₦airaland Forum

zamirikpo:
guyz......what rates do we bid for 364days

@40manlappy and awesomej and being conservative.........


pls more insight.....guyz

perhaps, the month end would mean more liquidity in the banking system, with salaries hitting bank accounts. However I can't tell what the CBN's plans are for OMO. Oga Feelamong and other gurus can inform us more about the current liquidity level in the system, as well as recent happenings in the secondary market.

But I Think 18.28 is safe and rewarding enough for 364 days. Remember in the last auction, the discount for 182 day bills fell by about 300 basis points in just one auction.

zamirikpo:
@40manlappy....yea its better safe than sorry...but if i can remember vividly, 364day rates havent dropped below 18.50% for the last 4 auctions.

and going by the body language and the big big grammar from emefiele during the last mpc meeting,they want to maintain status quo. the last rate for 364 was 18.68%....so i have dash them 0.18%.......as it is.

am sticking with 18.50%....unless their is a general consensus to bid lower. am also waiting for @feelamong to give us his expert insight.

Maybe you should be more conservative, and go for 18.28%, this makes you lose at most 0.4% going by the last stop rate, and that's a difference of only #400 on every 100Gs invested, or 4Gs on every 1 mil. If you should miss out, the loss would be much more.

abdulahi001:
maybe I should open an account with stanbic, I was at Sterling today regards D tbills but not sure of the quality of their service.
please do u mind giving me ur digits so we could chat better on whatsapp?

Funny enough, I don't do whatsapp. But we can always be in touch on this thread, plus if it's convenient for you, try to open the stanbic account. I think it'll be good for your tbills experience. I read people's comments here about them in the past, and I decided to open an account with them primarily for tbills, so far it's been good. FBN is also very good, but you may not get to specify your own rate.

olujaidi:
Those rates up there are still poorer than the true yield of 182 and 364 day tenors. Plus you get your interest upfront which you can reinvest I.e. compound. With an MMF you get your interest at the end of the quarter.

The other advantage of an MMF is that you can start with as little as 5k. What one can do is to use an MMF to build up funds to a sizeable amount then withdraw and to do TB. The returns are far better than FD and savings accounts.

Very true.

abdulahi001:
please mention few that you know.

FBN, StanbicIBTC, I guess GTB too.

abdulahi001:
please I was at Zenith bank today to get info on tbills and the bank official told me, 500k is not enough to buy tbills that 1M is their minimum, please how true is this?

Very true for most of their branches. However there are several other banks that take 100Gs, and yet offer great rates.

Fynebouy:
Hello All,

Please alagbas, I will appreciate some guidance. I need to fill out the FBN TCB Form to enable me purchase at the next bid round (next Wednesday I think). There are some questions I need guidance on, such as:

1. Do you want to invest the interest payable upfront with this investment - I picked "yes". Is there any implications here?
2. On Maturity - should I authorize the bank to roll over or terminate. Is there any implications to terminating especially if I want to continue.

There is no portion of the form which permits me to stake my own discount rate.

Any experience with First Bank which would guide me on the above?

An 18% discount on a 364 day investment has true yield of 21.95%. The same rate for a 182-day tenor is of a true yield of 19.78%
When you choose to invest the upfront interest payable on your investment, intstead of being paid an upfront interest of 18,000 on your 100,000, you don't get any interest at the inception of your investment, but at maturity you will get 121,950 instead of 100,000. This implies an extra 3,950 on every 100,000 invested for a year.

You can choose to terminate even if you yet have future plans to re-invest. it is better that way because by the time the investment matures you may have other plans for the funds, or you may want to use another bank or investment house, if you choose to roll over just like that, it may be difficult to access the funds on maturity. reinvesting on maturity is as simple as going back to the bank and re-instructing them. there are no hassles.

For most FBN branches that I know, you'd hardly be allowed to specify your own rate, rather, you'll have to go with their own rate, which oftentimes is above 90% of CBN's stop rate.

You should also know that on the very day you submit your bid, FBN will pull the funds from your account, and on the settlement day for the next auction, you'll get your upfront interest credited if it applies based on your investment instructions.

yeancahwunmi:
Good evening everyone,

Please, which would you suggest between NTB & Money markets with reasons. I need your advice and suggestion in reaching a conclusion.

Thanks.

primarily, the advantage money market investment has over treasury bills is the flexibility in redeeming your investment. For most MMF, you can redeem after the initial 30 days without incurring any penalty. You can even withdraw earlier albeit with a little penalty.
Aside this flexibility in withdrawals, the rates for funds like StanbicIBTC MMF compares with tbill rates as follows:
At about 17% currently, It
-beats 91-day NTB
-is almost at par with 182-day NTB(could be better off if your bank is funny)
- below 364-day NTB, by offering about 1,500 less in returns for every 100,000 invested.
The best thing is having a portfolio containing a mix of these investments, so you can leverage on the pros of each of them.

