olujaidi:


Moot point

oohh.. u meant smooth point. Yeah.. really they are smooth.

michael03:
Pls house is there goin to be an auction dis coming Wednesday cos sinc is biweekly ther was one on 13th so I tink there should b one dis Wednesday 27th but am surprised there was one again dis last wk Thursday 21st pls can someone xplain beta?

Hi. TB market is generally biweekly, but we have the odd times when there is auction on two consecutive weeks. It will be advisable to peruse the attached TB market timetable for future market dates.

Secondary market rates as at Friday last week in First bank was 181 days @ 16.5%, 90days @ 13%

The rates v really dropped ohh

dotcomnamename:
Just got this for a friend: 13% for 87 days with 500k invested. Can someone calculate the profit without capital? And does it make sense?

Ur interest shld be about 15k for d 87days period. Its not bad considering d fact that if u leave that same amount idle in your savings account, u ll get less than that within that same period.
Hope this helps..

gabby18:
Secondary market rates as at Friday last week in First bank was 181 days @ 16.5%, 90days @ 13%

The rates v really dropped ohh

This is a good deal IMO. Wait till you see what the next auction brings

lilee2hot:


This is a good deal IMO. Wait till you see what the next auction brings

The last time I did tb was early this year and d rates were as high as 18.5% for about 180days... Was surprised it dropped that way..
Its like fbn quest Money market fund rates (mutual funds) are more appealing at the moment... It hasn't gone below 18% this month of September..it even touched 20% see link below

https://www.fbnquest.com/asset-management/fund-prices/mutual-funds-yield-history/historic-yield---september-2017

awesomeJ:

It just excites me to read great analysis from brilliant minds such as this. Kudos sir.

Thank you sir.

I have learned a lot from many people on this board. Hopefully, some of my perspectives will help others as well.

dejiotus:

Hi. TB market is generally biweekly, but we have the odd times when there is auction on two consecutive weeks. It will be advisable to peruse the attached TB market timetable for future market dates.

thanks frd I appreciate

Deepwater is back!!!

So where are we....

gabby18:


The last time I did tb was early this year and d rates were as high as 18.5% for about 180days... Was surprised it dropped that way..
Its like fbn quest Money market fund rates (mutual funds) are more appealing at the moment... It hasn't gone below 18% this month of September..it even touched 20% see link below

https://www.fbnquest.com/asset-management/fund-prices/mutual-funds-yield-history/historic-yield---september-2017

We should be careful when we compare T-bills to money market funds (MMF).

The accurate way to compare them from a rate of return perspective is to look at true yield of the T-bill versus the yield of the MMF. A 17% marginal interest rate for a 364-day T-bill equates to a return of ~20.5%.

There is also the issue of different risk profiles between T-bills and MMFs. MMFs invest in short-term government securities such bankers acceptances, commercial paper and CDs in addition to T-bills. These other instruments have higher risk and therefore should provide higher returns to reflect the additional risk.

You have to also consider fees charged by the funds. I think FBN charges 0.75% for their MMF. This will also be a reduction to you return.

Finally, the yields shown on the link are based on historical performance. As T-bill rates decline, this will also result in MMF yield declining as well. The current primary rate reflect the returns investors are going to achieve over the next 90, 180, 364 days (that is they are forward-looking) and not historical like what FBN is presenting.

Ultimately, the return on MMFs will be a bit lower than that of T-bills. If you are a passive investor and don't want to be bothered with managing your T-bill investments and would rather have someone else do it for you, then investing in a MMF is a viable alternative.

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 ...

Alikote baba! That was brilliant. You see why you are so cherished here. More

deepwater:
Deepwater is back!!!

So where are we....

We are inside deep water of TB rate.

I was just offered 15% for 303days in Stanbic
I want to invest 2m.
Is it a good rate guys ?

Am afraid of a another failed bid

conyema12:
I was just offered 15% for 303days in Stanbic
I want to invest 2m.
Is it a good rate guys ?

Am afraid of a another failed bid

15%? My God!

conyema12:
I was just offered 15% for 303days in Stanbic
I want to invest 2m.
Is it a good rate guys ?

