Interestingly, I called my banker today and he said inflation is 9.23% which looks similar to the rate posted earlier in this thread for 1 year Treasury Bill. Anyone getting a better deal - Note treasury bill not bond.

Zeiya:
Tbills is improving gradually. I hope by April when my investment will mature, it would have bounced back fully. > 12%

Most probably, when the budget is actualised & contracts are being awarded. I believe the lnterest rate would increase, because our budget is already @ deficit, so we gats borrow sharpali.....but 12% hmmm.....I dunno, I jst dunno if it'll be back to that but it'll certainly increase

My TB investment matured since, but my headache in investing in other things like the stock market or even bonds is my strong FEAR that the naira might be DEVALUED. I wanted to invest in the stocks but which stock is the best to invest in is the worry coupled with the fear of devaluation.
I'm really confused, can someone help me out on this?
cc: mekaboy, Zeiya, yomi007k, feelamong, plendil, unite4real, ednut1

@daddi, I will advise you not to think of stocks at all. Its the best way of loosing money fast 4 now. Talking from experience. Stick to T-bills, it's much more reliable.

Daddi:
My TB investment matured since, but my headache in investing in other things like the stock market or even bonds is my strong FEAR that the naira might be DEVALUED. I wanted to invest in the stocks but which stock is the best to invest in is the worry coupled with the fear of devaluation.
I'm really confused, can someone help me out on this?
cc: mekaboy, Zeiya, yomi007k, feelamong, plendil, unite4real, ednut1

Stock is a no go area for now. I would advice u by 91 days tbills for now till rates improve well by second quarter.

mekaboy:


Stock is a no go area for now. I would advice u by 91 days tbills for now till rates improve well by second quarter.

Daddi, that's the way to go for now. Budget spending starts around second quarter and rates will definitely go up then. Go for short term investment now. 91 days TB is OK.

mekaboy:


Stock is a no go area for now. I would advice u by 91 days tbills for now till rates improve well by second quarter.

I very much agree wit meka boy.



Thats wat I did....becos LOW interest is better than NO interest.

unite4real:


Daddi, that's the way to go for now. Budget spending starts around second quarter and rates will definitely go up then. Go for short term investment now. 91 days TB is OK.

@mekaboy, exclusiveoloori and all for the help so far. The cash I have, I want to use it for a project towards the end of the year. I'm afraid the naira might be DEVALUED going by present economic situation. So if I leave it in liquid cash wit TB is one of them, its risky. If I use it to get property eg (real estate, landed property) I cant vouch how easy it'll b to resale when I need the cash.
So this is my dilemma .
Thanks all.

Daddi:
@mekaboy, exclusiveoloori and all for the help so far. The cash I have, I want to use it for a project towards the end of the year. I'm afraid the naira might be DEVALUED going by present economic situation. So if I leave it in liquid cash wit TB is one of them, its risky. If I use it to get property eg (real estate, landed property) I cant vouch how easy it'll b to resale when I need the cash.
So this is my dilemma .
Thanks all.

Naira isn't gonna be devalued! PMB has said so severally! ( afterall we have been devaluing Naira since when I was born yet it hasn't improved any thing in Nigeria )

CBN will have to look for other novel ways to weather this FOREX storm just as we pray for oil to rebound or for PMB to recover $5T from the looters..

but if I were you I will put the money in 180 days Tbills and go to bed

feelamong:


Naira isn't gonna be devalued! PMB has said so severally! ( afterall we have been devaluing Naira since when I was born yet it hasn't improved any thing in Nigeria )

CBN will have to look for other novel ways to weather this FOREX storm just as we pray for oil to rebound or for PMB to recover $5T from the looters..

but if I were you I will put the money in 180 days Tbills and go to bed

from my analysis 3 months tbill is up by o.3 will 6moths o.6 and 1 year paper is 1.2 if continues in this phase by by june 20 the 6 months bill will be at it peack of almost 14 percent ....so it better to put it in 3 months paper now then 6 months by june

feelamong:


Naira isn't gonna be devalued! PMB has said so severally! ( afterall we have been devaluing Naira since when I was born yet it hasn't improved any thing in Nigeria )

CBN will have to look for other novel ways to weather this FOREX storm just as we pray for oil to rebound or for PMB to recover $5T from the looters..

but if I were you I will put the money in 180 days Tbills and go to bed

Thanks then. Just applied for the Feb 3rd offer. I appreciate your efforts sir, remain blessed

Good day all.

please who knows the trending rate for 91days i use first bank

cc feelamong.

debbydee:
Good day all.

please who knows the trending rate for 91days i use first bank

cc feelamong.