ETHIX:
Oga, what Stanbic did was wrong. They should have credited u back ur principal since your bid was not successful. The approved CBN rate was 17.25% for 182 days while you quoted 17.35.

However they should have left you with the option of buying from a secondary market or you wait for the next bid.

What Stanbic did was either of the following.
They gave you their rate contrary to your instruction or they bought you Tbills at the secondary market.

Banks don't lose out in Treasury bills they are only smart to manipulate their customers ignorance and maximise their return. Imagine they gave u 16.7 for 182 days at worst 17% would have been better but you are here praising them

Dear sir,
The stated transaction was initiated by and for me, and so more than you, I should be the one to appraise what the bank's actions were, great or otherwise. In this case, I was overly satisfied with what they did, and I have given my appropriate appraisal, what is that to you?
The interest from the investment was supposed to be part of my gross income for the month. I was already regretting missing out on that, and these guys came through for me, you expect me to yet castigate them. Whatever theory about tbills investment you're quoting here is something I can. probably teach you more about. when they failed at the last auction you complained, now they were more careful, you're yet complaining. I think you should get born again sir, you'll then enjoy life more.

My great stanbic guys obviously learnt from the mistake made in the last auction. They bidded conservatively at just about 16.7% for 182 days. Thanks to them, I already thought lost out, because I submitted 17.35 for 182 days (I wonder what I was thinking). This is the second time they are making me go with the bank rate contrary to my instruction, and guess what, it's always paid off big time. I guess I'll just choose to always go with their rate. stanbic for me means a good deal for investment transactions, their MMF too is doing around 17% for me, with the added advantage of flexible withdrawals. God bless stanbic, and all of those who work there. Thanks guys.

For those who will always say they are moving away from one bank due to one small mistake on the bank's part, there's a very high chance that you stand to lose more than the bank does. With hundreds of billions in their balance sheet, you'd need to move at least a billion before they even notice. All you pay them for helping you bid are those meagre charges, but you'll lose much more if your new investment house is worse off. Stanbic for me remains one of the best banks currently for tbills. they hardly offer you less than 0.2% of CBN's stop rate, plus they always let you specify whatever rate you want. If you were to fail in the bid you placed for yourself, would you stop involving yourself in the other investment decisions you make?

^^so, what's wrong in the post you quoted?

X21:
it cannot be 14th and 21st dec. there is usually 2 weeks gap. you may wish to revise

Well, I think it will be 14th and 21st. The first 2 auctions in every TBills quarter are always held on successive Wednesdays. You may want to check the calendar for previous quarters.

NTB 1st quarter 2017 auction calendarMy Projection)
14th Dec
21st Dec
4th Jan
18th Jan
1st Feb
15th Feb
1st Mar.
There are always 7 auction days in every TBills quarter. This next auction is the last one for the Q4 2016 calendar
N.B The above dates are auction dates, settlement dates for each auction Wednesday is the following Thursday.

boneyemboy:
I Can't Wait To Publish My Palmoil Business Book Online;this Book Is Special Not Those Ones Written On Website Or Blogs .Reason Why This Special(1)palmoil Business Is 50% Measurement(calibration) If U Are Not Grounded On Calibration Jst 10 Kegs U Can Lose #30,000 Instantly Even Though U Bought It Cheap Ask A Dealer (2)how To Avoid Palmoil That Will Sleep When Cold Or overnight (3)why You Should Avoid Palmoil Sold In Drums Unless For Industrial Uses (4)how To Know Pure Palmoil (5)many More That I Cant Mention because Of Pirates.This Time U Are Reading A Book From A Dealer Where U Are Free To Ask Questions When Confused.Pls This Book Is Full Of Calculation(high Education Standard) So If U Not Grounded U Will Need Someone Who Is Grounded In Calculation. I STILL REMAIN MY HUMBLE SELF MR ERNEST

Dear Mr Ernest, please where do you think I can get good quality oil from at a great price. How much do you think I can get a 25-litre keg for. If you don't mind, you can ring my phone on 09028770613. I really do want your guidance.Thanks.

@hardniola, this case of yours with union bank is such a funny one.
One reason they may give for reinvesting your funds is that you instructed them to roll over the investment when you initially gave your instructions in May. But given that the investment matured on 17th, there should be no way they could have reinvested at the last bidding date of 16th.
I think you should stay on their neck, ask them to show you your original instructions regarding the investment, and then request that whatever they did to come up with this current interest be reversed, so you may get your funds. Tell them you'll make a report to the CPC and the CBN, if they don't resolve the issue soon enough.

Please those that have used FBN recently, are customers now allowed to specify their own rate? contrary to the old pattern of compelling customers to go with the bank rate?

