX market is at its most liquid in 4yrs
…As foreign investors flood into bond market after Buhari victory…I & E window trades climb 120% to $4bn in one week

https://businessday.ng/exclusives/article/nigerias-fx-market-is-at-its-most-liquid-in-4yrs/

What does this mean though? In a nutshell?

GonFreecss1:


What does this mean though? In a nutshell?

The Bonds and Money market is bullish.....expect lower stop rates in Tbills

chukzyfcbb:
To those who are always after the next big thing, the next big %, reports circulating the financial platform has it that Bond issued by the Visionscape guys has just defaulted in its coupon payment.

What surprised me, was that this bond was rated A+ by Agusto and co.
So it means all this credit rating agencies are just busy dashing marks without due diligence.

4bn put into this bond is temporarily hanging, this is just to warn those who are always after the next big thing, always chasing the next big rates.

Despite the bond backed by Lagos state Govt
Despite the awesome rating by a supposed credible rating agency, they still DEFAULTED!!!

Abeg continue your Tbills o, FG cannot default, atleast not in this life

Hmm, so is SUKUK bond safe?

feelamong:


The Bonds and Money market is bullish.....expect lower stop rates in Tbills

Interesting. Thanks.

@feelamong and other gurus in d house pls kindly torchlight on my matter.

Got tbills,secondary market at gtb for 12.25% 4 364 days.

However I didnt quite get d charges,almost 9k was deducted from my interest which was paid upfront.

N my account officer,i just did not understand his explanation for d charges.

CBN May Lower Rate at N89.50bn T-Bills Sale
https://businesspost.ng/2019/03/11/cbn-may-lower-rate-at-n89-50bn-t-bills-sale/

bisiswag:
...Got tbills,secondary market at gtb for 12.25% 4 364 days.

However I didnt quite get d charges,almost 9k was deducted from my interest which was paid upfront.

N my account officer,i just did not understand his explanation for d charges.

Can we ask if you invested an amount in the region of =N=8.5million? When we last asked, GTB deducts 0.1% of the face value/whole amount and =N=300 flat upfront. A charge of almost 9k makes sense if you invested 8.3-8.7million.

CompareDBest:
Can we ask if you invested an amount in the region of =N=8.5million? When we last asked, GTB deducts 0.1% of the face value/whole amount and =N=300 flat upfront. A charge of almost 9k makes sense if you invested 8.3-8.7million.

Owk. Sth in that range. Thanks so much.

T-Bills Yields Hit 13.37% Amidst Buoyant Liquidity
https://businesspost.ng/2019/03/12/t-bills-yields-hit-13-37-amidst-buoyant-liquidity/

Blanc8:



Hello,

There is no doubting the fact that T Bills are be eternal investment securities with higher returns than most other money market instruments available in the Nigerian Financial system.

However,your calculations and assumptions are quite innacurate and may not potray the exact analysis for practical purposes.

As a guide, T Bills can be done from as low as N500,000 & not N50mm as quoted by a commenter. However certain investment buckets in the T bills market have a minimum of such (where you wish to determine or bid your own rate as aginst that to be set by the CBN during sales).

For savings accounts, interest is compounded monthly and not in simple interest format. You invest N10mm principal, in month one. By month 2 your Total amount becomes N10mm plus N30k interest.
Therefore when calculating the interest for month 2, you no longer use N10mm but N10,030,000 as principal and incrementally so on till month 12.

You should be receiving some few thousand above your straight line calculation of N30k monthly time 12 months.

Also , T bills rate are guided by the MPR (Monetary Policy rate , which Is at 14% today). The are always lower than this rate, once they are issued by the CBN. T Bills are priced based on Tenors rather than amounts. So the interest rate for a 91 days differs from that of a 182 and 364 days (The lower the tenors, the lower the rates).

Also, unlike T Bills, Savings deposits could be negotiated (on a fixed term) & these rate could sometimes rival T bills in some banks, depending on the liquidity appetite for such banks at the time of your proposed investment.

T Bills have an advantage of having no WHT (Witholding Tax) payments, so you get your full interest, tax free, except for some few fees of less than N1,000 charged for transfer and monitoring.

In all, I'd go for a T Bill for higher returns, longer tem investment purpose and funds security. But a fixed deposit for shorter periods and if the funds needs to show on my account statements for related purposes.

You have misleading comments here please.

First Treasury bills is not as low as 500k but 100k. This is important to not scare small investors.

Secondly, TB irate s not always below MPR as you stated. We have bought Treasury bills at 18 to 19% in this era of 14% MPR. Even just last month, I have bought at 14.95% so what you saying?

Please can someone clarify these message my account officer keeps telling me anytime i request for tenor and rates.

Dear sir,

We do not know the rate until after the bid

Thank you
They have never for once 'known', are they trying to discourage me.
I make this request every Monday but they have never for once given me a date to apply, even though i see rates posted on here.

carik:
Please can someone clarify these message my account officer keeps telling me anytime i request for tenor and rates.

Dear sir,

We do not know the rate until after the bid

Thank you
They have never for once 'known', are they trying to discourage me.
I make this request every Monday but they have never for once given me a date to apply, even though i see rates posted on here.

I think they are referring to primary market. If you tell them you want secondary market rate, they'll give it to you.

