harisclub:
After investing in treasury bill primary market, is there any certificate that will be given to the investor for proof of investment?

Yes, i received mine few days ago.

harisclub:
After investing in treasury bill primary market, is there any certificate that will be given to the investor for proof of investment?

Yes! I received mine today though i have done the investment like 2weeks ago. You can use the proof of investment to seek a loan (collateral) from banks or lending houses.

Fm4real06:

Yes! I received mine today though i have done the investment like 2weeks ago. You can use the proof of investment to seek a loan (collateral) from banks or lending houses.

that means every time you invest you should be given a certificate rite?

CuteRedd:
that means every time you invest you should be given a certificate rite?

Exactly! Even if u invest 10times u get proof of investment 10times.

That means I should go to the bank to request for the certificate or they will send it to my email?

harisclub:
That means I should go to the bank to request for the certificate or they will send it to my email?

They can send it by mail, but it needs to be signed by the authorised officers to make it authentic. So u still need to go to d bank and collect the signed copy.

Tnx

Fm4real06:

In the primary market, you are buying directly from CBN. The rates are unknown untill the final bidding. When filling the form for primary market, u can indicate the rate at which you want to invest in treasuy bills. Meanwhile it is better to go for a reasonable rate or else your bidding will be rejected. Although the minumum investment in primary market is 50million naira, but if you have below 50m, it means the commercal bank or investment house is adding your funds to the pool of funds they have and buying directly from CBN which means the bank will indicate their own interest.
In addition, you can only get 92days, 184days and 364days in primary market.

For secondary market, you are buying from an existing investor. Some1 that has invested may want to sell his investments, so u are buing from them through your commercial bank. That is why the rates are mostly juicy(good). Unlike primary market, you can get any tenor based on availability. E.g 60days 67days 188ays, 365days etc.
In the secondary market, u can invest with 100k to any amount all based on availability.

I hope i tried sha.

Yeah you did a wonderful job but there is no way anyone can get 365 days either in the Primary or Secondary Markets as the max tenor is 364 days which you can only get at the Primary Market.

Likewise, tenors available at the Primary Market does not include 92 & 184 days but 91 & 182 days as well as 364 days.

Fm4real06:

Yes! I received mine today though i have done the investment like 2weeks ago. You can use the proof of investment to seek a loan (collateral) from banks or lending houses.

you do t-bills at 18%
then go take a loan with it at 30%

how does that makes sense please?

RealityShot:

you do t-bills at 18%
then go take a loan with it at 30%

how does that makes sense please?

I wonder o and feel lost

[color=#000099][/color]

TONY56:


I wonder o and feel lost

lol....let's just assume his keyboard is faulty..

TONY56:


I wonder o and feel lost

lol....let's just assume his keyboard is faulty..

RealityShot:

you do t-bills at 18%
then go take a loan with it at 30%

how does that makes sense please?

This implies a net borrowing cost of 12%

Plus the funds could be used for projects with return in excess of 12%

olujaidi:

This implies a net borrowing cost of 12%
Plus the funds could be used for projects with return in excess of 12%

please explain more..
will the borrowed money exceed the investment by a lot?
How much can one get with say 100k t-bills proof?

Thanks.

What bank(s) will you advise me to purchase from?

Fm4real06:

Juicy rates goes thus:
50 to 60 days......15%-16%
92days.....18%
364ays....18.5%

Mind you most of these juicy rated can be gotten in the secondary market.

tolajay:
Thanks.
What bank(s) will you advise me to purchase from?

first bank or stanbic ibtc

RealityShot:

you do t-bills at 18%
then go take a loan with it at 30%

how does that makes sense please?

You must use the loan for a business or an investment you understand so well.

You just eating your cake and still having it. The average person uses a loan to buy a car, pay his rent, children's school fees, getting married, for vacation or to buy house hold appliances but a customer with a millionaire mindset uses a loan to get assets, projects, businesses or investments that can self liquidate the loan if you need more explanations on this I will definitely oblige you.

RealityShot:

please explain more..

will the borrowed money exceed the investment by a lot?

How much can one get with say 100k t-bills proof?

Money backed collateral are usually 120% of the loan, 100k will get you about 83.33k loan. 120k will get you 100k loan.

A loan of 100k at 25% for a year, you end up paying a total of about 115k it is a term loan will a monthly payment plan. But if it is an overdraft with a bullet payment plan you will make a total loan payment of 125k.

If you further explanation on this, I will do just that.

olujaidi:


This implies a net borrowing cost of 12%

Plus the funds could be used for projects with return in excess of 12%

You are right. The next question which the the uninitiated will ask, is why couldn't the person liquidate his TB and use the fund for the purported project?

emmanuelewumi:



You must use the loan for a business or an investment you understand so well.