Nelzone:
Abaaaaah. 31 for mining and I wasn't invited... I could remember mining questions were 40 dat day. And I answered over 30 correctly, cos was really cheap for me being from geology background, so i had time to cross check and was just a few, perhaps less than 10 I wasn't sure. Lets say for the benefit of doubt i got 25/40 there, for which i know i got way more than that. Then the general questions, i can't say I did dat well. That was the tough for everybody. Buh even at that there were some of the question there that I got straight up, my summarized count gives atleast 20 sure ones like dat. There were verbal and other non engineerin related questions na. So lowest i feel i should have scored wld be 45. Thats why hearing a 31 was invited is weird. Meaning I scored less than 30. It twas school i cld boldly contest that result. Buh yet again. For the benefit of doubt I'll just assume they used negative marking or perhaps they removed people that didn't study exactly mining engineering therefore ruling out doz that studied geology. Well anyhow, i have alreadt let go, just dat hearing dis 31 gettin an invited is really makin it kinda strange. Congrats u all who will make it. See u at d top

Nelzone, perhaps you graduated in 2013 or earlier. If that be the case, then you were probably not dropped cos of your score.

Surprisingly, I've just confirmed that I didn't make the list. I didn't think I could fail the test, perhaps I thought wrong, or perhaps my 2012 degree isn't what they are looking for. congrats to my wonderful peeps- agwuabia and all, who made it thus far. Hope we get to meet some other time. Now I'll swap engineering for business. Surely, we'll all meet at the top.

agwuabia:
There are currently in the process of selecting .....There are finalising the process.....The people selected will be informed to come for the interview. Once they are ready ,we will hear from them. For sure everything will finish this year(I mean GETS2016 recruitment). Commencement of the training should kick off towards the end of the year around December. Interview should be within next month around November.

Thanks bro. Sipping more from my patience bottle.

@agwuabia, any news concerning interview date?
Those who wrote in Obajana on the 7th, was any useful info given concerning the commencement of the training?

michael03:
Pls what is MMM?can u pls enlighten us

It's one of these pyramid schemes currently making waves in the country, albeit people say it's more organized than most others. One thing you'd however never be able to take away from such schemes-no matter how organized- is the high level of risk involved, another is the high potential for it to ultimately fail, given that the model lacks the fundamentals to thrive in the finance world.
Most of us who do T-bills do it for its virtually no risk involved. We'd rather be comfortable with even 12% p.a ROI with our capital guaranteed than risk our capital for rates like 360% p.a which schemes like MMM offer.
If you're willing to take the risk on MMM, just talk to people around you. I'm certain that at least 1 in 10 persons will know enough to put you through it.

P.S I do not intend to discredit MMM in any way. A lot of people are making huge cash from it. I personally have gotten a credit alert of NGN 1000.00 from it, without even participating. I am just saying we should take investment decisions based on our risk appetites.

@ihavespoken, your post above's got my rib cracking. I actually just found out that the alert came in from MMM. A friend had registered me for it without my consent, and the alert I saw was like a welcome bonus. I got a call from this friend this evening.

whyniel:
100k is meant to be the minimum across board.

For sure, FBN takes bids from 100Gs upwards, but not all banks do. Zenith for instance would decline to place customer's bids that are below 1 mil.
For the person asking about how soon interest is credited. In June my interest alert came in at about 10:30am on the settlement date(the Thursday after the auction day). This last auction, it came in around 2:02pm.
Now my own question:
If you got a credit alert on one of your accounts for an amount paid in by a stranger, what would you do. Got such an alert today. The money isn't much though.

michael03:
Hello d gurus in d house,pls I want to kno if my bank will automatically remit my mony into my account wen my tb investment is mature or wil I nid to go and apply for it to b paid into my account agan? Thanks

yes bro, your money is automatically credited into your account on the maturity date. You do not need to make any application for that to happen. I use fbn, and my last matured tbills was credited back to my account at about 9:11 am on the maturity date ( Sept 22nd).
The only exception to this is if you've instructed your bank to roll over the investment on maturity.
FGN has a credit rating of AA in my opinion.

It very sure is. Thanks for taking the time. nice night, sweet dreams.

@agwuabia, Thanks for coming around. For sure GETS training most definitely makes a better engineer out of grads like us than M.Eng does. What's your take on this new invite some people are saying they received?

wapadunk:
This time am becoming more unavailable: as I have already accepted another good offer. I waited long enough, I think.

congrats to you my dear brother.

@JosephJuwon, won't you come to say happy new month to us here?
To those scheduled to take their test next week, I wish you all accuracy, speed, excellence, and good success.

For the rest of us who have since written our test- my dear agwuabia, wapadunk, ukeachu, and all others, my wish is that the November mentioned by the HR people becomes the time that has been scheduled for our resumption-that interview comes up this month. Can't wait to finally get to be trained together with you guys.
Happy new month, and happy independence to us all. God bless.

Berbatee1:
I've gotten an invite for GETS BATCH 6 APTITUDE TEST – OBAJANA CENTRE.

Good to know that. When is the test scheduled for?