In the secondary market yesterday the rates went down...89 days went for as low as 4%.

no update yet on today's trade from my bankers

@feelamong I just spoke with Headoffice about the FGB 2020, Please what the diffrence btw primary market and secondary market as they were mentioning it..Do you think the 2020 yeild is the best among other listed bonds As am planning on biding large sum.
Thanks

Tritri:
@feelamong I just spoke with Headoffice about the FGB 2020, Please what the diffrence btw primary market and secondary market as they were mentioning it..Do you think the 2020 yeild is the best among other listed bonds As am planning on biding large sum.
Thanks

Where una the see all these bond buy na.? Can it be gotten from banks?

Tritri:
@feelamong I just spoke with Headoffice about the FGB 2020, Please what the diffrence btw primary market and secondary market as they were mentioning it..Do you think the 2020 yeild is the best among other listed bonds As am planning on biding large sum.
Thanks

FGN2020 is quite popular and presently the only FGN being sold as reopened in the primary market.( Primary markets are the auctions that DMO conducts once monthly)

The FGN 2026 is freshly issued and its for 10yrs (that is the other bond available now at the primary market)

Secondary market is the daily trading of bonds amonsgt bond holders...unfortunately for most of us; bond trades in minimum of N100M in this market so its only the big banks, assets managers and pension funds guys with the FPM that dominate this market.
I will advise that you go for the FGN 2020 in the next auction next month. The present yieldis about 12%.

freeman67:


Where una the see all these bond buy na.? Can it be gotten from banks?

Bond auctions are done once monthly. Speak to your bank or investment house to bid for you at the next auction.

@feelamong Thank You yes i was told it 100M and above.But i was told i would pay 11M extra just to get the coupon yeild of 15%..I don't understand that? what if i want to buy that from primary market do i still pay 11M for that?

So FG2020 bond is 12%for 4years dats really poor ooo or is it 12% times 4

feelamong:

Bond auctions are done once monthly. Speak to your bank or investment house to bid for you at the next auction.

Thanks Of feelamong, I like using banks for this kind of transactions.I went to about 4 different banks last week to enquire but I was told that nothing as such exist for now.

Where is the auction for February likely to be and which Nigerian Bank can I purchase it?

qizick:
So FG2020 bond is 12%for 4years dats really poor ooo or is it 12% times 4

It's actually 15% every year.

mekaboy:

It's actually 15% every year.

you mean eventually it'll be: principal * 15%*4...
That means my N1m will yield 600k at the end 4yrs, huh?

kayone2:

you mean eventually it'll be: principal * 15%*4...
That means my N1m will yield 600k at the end 4yrs, huh?

yes.

mekaboy:


It's actually 15% every year.

The coupon rate is 15.54%

However the present yield is about 12%.

What this means is that you will actually be paying some cost to earn the 15% ....which effectively reduces your yield on the bond to 12%.

Tritri:
@feelamong Thank You yes i was told it 100M and above.But i was told i would pay 11M extra just to get the coupon yeild of 15%..I don't understand that? what if i want to buy that from primary market do i still pay 11M for that?

Yes that extra cost is the cost of getting that bond.

I will recommend that we all take some small lessons on bond yields and pricing....especially if you intend to trade on bonds as the stock exchange is looking at starting retail bond trading in the coming days...

Here you buy at high yield ( low price) and sell at low yield (high price)

feelamong:


The coupon rate is 15.54%

However the present yield is about 12%.

