Treasury Bills Market Trades Flat as Yields Drop to 11.70%
https://businesspost.ng/2019/05/28/treasury-bills-market-trades-flat-as-yields-drop-to-11-70/

RealityShot:
yes.

You earn upfront interest again if you invest the first interest at the same time.
(but the interest must exceed 100k)

Exactly how much minimum?

RealityShot:
yes.

You earn upfront interest again if you invest the first interest at the same time.
(but the interest must exceed 100k)

I have done tbills for a while, but I have some doubts. If I choose to invest interest(upfront) along with my principal, how would it work? Would I be credited upfront on the original upfront on successful bid? Or, get true yield(get 13.4 % instead of 12.2% discount rate) on the whole at the end of tenure?

They will reinvest all your upfront interest of the interests until the last 400 or 500naira which will be credited to your account

ositadima1:


I have done tbills for a while, but I have some doubts. If I choose to invest interest(upfront) along with my principal, how would it work? Would I be credited upfront on the original upfront on successful bid? Or, get true yield(get 13.4 % instead of 12.2% discount rate) on the whole at the end of tenure?

Please which people offers the best MMF. I mean flexibility, reliability and good rates. I want to put some money in mmf

ositadima1:


I have done tbills for a while, but I have some doubts. If I choose to invest interest(upfront) along with my principal, how would it work? Would I be credited upfront on the original upfront on successful bid? Or, get true yield(get 13.4 % instead of 12.2% discount rate) on the whole at the end of tenure?

lol...

It's kinda fishy sometimes.. I will explain with numbers..

You invest N1000000
You will get N125000 (at 12.5% rate)

Then you asked for reinvest interest,
So you automatically invest the N125000
And you will get N12500+ in your account.


At the end of the year,
You will get N1125000 back from Tbills.

Add the N12500+
And you have total of N1137500

Therefore your true yield is N137500

Which is interest rate of 13.75% (TRUE YEILD)


Happy investing

chigo4u:
Please which people offers the best MMF. I mean flexibility, reliability and good rates. I want to put some money in mmf

I use stanbic IBTC Asset managers..
Never had an issue.
Very flexible.
Withdrew money during Xmas holidays without qualms.

Rates are very OK year round
And you do not need to open an IBTC bank account.

RealityShot:
lol...

It's kinda fishy sometimes.. I will explain with numbers..

You invest N1000000
You will get N125000 (at 12.5% rate)

Then you asked for reinvest interest,
So you automatically invest the N125000
And you will get N12500+ in your account.


At the end of the year,
You will get N1125000 back from Tbills.

Add the N12500+
And you have total of N1137500

Therefore your true yield is N137500

Which is interest rate of 13.75% (TRUE YEILD)


Happy investing

Not fishy at all, it is straight forward. It is like running two separete tbills in one, principal and the upfront. Thanks

Now to make it a little complicated, if i then add roll over to it, what are the implications? Does it mean that my investment would compound automatically as I now have principal and initial upfront at end of tenure? That would be something, I can just fix an amount, forget about it and let it compound over several years.

ositadima1:


Not fishy at all, it is straight forward. It is like running two separete tbills in one, principal and the upfront. Thanks

Now to make it a little complicated, if i then add roll over to it, what are the implications? Does it mean that my investment would compound automatically as I now have principal and initial upfront at end of tenure? That would be something, I can just fix an amount, forget about it and let it compound over several years.

you are right..
You can add rollover till whenever.
And compound interest will occur.

One-Month Treasury Bills Yield Falls to 9.61%
https://businesspost.ng/2019/05/29/one-month-treasury-bills-yield-falls-to-9-61/

The Central Bank of Nigeria (CBN) is scheduled to hold a Treasury Bills (T-Bills) Primary Market Auction (PMA) on the 30th of May 2019. T-Bills worth NGN 67.37bn will mature, and an equal amount will be issued in the 91-day, 182-day and 364-day instruments.

can I open fbn quest account today and how much will 350k give?

Godrocks:
can I open fbn quest account today and how much will 350k give?

Wrong tread but you can do the math using 13% at least interest rate, compounded quarterly. Dnt forget to divide the interest by 4 to know d amount u wl receive quarterly

chigo4u:
Please which people offers the best MMF. I mean flexibility, reliability and good rates. I want to put some money in mmf

Go to MMF tread, you wil learn more

FBN debited me last night of tbillz for 182 days..

Apus:
The Central Bank of Nigeria (CBN) is scheduled to hold a Treasury Bills (T-Bills) Primary Market Auction (PMA) on the 30th of May 2019. T-Bills worth NGN 67.37bn will mature, and an equal amount will be issued in the 91-day, 182-day and 364-day instruments.

Does this mean I can apply tomorrow?

Apus:
The Central Bank of Nigeria (CBN) is scheduled to hold a Treasury Bills (T-Bills) Primary Market Auction (PMA) on the 30th of May 2019. T-Bills worth NGN 67.37bn will mature, and an equal amount will be issued in the 91-day, 182-day and 364-day instruments.

please I want to know if profit made from treasury bills are taxed at the end like commercial banks place withholding taxes of ten percent on fixed deposits

gold360:
please I want to know if profit made from treasury bills are taxed at the end like commercial banks place withholding taxes of ten percent on fixed deposits

The interest is not taxed.

