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Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)
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Re: Treasury Bills In Nigeria by Nobody: 1:00pm On Mar 19, 2017 |
Guys, how secured are these t-bills/govt bonds. Has any one invested over 10 Million Naira, and got his interest and capital back after the maturity date? Hope the banks/govt do not come up with stories on the maturity date on how they cannot pay back the capital on the said date/or related stories that hurts? Lastly, what is the difference between treasury bills and bonds. My basic understanding tells me bonds are debts. Are they issued at a higher rate than t bills? Guys please i need your input/experiences 1 Like |
Re: Treasury Bills In Nigeria by Houstency(m): 6:09pm On Mar 19, 2017 |
Ace2013: Your money is safe. Tbills is one if not the safest financial security out there, worst case scenario govt would just print excess money to pay up outstanding debt. Your interest is upfront and banks serve as medium or broker between you and the govt (CBN), that's why they charge you commission fees etc, they do not have access to your funds but the safe keeping house and govt. I stand to be corrected, govt have not defaulted since NTB inception. And you are borrowing the Nigerian govt in both instances, the duration and mode of payment is the only difference between them. Invest your 10m without fear, but pray against break up, war and the likes, that's what you should worry about lol. Regards 4 Likes 1 Share |
Re: Treasury Bills In Nigeria by lobell: 8:41pm On Mar 19, 2017 |
Ace2013: The only story is IF Nigeria ceases to exist. As long as Nigeria remains one then your money is safe to the last kobo and on said date unfailingly. |
Re: Treasury Bills In Nigeria by ihedioramma: 10:19pm On Mar 19, 2017 |
TRUTH . |
Re: Treasury Bills In Nigeria by chukzyfcbb: 11:15pm On Mar 19, 2017 |
sanerugwei:don't be faster then your shadow bro,lol you will need to find out the workings of your bank before trying to outsmart them. As with first bank, the moment you submit your bid request, the money will be debited from your account immediately. if the bid was successful, you get your interest paid upfront. in this case, if you applied this approach with first bank by placing a bid of 1m when u have just 825k in your account, I am sorry to say it would be declined. However not all banks debit you immediately you submit your request, which is what you should find out from your bank. I asked this same question a long time ago because I wanted to outsmart them,lol. so dnt be faster than your shadow 6 Likes |
Re: Treasury Bills In Nigeria by sanerugwei: 8:24am On Mar 20, 2017 |
chukzyfcbb: I specifically said this works with GTB. I do not understand First Bank's rationale for withdrawing the whole amount at first then paying back the upfront interest after the bid. What do you mean by outsmart, you made it sound like some dubious operation. It isn't. 1 Like |
Re: Treasury Bills In Nigeria by NL1960: 8:45am On Mar 20, 2017 |
chukzyfcbb: The same with my Bank, Stanbic. When i filled my form at the branch, the guy checked my balance and even saw that the amount in the account was not up to and he pointed it out. I told him that i was on my way to the office to do a transfer from my internet banking to complete the amount. He then told me to ensure that the account is fully funded by Monday because i filled the form on Friday. By Monday, the amount i was bidding for was immediately placed on hold. 2 Likes |
Re: Treasury Bills In Nigeria by NL1960: 8:52am On Mar 20, 2017 |
sanerugwei: Do not forget that most people go through their branches for NTB. It is the Head office people that do this bidding. I doubt the Head office people will be wasting their time to start calculating and subtracting upfront interest, subtracting charges just because they want to arrive at an amount. Na how much the person dey bid to make head office people to be cracking their heads like that. So i guess it is for your own good that the branch people do that. In addition, most banks require bids to be submitted 2-3 working days before the bid date. If that amount is not debited and a cheque or a withdrawal comes in from another source that the owner probably must have forgotten, it means the bid will fail. 2 Likes |
Re: Treasury Bills In Nigeria by dejiotus: 12:32pm On Mar 20, 2017 |
Good afternoon to all the gurus in the house. Can someone kindly advise the house if there is Treasury bills auction this Wednesday, for some of us that lost out last week. |
Re: Treasury Bills In Nigeria by munezo(m): 1:20pm On Mar 20, 2017 |
Yes, there is TBills auction this week |
Re: Treasury Bills In Nigeria by dejiotus: 2:05pm On Mar 20, 2017 |
munezo: Many thanks for the information. Zenith bank messed me up last week despite quoting a rate of 18.25% for 364 days, which is less than the marginal rate. I was expecting the bank to add my little money to the amount the bank was bidding for. Was very upset when the bank offered 17.5% afterwards in contrast to 18% from GT bank and 18.3% from Stanbic for customers in roughly similar situations to myself. Members should let us know how the different banks are performing, as we are the mercy of these banks, with this rule of not being able to quote your rate if bidding less than 50M |
Re: Treasury Bills In Nigeria by chukzyfcbb: 2:41pm On Mar 20, 2017 |
