₦airaland Forum

adegokekemi:
PLS which stanbicibtc branch will you suggest for TB in Lagos that r little bit friendly

MOM1:
Well think about it this way. Do you wish to take out the funds in your dorm for TB purpose only or you just want the profit on your principal? I think if you decide to save your principal back to your dorm. You could be running at a loss due to the changes in exchange rate.

Just my thought..

FKBZ:
Hello house,

Is 17.95% for 304 days a good bid.

My acct officer goofed and is telling me this is what is available.am thinking of transferring my money to Stanbic ,hoping to gets better bargain in the secondary market.

anitank:
Good morning.

I have two t-bills running and I'm so obsessed with having more that I'm thinking of taking out all the money in my dorm account to invest. My dorm account yields no interest for me hence this decision.

Who else thinks this is a good decision? Or not [/quote


[quote author=TONY56 post=58787196]Me think it's a nice decision expecially if you also reinvest the upfront interests and it's rolled over for at least two years.

Even if the exchange rate moves back to N450/N500 per Dollar, which is very unlikely, by the time you want your Dollar back, you will be buying more than you had because the profit you would have made in at least 2yrs would have more than cover for it.

Above is also just my thought too

anitank:
I thought about this already. Wanting just the profit and saving back the principal in USD would be a complete loss for me. The plan is to invest into TB full time with the money and keep compounding the interest as they come. Keeping the funds idle just for the sake of having a dorm is useless when i can make profit and still have my principal in naira. And like lancee said, I could have changed the money when it was at 490/$ and made double by now and I honestly feel terrible about it, but with TB I can definitely make up for the loss with time

TONY56:
Do you think it's static? You were simply lucky and it doesn't come like that every time. It depends on how desperate the owner is and it's availability

adegokekemi:
PLS which stanbicibtc branch will you suggest for TB in Lagos that r little bit friendly

TONY56:
Any Stanbic branch is okay. It all depends on the way you present yourself, your knowledge about what you want and of course your account officer who MAT not be happy that you're not doing Fixed deposit. But once he realises that you know what you want, he or she will pipe low.

In actual fact, in almost all banks, most of their staffs are not knowledgeable about NTB but they have one or two knowledgeable staffs at each branch for NTB and those ones will always do what you want.

adegokekemi:
PLS which stanbicibtc branch will you suggest for TB in Lagos that r little bit friendly

freeman67:
On your request to liquidate TB investment, your bank or investment house will either sell it to an intending buyer at the secondary market or absorb it if they have the cash at their disposal and willing to buy.


Note that charges is dependent on the financial institution you used.
G
However, either they decided to charge you or not you will not get your complete cash back again because you already got part of your money as interest upfront depending on the time of liquidation.

Also in your certificate, confirmation or proof of investment for first bank it is written below the charges that " in the event that you have to liquidate your investment prior to maturity date a penal charge will be applied based on the prevalent rediscount rate". For Stanbic it is not usually written but I believe on request you will be notified on the conditions before execution.

Personally I have never liquidated before maturity. I try as best as I can to measure my duration and other need for money before investment.

mindtricks:
Nice one. But please we will appreciate if anyone can present us the calculations what will apply in a typical scenario where one wishes to pull out money before time, using hypothetical figures, tenor, etc.

awesomeJ:
Say you bought 364 day bills of #1,000,000 at 18% discount. Neglecting bank charges, you will be paid an upfront interest of 180k, in which case your actual investment is 820k. You could either profit or lose if you terminate before maturity.

Note if you sell the 1,000,000 tbill and you get credited with less than 1 million, it doesn't necessarily count as a loss, so long adding the upfront interest to the termination proceeds gives more than 1 million, then you've profited.

The only instance when you make a real loss on the investment is when you only hold for just a short while, and on termination, you have to rediscount at a significantly higher rate.

These are 2 possible scenarios:

1. You hold for more time in the tenor-say 200days, and you sell at a discount which is equal to or less than you bought at. The portion of the interest that goes to the new buyer (1,000,0000*164*18)/(365*100)=80,870. This sum will be discounted from the 1,000,000.00 that you should get upon maturity, and so what you get back is 919,130. So considering that you actually put in 820Gs, your profit is 99,130 for the 200-day period. No loss.