Those interested in buying BDC license....get today's BusinessDay newspaper.

You will find info on BDC license for sale from Lagos operators. Price tag N40M

Mizwisdom:

Does this mean I can apply tomorrow?

Yes please.

What is the current rate of Tb at the secondary and primary market and when will the auction for primary market likely commerce? Please help a learner like me!!

kam045:



Chairman,
I want to use this medium to thank you for your invaluable contribution towards treasure bills investment education. Your exposition and thorough explanation is quite commendable and insightful.

However, i will like you to throw more light on your monthly Tbills subscription, because i was wondering how the effect of compounding interest will take place, if your keep taking the interest upfront without compounding it. Ultimately, meeting the target of 1B on a planned date may not add up.

I will appreciate your kind response.

Thanks boss, I am investing monthly and converge all at my calendar year end. I do an average of 27m annually but nothing less than 500k monthly. Had a 20 years plan that got me to 2032 with over 800m. With that capital, I can comfortably achieve my billion mark in next 2 years. The way am surpassing targets, I might still meet up before 2032 by God's special grace. Amen. On compounding, I don't compound, I invest and reinvest the interest on secondary market and continue till I have the amount I will use.

Barrytone:


Thanks boss, I am investing monthly and converge all at my calendar year end. I do an average of 27m annually but nothing less than 500k monthly. Had a 20 years plan that got me to 2032 with over 800m. With that capital, I can comfortably achieve my billion mark in next 2 years. The way am surpassing targets, I might still meet up before 2032 by God's special grace. Amen. On compounding, I don't compound, I invest and reinvest the interest on secondary market and continue till I have the amount I will use.

Out of curiosity Barrytone, how did you work out a 20-year plan that leads to 800m+?

Assuming you're investing 27m yearly at an average rate of 12%

RealityShot:
I use stanbic IBTC Asset managers..
Never had an issue.
Very flexible.
Withdrew money during Xmas holidays without qualms.

Rates are very OK year round
And you do not need to open an IBTC bank account.

Ok thanks.. So you didn't open an account with them? Is is advisable

ahiboilandgas:
If u can absorb this shock without death then u can make money ....this way one of my tanker moving 45000 litres of jet fuel to abuja ....i make around 450k per trip to kano airport ....but this can happen no risk no reward....a good truck can go 4 times a month this how we accumulate what is invested in tb

On the shock... don't you insure the trucks?

HeliosHay:


Out of curiosity Barrytone, how did you work out a 20-year plan that leads to 800m+?

Assuming you're investing 27m yearly at an average rate of 12%

I worked it out with 14%, even with dwindling rate and surpassing my targets which means I raised more capital than expected. So far I have ran it for 2 years and have surpassed my targets each year and took a break as at February this year to buy car. I was supposed to be making 48m by September but am looking at 53m after buying of car. Without buying that car, I would be expecting 65m. Excess of 12m. I would stop investing when rates go beyond 8%. Remember to add 6m to every 50m at 12%, so after year one I added 4.5m and by the end of year 2, I will add atleast 6m to the 27m and it keeps increasing.

Barrytone:


I worked it out with 14%, even with dwindling rate and surpassing my targets which means I raised more capital than expected. So far I have ran it for 2 years and have surpassed my targets each year and took a break as at February this year to buy car. I was supposed to be making 48m by September but am looking at 53m after buying of car. Without buying that car, I would be expecting 65m. Excess of 12m. I would stop investing when rates go beyond 8%. Remember to add 6m to every 50m at 12%, so after year one I added 4.5m and by the end of year 2, I will add atleast 6m to the 27m and it keeps increasing.

Alright, thanks for explaining. Really inspiring

Barrytone:


On compounding, I don't compound, I invest and reinvest the interest on secondary market and continue till I have the amount I will use.

If this isn't compounding, then what is?

olujaidi:


If this isn't compounding, then what is?

Compounding is asking them to reinvest your interest till less than a 100k is left. The process is repeated till you have less than a 100k. I reinvest till it gets to the amount I so desire. Compounding is a one time investment while mine is invested after interest is paid which is likely next day and on secondary market

Barrytone:


Thanks boss, I am investing monthly and converge all at my calendar year end. I do an average of 27m annually but nothing less than 500k monthly. Had a 20 years plan that got me to 2032 with over 800m. With that capital, I can comfortably achieve my billion mark in next 2 years. The way am surpassing targets, I might still meet up before 2032 by God's special grace. Amen. On compounding, I don't compound, I invest and reinvest the interest on secondary market and continue till I have the amount I will use.

Chairman,
Thanks for your wonderful explanation. However, i need further clarifications. I intend to align my investment objectives inline with your cash projection.
Does it mean that your monthly subscriptions, all have different maturity dates, for them to converge into year calendar end? Thereby enabling you to subscribe for your annually Tbill.

I look forward to your kind response.

Barrytone:


Compounding is asking them to reinvest your interest till less than a 100k is left. The process is repeated till you have less than a 100k. I reinvest till it gets to the amount I so desire. Compounding is a one time investment while mine is invested after interest is paid which is likely next day and on secondary market

Do you mean reinvest as a fresh investment or you reinvest your upfront in the secondary market? If it is the latter, you have compounded.