All right.
But what's the difference between the two rates.
Thanks

dipoolowoo:
T-Bills Yields Hit 13.37% Amidst Buoyant Liquidity
https://businesspost.ng/2019/03/12/t-bills-yields-hit-13-37-amidst-buoyant-liquidity/

I am so happy this rate keeps dropping. Very happy.

GonFreecss1:


I am so happy this rate keeps dropping. Very happy.

Can you share your reason?

aremso:



Can you share your reason?

1. There is only so much debt the country can keep accumulating due to rates as high as 17%.

2. Now, the stock market will have a chance to grow.

3. People might actually be incentivized to start a business, and employ people.

If I had 10 billion naira. What do you think I will do? Buy Tbills at 17% ? Invest in the stock market? Or create businesses?

We all know the answer to that. I know a friend who has talked to some private businesses and their earnings is not doing better than Tbill rates.

GonFreecss1:

Put that money in low risk mutual funds and keep topping it up slowly.

Please kindly suggest any mutual fund

Haypril07:


Please kindly suggest any mutual fund

Stanbic IBtc money market fund


Fbn quest money market fund


Contact Stanbic or FBN quest. Anyone you desire.

CompareDBest:
Can we ask if you invested an amount in the region of =N=8.5million? When we last asked, GTB deducts 0.1% of the face value/whole amount and =N=300 flat upfront. A charge of almost 9k makes sense if you invested 8.3-8.7million.

Also add the custody charges for holding the Tbills for you

Any primary market auction this week?

brane:
Any primary market auction this week?

Yes, tomorrow

dipoolowoo:
T-Bills Yields Hit 13.37% Amidst Buoyant Liquidity
https://businesspost.ng/2019/03/12/t-bills-yields-hit-13-37-amidst-buoyant-liquidity/

I just read the link that was posted and it was referring to the secondary market transaction closure rate. Although everyone is expecting the rate to drop by tomorrow, but the extent is unknown to the auction is completed!

Lets hope for the best!!!!

chukzyfcbb:
To those who are always after the next big thing, the next big %, reports circulating the financial platform has it that Bond issued by the Visionscape guys has just defaulted in its coupon payment.

What surprised me, was that this bond was rated A+ by Agusto and co.
So it means all this credit rating agencies are just busy dashing marks without due diligence.

4bn put into this bond is temporarily hanging, this is just to warn those who are always after the next big thing, always chasing the next big rates.

Despite the bond backed by Lagos state Govt
Despite the awesome rating by a supposed credible rating agency, they still DEFAULTED!!!

Abeg continue your Tbills o, FG cannot default, atleast not in this life

The Visionscape bond has the following defects

1. It is not a green Bond. Not backed by FGN
2. At 15.75%, it's not the next big thing
3. It was a private placement and not sold to the public so you will hardly find people like us here investing in it
4. Since it was a private bond, there is very little the SEC can do about it since the general public was not involved
5. It was only offered to qualified investors by private placement. The guys in the club nurse their problems
6. because it was private placement, the transaction was therefore not subject to the prior review and approval of the commission and does not fall within it's regulatory review
7. The contract of Visionscape was revoked by the Lagos assembly and given to PSP operators without sympathy from Lagosians. Remember this is one of the reasons Ambode fell out with political gladiators in Lagos State.
8. The bond did not get the backing of the Lagos assembly and was not gazetted into law to transcend leadership changes, so investors will wait for the next government of Lagos to help them out

NOTE

this cannot happen to a federal government bond, savings bonds or the SUKUK or Treasury bills. These have the backing and full faith of the federal government of Nigeria. These also transcend leadership changes at the top.

@manlikeegb I hope this answers your question too.

feelamong:


Also add the custody charges for holding the Tbills for you

How much was charged as custody fee?

bozz007:


Yes, tomorrow

Thanks

unite4real:


The Visionscape bond has the following defects

1. It is not a green Bond. Not backed by FGN
2. At 15.75%, it's not the next big thing
3. It was a private placement and not sold to the public so you will hardly find people like us here investing in it
4. Since it was a private bond, there is very little the SEC can do about it since the general public was not involved
5. It was only offered to qualified investors by private placement. The guys in the club nurse their problems
6. because it was private placement, the transaction was therefore not subject to the prior review and approval of the commission and does not fall within it's regulatory review
7. The contract of Visionscape was revoked by the Lagos assembly and given to PSP operators without sympathy from Lagosians. Remember this is one of the reasons Ambode fell out with political gladiators in Lagos State.
8. The bond did not get the backing of the Lagos assembly and was not gazetted into law to transcend leadership changes, so investors will wait for the next government of Lagos to help them out

NOTE

this cannot happen to a federal government bond, savings bonds or the SUKUK or Treasury bills. These have the backing and full faith of the federal government of Nigeria. These also transcend leadership changes at the top.

@manlikeegb I hope this answers your question too.

well detailed bro

feelamong:


Also add the custody charges for holding the Tbills for you

Thanks Oga FeelAmong...We should have clarified the 0.1% of face value was the GTBank Custody charge.

One-Month T-Bills Yields Shed 1.79% to Settle at 8.66%
https://businesspost.ng/2019/03/13/one-month-t-bills-yields-shed-1-79-to-settle-at-8-66/