2. If you hold the investment for only a short while say 60 days and the new discount that's bidded for your bills is significantly higher-say rates begin rise significantly , and now your buyer wants a discount of 25%
The interest accruable to the new buyer =(1,000,000*304*25)/(365*100)=208,000 approx.
Now pulling that from the 1,000,000 that you should get leaves you with only 792,000. Given that you originally put in 820,000 you will be making a loss of about 28,000 on the investment.

awesomeJ:
Say you bought 364 day bills of #1,000,000 at 18% discount. Neglecting bank charges, you will be paid an upfront interest of 180k, in which case your actual investment is 820k. You could either profit or lose if you terminate before maturity.

Note if you sell the 1,000,000 tbill and you get credited with less than 1 million, it doesn't necessarily count as a loss, so long adding the upfront interest to the termination proceeds gives more than 1 million, then you've profited.

The only instance when you make a real loss on the investment is when you only hold for just a short while, and on termination, you have to rediscount at a significantly higher rate.

These are 2 possible scenarios:

1. You hold for more time in the tenor-say 200days, and you sell at a discount which is equal to or less than you bought at. The portion of the interest that goes to the new buyer (1,000,0000*164*18)/(365*100)=80,870. This sum will be discounted from the 1,000,000.00 that you should get upon maturity, and so what you get back is 919,130. So considering that you actually put in 820Gs, your profit is 99,130 for the 200-day period. No loss.

2. If you hold the investment for only a short while say 60 days and the new discount that's bidded for your bills is significantly higher-say rates begin rise significantly , and now your buyer wants a discount of 25%
The interest accruable to the new buyer =(1,000,000*304*25)/(365*100)=208,000 approx.
Now pulling that from the 1,000,000 that you should get leaves you with only 792,000. Given that you originally put in 820,000 you will be making a loss of about 28,000 on the investment.

awesomeJ:
Say you bought 364 day bills of #1,000,000 at 18% discount. Neglecting bank charges, you will be paid an upfront interest of 180k, in which case your actual investment is 820k. You could either profit or lose if you terminate before maturity.

Note if you sell the 1,000,000 tbill and you get credited with less than 1 million, it doesn't necessarily count as a loss, so long adding the upfront interest to the termination proceeds gives more than 1 million, then you've profited.

The only instance when you make a real loss on the investment is when you only hold for just a short while, and on termination, you have to rediscount at a significantly higher rate.

These are 2 possible scenarios:

1. You hold for more time in the tenor-say 200days, and you sell at a discount which is equal to or less than you bought at. The portion of the interest that goes to the new buyer (1,000,0000*164*18)/(365*100)=80,870. This sum will be discounted from the 1,000,000.00 that you should get upon maturity, and so what you get back is 919,130. So considering that you actually put in 820Gs, your profit is 99,130 for the 200-day period. No loss.

2. If you hold the investment for only a short while say 60 days and the new discount that's bidded for your bills is significantly higher-say rates begin rise significantly , and now your buyer wants a discount of 25%
The interest accruable to the new buyer =(1,000,000*304*25)/(365*100)=208,000 approx.
Now pulling that from the 1,000,000 that you should get leaves you with only 792,000. Given that you originally put in 820,000 you will be making a loss of about 28,000 on the investment.

anitank:
Good morning.

I have two t-bills running and I'm so obsessed with having more that I'm thinking of taking out all the money in my dorm account to invest. My dorm account yields no interest for me hence this decision.

Who else thinks this is a good decision? Or not

Investnow2017:
Getting your money out of these Insurance forms from their savings policies comes with a huge price. The process is cumbersome immediately they notice you want to surrender your policy. I did one for 3years with mutual benefits. I ended up losing substantial some of money because i said i could not pay my monthly premium any more. Those insurance people just need your money. All the percentages they promised they would pay were all unfulfilled.
NEVER AGAIN WILL ANYTHING BRING ME CLOSE TO SAVING MONEY WITH INSURANCE FIRMS. They become mad once they notice that you have come to know that thing they know.

The story is a long one.

My colleague paid his premium for 40 months amounting to some N3.8m for a 5year policy. He is told that he would lose 10% of that sum for not allowing the policy to mature. The policy we noticed is so skewed that you earn some paltry interest at the last 2years of the policy life. But when selling it, they will deliberately refuse to disclose subtle details of the policy.