sanerugwei:well its not dubious per we, but its you outsmarting them. Writing the amount to be invested in your form as 1million when infact you don't have up to 1million in the account because you know not all is needed is you forming sharp guy. let's take for instance someone with 40million in his account can place a bid of 50million at a discount rate of 20% for 364days. now if this rate is successful, it means 20% which is 10million will be paid upfront while his 40million in the account will be debited. at Maturity he gets back the 50million he indicated he invested plus his 10million upfront interest collected making a total of 60million!!! Now that's him using 40m at 20% to get 60million instead of originally investing his 40m @ 20% to yield a total of 48million so he outsmarted the system by gaining Awoof 12million I doubt this would work even at the gtb bank , I strongly doubt it because it will cause the CBN to generate fresh fund immediately to be paid to you as upfront interest instead of just subtracting it from your original invested sum( in the example above, 10m is the fresh fund they will have to generate while taking ur 40m) ......Just doesn't seem right |
Re: Treasury Bills In Nigeria by unite4real: 3:44pm On Mar 20, 2017 |
chukzyfcbb: This is completely false. If your account has N40 million and you bid to buy TB of N50 million for 364 days at 20%, the entire N40 million is debited from your account and on maturity, N50 million is paid back to your account. There is no smart N10 million anywhere to be added to make the N60 million you talked about. Remember that your account had N40 million. So if you bid for N50 Million at 20%, the N10 million upfront interest didnt remain in your account because your acount initially had N40 million and not N50 million. If your account had 50 Million, then the N10 million upfront interest will be in your account while N40 million is debited. There is no smart way that 20% yield will give you N60 million from N40 million. That's like saying you got yield of 50%. that is not true. There are two scenarios here scenario 1: You had N40 million in your account and you bid for N50 million at 20%. All the N40 million is taken and at the end of maturity, you are paid N50 million. Money moved from N40 million to N50 million. shikena Scenario 2: You had N50 million in your account and you bid for N50 million TB at 20%. N10 million interest is paid upfront and left in your account while N40 million is debited from your account. On maturity, N50 Million is paid back. If you reinvest your N10 million, you get N2 million extra which brings the total interest to N12 million. Money moved from N50 million to N62 million. None of these scenarios can make you up your money from N40 million to N60 million. 7 Likes |
Re: Treasury Bills In Nigeria by chukzyfcbb: 4:15pm On Mar 20, 2017 |
unite4real:thanks for the clarification, I just knee that it just didn't seem right to me. with your clarification now I get the clearer pic, and if others have invested using this style. I will like them to mention the name of the bank they went through. Someone said Gtbank, what other bank? 1 Like |
Re: Treasury Bills In Nigeria by unite4real: 4:18pm On Mar 20, 2017 |
chukzyfcbb: Diamond Does it too. I have done same more than 7 times within 6 month with them. Even Access does same thing. I think one should only avoid banks that will first of all debit your entire principal before crediting the interest afterwards. |
Re: Treasury Bills In Nigeria by jpphilips(m): 5:34pm On Mar 20, 2017 |
Lalaska: They will definitely unionize and make the kill, watch the fixed deposit rates to understand why the DMO has made a terrible decision, anyways, it will play out the bond's way at the onset. |
Re: Treasury Bills In Nigeria by jpphilips(m): 5:36pm On Mar 20, 2017 |
NL1960: It is not as simple as you think. |
Re: Treasury Bills In Nigeria by sanerugwei: 6:01pm On Mar 20, 2017 |
unite4real:Thanks boss, I couldn't have said it better. No free lunch anywhere, not even in Freetown. |
Re: Treasury Bills In Nigeria by ernie4life(m): 7:33pm On Mar 20, 2017 |
Hello house, what do you think will be the outcome of the next, MPC meeting? My take is they will try to keep things stable to ensure inflation keeps coming down this may probably mean maintaining the MPR. The focus will be more on FX, because that's what is holding FDI's from coming to the market. But I see rates coming down by Q3 so this may be a good opportunity to lock down your funds for long term(365 days Tbills). They want the rates down so that FGN savings bonds will be favourable. My thoughts |
Re: Treasury Bills In Nigeria by Timmi: 7:53pm On Mar 20, 2017 |