You just eating your cake and still having it. The average person uses a loan to buy a car, pay his rent, children's school fees, getting married, for vacation or to buy house hold appliances but a customer with a millionaire mindset uses a loan to get assets, projects, businesses or investments that can self liquidate the loan if you need more explanations on this I will definitely oblige you.

Exactly my thought.

emmanuelewumi:



Money backed collateral are usually 120% of the loan, 100k will get you about 83.33k loan. 120k will get you 100k loan.

A loan of 100k at 25% for a year, you end up paying a total of about 115k it is a term loan will a monthly payment plan. But if it is an overdraft with a bullet payment plan you will make a total loan payment of 125k.

If you further explanation on this, I will do just that.

hmmm...
why not liquidate some or all of the t-bills and invest in whatever you think that loan can be used for?

RealityShot:

hmmm...
why not liquidate some or all of the t-bills and invest in whatever you think that loan can be used for?

Good question, you asked a question which 97% of bank customers will ask.

I suggest you get a book titled"Getting rich with other people's money" by Paul Sarnoff.

Currently have about 10 Treasury bills investments with staggered maturity periods.

I used one of my TB as a collateral for a loan of N1 million in July 2017, interest rate was 25% while the duration is for 1 year.
Monthly payment is about 95k for 12 months which will amount to N1.14 million, processing, management fees etc is 30k. At the completion of the loan payment, I would have paid N1.17 million.

I bought Zenith Bank shares with the loan @ N22, UBA shares @ N8.50, Lafarge WAPCO shares at N52.

Now Zenith bank is over N25, UBA is about N10, Lafarge WAPCO is N60.

I am expecting interim dividends from Zenith and UBA in 2 weeks time, final dividends from the 3 companies at the end of this financial year, as the country is getting out of recession I am expecting further capital appreciation.

I am enjoying both worlds of my TB investment that is running and the returns from my further investment in the capital market.

NB. Don't try this if you lack deep knowledge of leveraging and what you want to invest in.


If I liquidate my loan before the 12 months my financing cost will be lower.

Good Morning Sir,
Your well thought out loan analysis made my day. I usually have phobia for taking loan, but with your analysis, i need to take the bull by the horn.

However, i 'll need your guidance to navigate the financial terrain. I'll inbox you shortly.

Once again, thanks for your insightful analysis.


Good question, you a question which 97% of bank customers will ask.

I suggest you get a book titled"Getting rich with other people's money" by Paul Sarnoff.

Currently have about 10 Treasury bills investments with staggered maturity periods.

I used one of my TB as a collateral for a loan of N1 million in July 2017, interest rate was 25% while the duration is for 1 year.
Monthly payment is about 95k for 12 months which will amount to N1.14 million, processing, management fees etc is 30k. At the completion of the loan payment, I would have paid N1.17 million.

I bought Zenith Bank shares with the loan @ N22, UBA shares @ N8.50, Lafarge WAPCO shares at N52.

Now Zenith bank is over N25, UBA is about N10, Lafarge WAPCO is N60.

I am expecting interim dividends from Zenith and UBA in 2 weeks time, final dividends from the 3 companies at the end of this financial year, as the country is getting out of recession I am expecting further capital appreciation.

I am enjoying both worlds of my TB investment that is running and the returns from my further investment in the capital market.

NB. Don't try this if you lack deep knowledge of leveraging and what you want to invest in.


If I liquidate my loan before the 12 months my financing cost will be lower.[/quote]

Thanks Kam045 for your kind words, I saw PM but as a matter of personal policy I don't usually respond to PMs. Kindly ask your questions here, so that we can all learn and contribute.

Oga abeg, how can small players benefit? Do you need to be a financial analyst before you can gain?

emmanuelewumi:



Good question, you asked a question which 97% of bank customers will ask.

I suggest you get a book titled"Getting rich with other people's money" by Paul Sarnoff.

Currently have about 10 Treasury bills investments with staggered maturity periods.

I used one of my TB as a collateral for a loan of N1 million in July 2017, interest rate was 25% while the duration is for 1 year.
Monthly payment is about 95k for 12 months which will amount to N1.14 million, processing, management fees etc is 30k. At the completion of the loan payment, I would have paid N1.17 million.

I bought Zenith Bank shares with the loan @ N22, UBA shares @ N8.50, Lafarge WAPCO shares at N52.

Now Zenith bank is over N25, UBA is about N10, Lafarge WAPCO is N60.

I am expecting interim dividends from Zenith and UBA in 2 weeks time, final dividends from the 3 companies at the end of this financial year, as the country is getting out of recession I am expecting further capital appreciation.