Too bad. In my own case i lost over N300k just to terminate a 5year policy for which i had even paid my premium for 3years and upfront till jan 2018 before i saw the rising trend with Treasury Bills. It was a very painful experience. Those guys are mean. They even give you the impression that you should be happy that afterall you are getting your money back! I am like did i say i was doing Ponzi? Was i not supposed to get my money back? Crazy indeed.

I know some have had their own ugly experience too with these insurance firms.

FKBZ:
He goofed because ,I had gotten the primary auction already @18.2 due to his negligence somehow,I wasn't debited but I was sent my bid receipt .which i called his attention to and he later apologised.its Gtb by the way.
Anyway my question is 17.95 percent good for 304 days.

dotcomnamename:
Ok i am desperate and i want to sell, would you buy my own at 577 daYS @ 10%

Investnow2017:
Getting your money out of these Insurance forms from their savings policies comes with a huge price. The process is cumbersome immediately they notice you want to surrender your policy. I did one for 3years with mutual benefits. I ended up losing substantial some of money because i said i could not pay my monthly premium any more. Those insurance people just need your money. All the percentages they promised they would pay were all unfulfilled.
NEVER AGAIN WILL ANYTHING BRING ME CLOSE TO SAVING MONEY WITH INSURANCE FIRMS. They become mad once they notice that you have come to know that thing they know.

The story is a long one.

My colleague paid his premium for 40 months amounting to some N3.8m for a 5year policy. He is told that he would lose 10% of that sum for not allowing the policy to mature. The policy we noticed is so skewed that you earn some paltry interest at the last 2years of the policy life. But when selling it, they will deliberately refuse to disclose subtle details of the policy.

Too bad. In my own case i lost over N300k just to terminate a 5year policy for which i had even paid my premium for 3years and upfront till jan 2018 before i saw the rising trend with Treasury Bills. It was a very painful experience. Those guys are mean. They even give you the impression that you should be happy that afterall you are getting your money back! I am like did i say i was doing Ponzi? Was i not supposed to get my money back? Crazy indeed.

I know some have had their own ugly experience too with these insurance firms.

vitality22:
Bros, now you are getting me seriously scared. I am also in this but in my case, they deduct 50,000 from my salary as a direct debit though its from another insurance company. Its been running for about 3 years now and its meant to run for 5 years.

TONY56:
The highest tenor is 364 days. I wonder where you got 577-day tenor and even if there is and you are desperate, then you should have offered it for 50% as that would have been for almost two years and not per annum.

vitality22:
Bros, now you are getting me seriously scared. I am also in this but in my case, they deduct 50,000 from my salary as a direct debit though its from another insurance company. Its been running for about 3 years now and its meant to run for 5 years.

vitality22:
Bros, now you are getting me seriously scared. I am also in this but in my case, they deduct 50,000 from my salary as a direct debit though its from another insurance company. Its been running for about 3 years now and its meant to run for 5 years.

Investnow2017:
Dear Client/Reader,

As analysts widely expected, the apex bank maintained the benchmark interest rate for the Nigerian economy at 14 percent. "In consideration of the headwind confronting the domestic economy and the uncertainty in the global environment, the committee decided by a vote of six to two to retain the MPR (monetary policy rate) at 14 percent," said Godwin Emefiele, the governor of the Central Bank at the recently concluded 257TH meeting of the Monetary policy committee.

The committee assessed the global and domestic economic and financial environments in the first six months of 2017 and the outlook for the rest of the year.
The committee noted that the global economy continued to gather momentum in H1 2017, aided by gradual recovery in the emerging markets on the back of a pick-up in global demand and relatively stable commodity prices, coupled with fairly robust domestic demand in the advanced economies although low levels of inflation in advanced economies still continue to trigger uncertainty about their monetary policy. In the domestic economy, it noted the positive effects of improved foreign exchange management on the performance of the manufacturing sector and other economic activities whilst also pointing out the presence of inflationary pressures coupled with the high level of unemployment.

Overall, the resolutions of the Monetary Policy Committee are to;
· Retain the Monetary Policy Rate (MPR) at 14%

· Retain the CRR at 22.5%

· Retain the Liquidity Ratio at 30%

· Retain the Asymmetric Window at +200 and -500 basis points around the MPR.


Thank you.





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