Source: nairametrics.com MPR: What The Predictors Think Will Happen news-team Chacha Wabara MARCH 20, 2017 Nairametrics| Financial experts are predicting that the Monetary Policy Committee of the Central Bank of Nigeria (CBN) is unlikely to change any of the key rates after its 2-day meeting which commenced this morning. Some of these predictions are quoted below. Bismarck Rewane, Chief Executive Officer, Financial Derivatives Company Limited. My projection is that they will do nothing; they will just wait and see. If I was there, I would get the interest rate down by one per cent, bring the CRR down by two per cent and putting more money into the foreign exchange market. That will be a major catalyst for economic activities. However, I think the prudent and safe thing that we should expect is that there will be no change for now. Bringing down interest rate has a risk element.- Johnson Chukwu, Chief Executive Officer, Cowry Asset Management Limited. I don’t expect the MPC to adjust the rates because the monetary authority will not want to inject naira liquidity into the economy at this point when they are succeeding in stabilising the naira exchange rate. I do not expect the monetary authority to react to the decline in inflation in February at this particular meeting. That, we expect, will happen probably at the May meeting when inflation would have gone down further and at that point, the naira exchange rate would have been better stabilised.- Also on Smooth FM this morning, ARM predicted that rate will remain at 14% and did not see any need for a rate hike or a drop. If these predictions turn out to be correct, it would be similar to the outcome of the January meeting where the Monetary Policy Rate (benchmark interest rate), Cash Reserves Ratio and Liquidity Ratio were retained at 14 per cent, 22.5 per cent and 30 per cent, respectively. Whatever the outcome though, we expect that it would be agreeable to both monetary and fiscal policy makers, who have just concluded a meeting over harmonization of economic policies. The meeting was attended by economic management leaders from the CBN and the Ministries of Finance, Budget and National Planning as well as Industry, Trade and Investment. This was in an effort to prevent contradictory actions that could stagnate the economic revival of the country. |
Re: Treasury Bills In Nigeria by ernie4life(m): 8:36pm On Mar 20, 2017 |
Timmi: Yea I think they will try to reconcile a few discrepancies between monetary policy and fiscal policy. Bringing down rates could affect the liquidity level which is major factor for raising inflationary rate. |
Re: Treasury Bills In Nigeria by Rizin: 8:52pm On Mar 20, 2017 |
chukzyfcbb: Thank you. Na your kind of person if not u, dey work for first bank. They will always advice that you invest on fixed deposit @3.25% pa as against 18.5% in TB If i have 50m and sign fin for 50m, you will return 10m to my account and use it to run your packages at the bank while i wait for the maturity of the other. If i have 40m and sign in for 50m, u will return my 40m and out of frustrations, i will leave the money in the account while u use it to run ur packages at the bank. how on earth can somebody invest 40m at 20% and the person gets 60m. even if the calculator is faulty. |
Re: Treasury Bills In Nigeria by Rizin: 8:59pm On Mar 20, 2017 |
unite4real: Thank you. Na ur kind of person, if not u, de work for gtb. u will always advice to invest all. this can even make somebody to invest his house rent or even children's school fees. @All please note that landlord or these schools can not wait 1yr for maturity. |
Re: Treasury Bills In Nigeria by zamirikpo(m): 10:35pm On Mar 20, 2017 |
DMO e no go better for una. please guyz, how does the secondary market work.......i tried to place a bid with sterling bank after i was told i could get upto 18% from the secondary market,but after writing the application and specifying the rate(18%) it was rejected. I was asked to apply again without specifying any rate....but that i could still get 18%. i warned my account officer to inform me about the effective rate before any debit is done. so guyz .....how does the secondary market work....dis my first time. |
Re: Treasury Bills In Nigeria by battleaxe: 3:02am On Mar 21, 2017 |
You do not determine a rate with the secondary market. Your bank typically will tell you the tenors and rates they have available, and you can then make a selection. If you specify a rate and none is available at that tenor or rate, then yes they would keep rejecting your forms. You cannot bid on the secondary market- just buy whatever is available. 2 Likes |
Re: Treasury Bills In Nigeria by zamirikpo(m): 7:41am On Mar 21, 2017 |
battleaxe: thanks man..........my fingers are crossed. |
Re: Treasury Bills In Nigeria by ihedioramma: 9:03am On Mar 21, 2017 |
Rizin: |
Re: Treasury Bills In Nigeria by ihedioramma: 9:07am On Mar 21, 2017 |
Rizin:so how much will he/she make ? remember he/she just gave example . |
Re: Treasury Bills In Nigeria by unite4real: 9:17am On Mar 21, 2017 |
Rizin: myopic thought. I am sure you understand multiple income stream and cash flow. The fact that we were analysing the use of all money in an account did not mean all the money from all other accounts including statutory fees. Who is talking of investing house rent and skool fees. are we talking about mmm here? I am glad my coupons from FGN Bonds pays my rent and children's school fees annually with left over to be reinjected. 4 Likes |
Re: Treasury Bills In Nigeria by NL1960: 9:25am On Mar 21, 2017 |
Is secondary market TB also done at a discount?. |
Re: Treasury Bills In Nigeria by Morounofolu: 10:15am On Mar 21, 2017 |
Hello House, I got 18.3% for 360 days yesterday from First Bank and i was informed they still have left over of the last bid at 18.1%. You may contact any First Bank branch around you if interested. 4 Likes |
Re: Treasury Bills In Nigeria by ihedioramma: 10:29am On Mar 21, 2017 |
unite4real:Please o teach me how FGN Bond pays your rent, school fees e.t.c and how i can start it examples please ? . |
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