ojesymsym:
Can simple email solve this? After all I have cscs number. By cscs did you mean NSE?

greenlilly:
Good day, Axa Mansard investment team sent me this response to a treasury bill investment enquiry. What is your take?


Good day Sir,

 

Thanks for your mail.

 

Treasury Bills rates have been taking a down turn. This is due to a CBN circular that now prohibits the purchase of treasury bills for individuals and local companies.

 

The Treasury bills available for sale are the Nigerian Treasury bills offered by the Debt Management office (DMO). The auction for these bills are held every two weeks and the rates for the recently concluded auction are below;

 

Tenor(Days)

DR

Yield (Net)

91

7.80%

6.900%

182

9.00%

8.370%

365

10.00%

10.060%

 

Please reach out for further clarifications.

zamirikpo:
All this talk about bonds in not sweeting me at all.

Am in love with that upfront interest on TB, nothing beats that.

My anger is not even the 8-10% on TB it's the prorating.

As a business man I need to be liquid.....cant afford to lock down huge capital for 3-5 yrs(20m &above). When anything can come up.

Watching the market daily....TB it is

emmanuelewumi:
Just got another money market fund from FSDH Asset Management at 12.2%. The returns will fluctuate between 10.5% and 12% for the next 4 months until when their Treasury Bills mature

zanga420:


TB nosediving everyday. It will get better sha.
Sorry this is off topic, how can I stop voice notes automatically downloading on my Whatsapp. I have disabled media autodownload and all, yet no headway.

olujaidi:


What's their expense ratio and management fee?

Nigsrdumb:
After several dealings with fbnquest, my suggestion is to avoid them completely if you want to invest in bonds , stanbic bank is better.

bendo75:


I agree with you. Few days ago, I created a new account. The FBNquest app is a total mess. I cannot update my employment or next of kin status or even do anything meaningful with the app. I sent an email since 2 days and no response.

kings11ng:

vodoonomics

Diyke4rich:
Good day everyone,

For the past three weeks now first bank have been saying there bid is unsuccessful on treasury bill I did ask them for FGN bond they refuse to help invest, saying they are not advice to do So, rather they are advicing me to fix my money with them. What shoulshould I do?

OgogoroFreak:
Take your money elsewhere.

chigo4u:

Same here lol, been reading to see if I would understand this bond thing but not yet, the whole thing is not adding up yet lol. I think I’ll wait for tbills while I focus on stanbic dollar fund for now. Without the prorating thing I would just stick to 91 days tenor with the low rates until it improves

Diyke4rich:


The problem is that I am not in the country

OgogoroFreak:
Use i-invest app if all else fail.

Those of you staying abroad should be the one using that app.

Diyke4rich:


What is the app all about?

Olamsoh:
Call 07000 2255 2727contact@cscs.ng

zamirikpo:


Abi....pls update me on this stanbic dollars fund thing. How does it work.

U1:
Good morning, sirs and madams. There are a couple of things I have been finding confusing and I wish someone could explain to me.

1. Do secondary market treasury bills attract higher charges?

I read somewhere on this thread where feelamong wrote:

'CBN approved 3 charges for Tbills Auction

Transaction Charge - 0.125% of the Earned Interest

Custody Fee - 0.1% of the Face value *no of days the Tbills is held in a year

Some Banks also charge N100 service charge per transaction'

In the post, he mentioned that a 91-day bill transaction worth N1 million would attract less than N400 in total charges.

But I have been repeatedly charged well more than N1,000 in total for an investment of about 400-450k for over a year now. Do different rates apply to secondary market bills?

2. Is there a way to recover investment through a custodian, if a bank one made a treasury bills investment through packs up? (Not praying any bank should go out of business, though).

Please enlighten me on these aspects. Thanks.


CC feelamong, emmanuelewumi, ukay2

olujaidi:

It can't. You'll see this message in the data and storage usage section in WhatsApp settings: "They are automatically downloaded for The best communication experience"

emmanuelewumi:
Just got another money market fund from FSDH Asset Management at 12.2%. The returns will fluctuate between 10.5% and 12% for the next 4 months until when their Treasury Bills mature

Diyke4rich:


The problem is that I am not in the country

katamo:

Correct. If you hold until maturity you do not lose any capital.

Let me try to clarify a bit more since it seems people still have a lot of questions. If you sell before maturity there are three things that can happen:

1. If the interest rate for newly issued similar bonds with the same time until maturity is greater than the coupon rate on your bond you will sell each unit at a lower price than you bought

2. If the interest rate for newly issued similar bonds with the same time until maturity is lower than the coupon rate on your bond you will sell each unit at a high price than you bought

3. If the interest rate for newly issued similar bonds with the same time until maturity is equal to the coupon rate on your bond you will sell each unit at a the same price that you bought

The principle is that investors will demand a return that is consistent with what the rate of return the market dictates at any point in time. As an investor, if you can buy a new issuance of 3-yr FGN savings bond at a today's yield of 11.296% (which is the same as the coupon rate since it is a newly issued bond at par), you will pay less for a 10-yr bond with 3 years left to maturity that only pays a coupon of 8% (example 1 above). However, you will be willing to pay more for a 5-yr bond with 3 years left to maturity that pays a coupon of 16% (example 2 above). If the coupon rate on the secondary market bond at the time the bond is sold is equal to the yield (or current coupon on new FGN bonds) you will pay the same price as what you would pay for the new FGN bond (par) since in reality, the payment schedule will be exactly the same as that of a new issuance, that is they are identical from a financial perspective since you are getting the same scheduled interest payments and return of principal at maturity (example 3 above).

Nigsrdumb:
After several dealings with fbnquest, my suggestion is to avoid them completely if you want to invest in bonds , stanbic bank is better.