I am enjoying both worlds of my TB investment that is running and the returns from my further investment in the capital market.

NB. Don't try this if you lack deep knowledge of leveraging and what you want to invest in.


If I liquidate my loan before the 12 months my financing cost will be lower.

RealityShot:

you do t-bills at 18%
then go take a loan with it at 30%

how does that makes sense please?

Lol.This is how it works. Lets say u seek a loan of 1million naira and ur investement in tbills is 5million naira, the bank will know that you are credit worthy when they see your proof of investment.

You may decide to seek a loan in addition to ur upfront interest in NTB if u think your interest alone can not solve the financial plan you want to execute.

When banks see the proof of investment in NTB, they would give u loan provided the loan you seek is within reasonable amount compared to ur investment in NTB and Treasury bill is highly secured(they know u will gt ur money back)

Happyfellow147:
Oga abeg, how can small players benefit? Do you need to be a financial analyst before you can gain?

Read good books on legitimate investments, become knowledgeable in finance and business. Become interested in business/economic news, visit informative threads on Nairaland.
Visiting this thread and investing in Treasury Bills is a good way to start building your wealth.

emmanuelewumi:



Good question, you asked a question which 97% of bank customers will ask.

I suggest you get a book titled"Getting rich with other people's money" by Paul Sarnoff.

Currently have about 10 Treasury bills investments with staggered maturity periods.

I used one of my TB as a collateral for a loan of N1 million in July 2017, interest rate was 25% while the duration is for 1 year.
Monthly payment is about 95k for 12 months which will amount to N1.14 million, processing, management fees etc is 30k. At the completion of the loan payment, I would have paid N1.17 million.

I bought Zenith Bank shares with the loan @ N22, UBA shares @ N8.50, Lafarge WAPCO shares at N52.

Now Zenith bank is over N25, UBA is about N10, Lafarge WAPCO is N60.

I am expecting interim dividends from Zenith and UBA in 2 weeks time, final dividends from the 3 companies at the end of this financial year, as the country is getting out of recession I am expecting further capital appreciation.

I am enjoying both worlds of my TB investment that is running and the returns from my further investment in the capital market.

NB. Don't try this if you lack deep knowledge of leveraging and what you want to invest in.


If I liquidate my loan before the 12 months my financing cost will be lower.

Nice one! But i heard nigeria stock market has crashed, that it is no longer juicy as it used to be. Pls can u explain further on how u are leveraging and which company to invest in. I would have sent pm for more understanding but u can explain here. Thanks in anticipation.

Fm4real06:

Nice one! But i heard nigeria stock market has crashed, that it is no longer juicy as it used to be. Pls can u explain further on how u are leveraging and which company to invest in. I would have sent pm for more understanding but u can explain here. Thanks in anticipation.

Please don't let us derail this thread, there is a thread for that.
The most important thing in stock market investment is knowledge, I will advice you to improve your financial intelligence and financial education while doing this invest in the safest investment ie Treasury Bill .
Start with mutual funds, as your knowledge about company valuation, earning per share, profit, basic accounting ratios, shareholders funds, ROE, net asset per share increases you may consider capital market investments.

emmanuelewumi:


Please don't let us derail this thread, there is a thread for that.
The most important thing in stock market investment is knowledge, I will advice you to improve your financial intelligence and financial education while doing this invest in the safest investment ie Treasury Bill .
Start with mutual funds, as your knowledge about company valuation, earning per share, profit, basic accounting ratios, shareholders funds, ROE, net asset per share increases you may consider capital market investments.

All these financial ratios and you mentioned i know it in book but to practicalise itis the issue. I am an ICAN professional student and i have a good background in Ratio analysis

Fm4real06:

All these financial ratios and you mentioned i know it in book but to practicalise itis the issue. I am an ICAN professional student and i have a good background in Ratio analysis

I am not an accountant but a scientist, who started investing about 25 years ago while in the University.
I learnt the little I know from books, successful investors, developing keen interest in the economy, from the street ie Broad street and Customs street Marina Lagos.

You have an edge in finance and investment matters as a chartered accountant in the making. Try to practicalize what you are learning in Financial management, corporate finance, financial accounting, investment analysis etc.they will come handy when you hit the street and start building your net worth.

Behind every rich man is an accountant, accountants should not only assist others in making money they can legally make make money themselves with the right knowledge.

Aliko Dangote does not joke with Olakunle Alake FCA, Olakunle is definitely a Naira multi billionaire and also an employee or salary earner.

RealityShot:

please explain more..

will the borrowed money exceed the investment by a lot?

How much can one get with say 100k t-bills proof?

Usually, banks require collateral that exceeds the value of the loan.