airamuche:
Good Morning House, I was Credited 98,000 For 91days, principal Is 3million , rate is 13.15, stanbic ibtc , Gurus Am lost because 3,000,000 / 100 = 30,000 * 13.15 = 394,500 and what i got was 98,000 , Please enlighten Me

yimiton:
Please I need a response to my question.

I'll like to liquidate a 6 months Tbills in 3 months. How possible is that? what do I stand to loose? Can I just give them back the upfront interest and take my capital?

airamuche:
Good Morning House, I was Credited 98,000 For 91days, principal Is 3million , rate is 13.15, stanbic ibtc , Gurus Am lost because 3,000,000 / 100 = 30,000 * 13.15 = 394,500 and what i got was 98,000 , Please enlighten Me

luvinhubby:


From the primary or secondary market?

yimiton:
Please I need a response to my question.

I'll like to liquidate a 6 months Tbills in 3 months. How possible is that? what do I stand to loose? Can I just give them back the upfront interest and take my capital?

1Bishop:


You can [b]sell [/b]it in the secondary market, you'll only lose a fraction of the coupon (what you called the upfront interest) you got. Approach your agent, you'll surely not lose all.

luvinhubby:


You will get 394,000 if it was for 364 days, 90 days is 1/4 of that.

You are here too.

yimiton:
Thanks. I don't have an agent. I simply walked to a First Bank and asked to buy T.Bills. They sold for me at 18%. So, I'll return to the same First Bank with the T.Bills cert and tell them what I want. Hopefully, that will do.

inze:


You are here too.

punae:
fellow investors with the current high execess subscription on the tbills what are the chances of small net investors at the primary market?

Olarewajub:
Please, am I suppose to collect a treasury bill certificate from my bank?

Debbieallsmiles:
I went to Stanbic for Tbills, was given a form to fill on 15/9/2017 . Up until now, I have not been debited . what should I do?.I learnt about Tbills here and this is my first time doing Tbills and this is my first post here too.�

luvinhubby:


Some banks are better than others in this treasury bills bidding, Zenith is premium in the bids.

kristien4:
just previously everyone was shouting stanbic.. I run open stanbic account.. two failed auction now. And someone is shouting zenith again. Am tired of openning account. Maybe wen i move to zenith na.. they'll say acess bank is the best.. 364days t billsl na gold now.. Am tired!!

luvinhubby:


Such is life.

kristien4:
is it advisable to port to zenith for the next auction. Because am tired of these unsuccessful bids.

Alikote:
not really also lost 2 bids cos of over subscription for the one year paper by almost 400 bn ,our banks placed bid in above stop rate hence money bags from oversea won most of the bid ,this what the cbn wanted to attract since jan when rate hit 18.5 they refuse to come cos of fear of the naira might have drop when their investment mature ....example u convert 100,000 dollar to 36 m naira to buy treasury bills then after one year u try to convert 42 million naira to dollar and naira crashed to 500 your dollar is now 84 thousand dollars u have made a gross loss of 16000 dollar excluding fees of transferring money to Nigeria .

but with dollar reserve at 32 billion dollar and climbing crude prices ,peace in Niger delta ,OPEC exemption of Nigeria and futher cut in production by member and several hurricane this mix of positive sign that they monsters called hedge fund manager in emerging markets will eat up the one year paper and the cbn prefer that cost of dollar inflow to ease up exchange rate and inflation ,the might even double gain if the naira recover to 280-305 as planned by cbn hence 42 m naira profit /280 made from 100 k dollar investment will now be 150,000 dollar they can never get this in their develop countries .....for now if u have 50 m above u can place your bid at 16.3 in the next auction or through investment bank that will bid lower cos for now the over 300 bn left over last bid is still much available by this monsters to bid next week at 16.2 they have the volume to make a kill ...advice to comrade..the cbn has left small investors that stood by the Nigerian naira when going was bad for it ...now your option is look for secondary market bid of 17 percent for 300 day above or bid 6 months to reinvest with this ur average interest might be 14.5 to 15....... or buy up the sukku bond at 16.7 for 7 years and have peace and reinvest the bi annuall coupon on treasury bils NB typo error acknowledge ...

kristien4:
who dash me 50m. Fear no let me do sukuk,, soon they'll tell us sukuk fund is missing and PAYMENT will now be like pension.. where u will have to wait and wait. This is Nigeria. I prefer the T.B just like you have stated. 17% for 300days is impossible at this time. Stanbic gave me 15% for 309 days... lol. I vanish. Dats poor. Dnt you think my chances are better with zenith that has been winning bids instead of leaving it at stanbic hoping they get it right and waiting for another two weeks if eventually dey fail again? And you know,, the more time passes the more the rates drop... soon we'll be begging for 13% at 364 days...lol. you'll be surprised zenith receives expo from an inside man at CBN ... just thinking.. na naija we dey

olujaidi:


Have you heard of any time that FG has not honored payment on its own debt instrument? If you're scared of the Sukuk you might as well not do TB since na the same FG dey issue both.

CuteRedd:
Pls what are the benefits of bonds 7years bond at 16%
Doest that mean I will collect the profit at the time of investment then my capital is paid back after seven years. How is that a reasonable thing? Or I am missing something here?

What are the advantages of bonds?

katamo:


You do make a lot of valid points, sir, much of which I agree with. Having a balanced portfolio with mix of short-term T Bill and longer term government bonds is good as you can take advantage of the currently high T Bill rates and also lock in rates for longer terms in the bond market.
I beg to differ on a few things though. The point I made is more specific to the offered interest rate on the 2-year savings bond. I will not speculate on anything more than two years as that is too far out for anyone to predict where rates will go by then.
My view on investing is from a total return perspective so I am less concerned about frequency of interest payments versus my overall return when I compare investment options. As you probably know, total return will take into account different interest payment profiles and allow you compare oranges with oranges.
As I mentioned previously, the true yield on 1-year T Bills will need to about to almost 6.2% when you reinvest on one year for you as an investor to better off from a total return perspective. As you rightly pointed out, you have to go back as far as 2009 and 2010 (the period with the lowest T Bill rates in recent history) to find T Bill true yields below 6%. However, it is important to put this in the context of the economic environment prevailing at the time. The world was witnessing the worst financial crisis of our times which started in 2008 but really reach full scale in 2009 and 2010 and started to ease after that.
As you probably know, deposit and lending rates track the CBN monetary policy rate. Many countries across the globe engaged in large cuts to their benchmark interest rates in order stimulate their economies and keep themselves out of recession. This included us as well. CBN dropped the benchmark monetary policy rate from 10.25% in June 2008 to 6% by July 2009. This type of radical cuts to interest rates only happen in extreme situations. Typically the rates will change by 0.25% to 0.5% every couple of months when the monetary policy team meets. So I take any economic and financial analysis that relies on data from 2008 to 2010 with a grain of salt just given the situation at the time.
Currently, we are not in a period of economic shock so I certainly do not see 1-year T Bill rates going to 6% by this time next year. The benchmark MPR is currently at 14% since July of last year. Even though we were technically in a recession CBN has not cut the rates (likely because inflation is so high). The likelihood of a large cut between now and next year is very, very low.
My point is that I do not view the offered rate on the 2-year savings bong of 13.817% as attractive. I will take my chance with investing in 1-year T Bill because I view the reinvestment risk associated with T Bill rates as low as 6% one year from now as minimal.

kristien4:
Will you blame me for being afraid. Tb is 1year. Sukuk is 7yrs. T.b has been on for ages.. sukuk just came. No blame me..