What this means is that you will actually be paying some cost to earn the 15% ....which effectively reduces your yield on the bond to 12%.

Thanks feelamong. I need to know if for example I want to buy the bond to earn the coupon of 15.54% and the yield us 12%. If I invested 1m Naira, what is the likely cost I will be be paying to secure that investment.

vacanci:


Thanks feelamong. I need to know if for example I want to buy the bond to earn the coupon of 15.54% and the yield us 12%. If I invested 1m Naira, what is the likely cost I will be be paying to secure that investment.

I will give you real life examples..

in Dec 16th 2016, I bought FGN 14.20% 2024 for a sister.

the coupon rate is 14.20%, the next coupon date is march 13 2016)

the yield on the Bond then was 11%

the amount I paid for the N1M bond was N204,618.52. So I paid N1, 204,618.52

(this amount is usually Made up of the coupon payments you have to pay for the former bond holders for this one its from septemebr to dec 16th + the premium on the bond)

In August 14th 2016 at the peak of the JP Morgan issues I bought N25M FGN 15.54% 2020 bond for a friend too..

the coupon was 15.54%

the yield then was 15.38%

last coupon payment was August13th

the total amount paid for the bond was N25,129,544.67 (of this 129,544.67 only 4,220 was the accrued interest for the last bondholder)

In September 16th 2015 I also bought FGN 15.54% 2020 of N17M

the coupon was 15.54%. last coupon was in August 13th)

at this time the yield was 15.95% (higher than the coupon rate due to the JP Morgan issues which led to yields rising then and price dropping)

What I paid was N17,035,907.45 ( All I paid was accrued interest to the former bond holder) I practically did not pay any premium on this.

Hmmm

feelamong:


I will give you real life examples..

in Dec 16th 2016, I bought FGN 14.20% 2024 for a sister.

the coupon rate is 14.20%, the next coupon date is march 13 2016)

the yield on the Bond then was 11%

the amount I paid for the N1M bond was N204,618.52. So I paid N1, 204,618.52

(this amount is usually Made up of the coupon payments you have to pay for the former bond holders for this one its from septemebr to dec 16th + the premium on the bond)

Thanks feelamong. Very much appreciate. Now I understand practically

feelamong:
In August 14th 2016 at the peak of the JP Morgan issues I bought N25M FGN 15.54% 2020 bond for a friend too..

the coupon was 15.54%

the yield then was 15.38%

last coupon payment was August13th

the total amount paid for the bond was N25,129,544.67 (of this 129,544.67 only 4,220 was the accrued interest for the last bondholder)

In September 16th 2015 I also bought FGN 15.54% 2020 of N17M

the coupon was 15.54%. last coupon was in August 13th)

at this time the yield was 15.95% (higher than the coupon rate due to the JP Morgan issues which led to yields rising then and price dropping)

What I paid was N17,035,907.45 ( All I paid was accrued interest to the former bond holder) I practically did not pay any premium on this.

pls am yet to understand ...example if I purchase 10 million naira worth of the 2020 bond at the primary auction ,what will be the total interest paid by 2020 plus my initial investment....

Chairman Sir, If I Say I Understand This Narrative, Make I Sleep Sef.

He No Get How You Fit Use ''If A = 1, Then B = 2'' Scenario Make Laymen Follow Understand?? Biko!

feelamong:
In August 14th 2016 at the peak of the JP Morgan issues I bought N25M FGN 15.54% 2020 bond for a friend too..

the coupon was 15.54%

the yield then was 15.38%

last coupon payment was August13th

the total amount paid for the bond was N25,129,544.67 (of this 129,544.67 only 4,220 was the accrued interest for the last bondholder)

In September 16th 2015 I also bought FGN 15.54% 2020 of N17M

the coupon was 15.54%. last coupon was in August 13th)

at this time the yield was 15.95% (higher than the coupon rate due to the JP Morgan issues which led to yields rising then and price dropping)

What I paid was N17,035,907.45 ( All I paid was accrued interest to the former bond holder) I practically did not pay any premium on this.