Am afraid of a another failed bid

Too poor, keep shopping for another rate

elpiro:

Too poor, keep shopping for another rate

Thank you

deepwater:
Deepwater is back!!!

So where are we....

Where else? Inside the Deep Water of nosediving rates

conyema12:


Thank you

That's if there are any other shops offering higher rates.

Lets brace for the reality as it comes..

Hello guys,

Can one be paid the interest at maturity in secondary market? Or is it only paid upfront?

BREAKING: As Expected, CBN Retains Benchmark Rates at 14%
https://www.businesspost.ng/2017/09/26/breaking-expected-cbn-retains-benchmark-rates-14/

Panic as CBN Probes Bank MDs, Directors over Huge Non-Performing Loans
https://www.businesspost.ng/2017/09/26/panic-cbn-probes-bank-mds-directors-huge-non-performing-loans/

dipoolowoo:
BREAKING: As Expected, CBN Retains Benchmark Rates at 14%
https://www.businesspost.ng/2017/09/26/breaking-expected-cbn-retains-benchmark-rates-14/

Panic as CBN Probes Bank MDs, Directors over Huge Non-Performing Loans
https://www.businesspost.ng/2017/09/26/panic-cbn-probes-bank-mds-directors-huge-non-performing-loans/

what does the 14% benchmark mean?

kristien4:
what does the 14% benchmark mean?

14% benchmark is the rate at which CBN give out loan to commercial bank. It then means that commercial banks cannot give out loan to businesses below the 14%benchmark

Another Economic Crisis Looms over CBN “Reckless Funding of FG”
https://www.businesspost.ng/2017/09/26/another-economic-crisis-looms-cbn-reckless-funding-fg/

dipoolowoo:
Another Economic Crisis Looms over CBN “Reckless Funding of FG”
https://www.businesspost.ng/2017/09/26/another-economic-crisis-looms-cbn-reckless-funding-fg/

Exactly why i advise everyone to hedge against Naira assets! Make sure you have diversified your investments and earnings from only NAIRA!

I learnt some bitter lessons from the last devaluation and vowed never to be caught off guards again..

All Emefiele has been doing is Quantitative easing,..... which in lame man terms is PRINTING MORE MONEY FOR THE FG.

If the Price of Oil does not get to $80 in the medium term... we are doomed!

be warned!!

You cannot liquidate.
You have to wait.
All will be well.

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?

feelamong:


Exactly why i advise everyone to hedge against Naira assets! Make sure you have diversified your investments and earnings from only NAIRA!

I learnt some bitter lessons from the last devaluation and vowed never to be caught off guards again..

All Emefiele has been doing is Quantitative easing,..... which in lame man terms is PRINTING MORE MONEY FOR THE FG.

If the Price of Oil does not get to $80 in the medium term... we are doomed!

be warned!!

in a Lay man word we should have some saving in dorm accounts in dollar,euro,pounds and buy Gold and store is that what u mean

feelamong:


Exactly why i advise everyone to hedge against Naira assets! M[b][/b]ake sure you have diversified your investments and earnings from only NAIRA!

I learnt some bitter lessons from the last devaluation and vowed never to be caught off guards again..

All Emefiele has been doing is Quantitative easing,..... which in lame man terms is PRINTING MORE MONEY FOR THE FG.

If the Price of Oil does not get to $80 in the medium term... we are doomed!

be warned!!

Pls expatiate on this diversification from naira investment.

Alikote:
in a Lay man word we should have some saving in dorm accounts in dollar,euro,pounds and buy Gold and store is that what u mean

In addition to ur question. Does the CBN take treasury bills or bonds in dollars locally.

I mean can I change my naira to dollar and then buy local bonds or even treasury bills.

zamirikpo:


In addition to ur question. Does the CBN take treasury bills or bonds in dollars locally.

I mean can I change my naira to dollar and then buy local bonds or even treasury bills.

not locally they place the euro bond @ 7 percent

buy up some old gold ,melt it up to bars and safe kept or used your interest for tb to buy up some dollar position