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Investment / Re: Treasury Bills In Nigeria by skydiver01: 7:20am On Apr 11 |
Tranquility2345: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 1:15am On Apr 07 |
civilserva: 1 Share
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Investment / Re: Treasury Bills In Nigeria by skydiver01: 4:51am On Apr 03 |
I am pretty confident the auction will hold/take place on 10 April 1 Like |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 5:38am On Mar 19 |
2036 FGN bond coupon payment received yesterday. 2 Likes |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 10:27am On Mar 10 |
1 trillion nellybadas: 1 Like |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 6:18am On Mar 05 |
Verified. Auction on Wednesday. Settles on Thursday gare2510: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 8:49am On Mar 02 |
Yes ooooo I don talk diversification tire Tranquility2345: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 5:50am On Mar 02 |
The 2nd Quarter NTB calendar is below 4 Likes 2 Shares
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Investment / Re: Treasury Bills In Nigeria by skydiver01: 8:22pm On Feb 23 |
The true yield is simply the discount rate applied to the actual amount invested. An example is below: If you purchase N10m of one year TBills at a discount rate of 18%, the amount invested/debited from your account will be cN8.2m because you get N10m at maturity. Then your true yield is N1.8m interest divided by N8.2m which is 21.95%. Your true yield is therefore your actual return on your investment being cN8.2m Hope you find the above explanation and example helpful gare2510: 2 Likes 2 Shares |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 9:22am On Feb 09 |
Hamachi: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 8:50am On Feb 06 |
You are welcome manwomanok: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 12:22pm On Feb 03 |
Fake News! UPDATED: No plan to convert domiciliary account dollars to naira, vow CBN, Finance Ministry BusinessDay February 3, 2024 https://businessday.ng/news/article/no-plan-to-convert-domiciliary-account-dollars-to-naira-vows-cbn-finance-ministry/ RayRay06677: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 1:45pm On Feb 01 |
Not my bond. It is manwomanok's bond Akerewe: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 10:32pm On Jan 31 |
Because the coupon rates, which are set at the time of issue, are always used to pay bonds at their nominal values (twice a year) till maturity. The yield is cN15% on your FGN bond 2027 purchase because the clean price is above the nominal price @ N103.07. You did not pay N12m at time off issue, you paid N12.4m (excluding accrued interest because you get this back) so your yield is c15% till maturity. Anyway, March 17 which is a Sunday is not far, so you will find out what your six monthly payments will be when your account is credited on 18 or 19 March, 2024 manwomanok: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 2:22pm On Jan 31 |
Precisely cN977,400 on c17th March & cN977,400 on c17 Sept of each year (inclusive of 2024) till the bond matures on 17 March 2027 manwomanok: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 12:34pm On Jan 31 |
Yes it is normal. Both the clean and dirty prices are below N100 Akerewe: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 12:06pm On Jan 31 |
The value of the NOMINAL VALUE will exceed (be more than) the CASH AMOUNT when the bid price of the bond rises and exceeds N109.15 on the secondary market Akerewe: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 11:02am On Jan 31 |
The units of bonds purchased is the nominal value divided by N100 (N12,000,000/100 = 120,000 units) manwomanok: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 10:51am On Jan 31 |
Yes it will be recovered NL1960: 1 Like |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 10:49am On Jan 31 |
I cannot explain it more than I have shown in the table below. manwomanok:
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Investment / Re: Treasury Bills In Nigeria by skydiver01: 9:49am On Jan 31 |
The nominal amount is the value of the bonds you were sold which will be paid at Maturity. The cash amount is the price you paid for each unit of the bond i.e., cN103.07 plus the accrued interest since the last coupon date - in this case the last coupon payment was made on c17 Sept 2023. The accrued interest from 17 Sept 2023 to 31 Jan, 2024 has to be paid by the buyer of the bond. That's what is called the dirty price - in this case being cN109.15. But don't worry about that because you get it all back (the accrued interest) at the next coupon date (in this case March 17, 2024). The dirty price simply includes the accrued to the settlement date of when a bond is bought/purchased. So the cash amount of cN13.1m is what will be debited from your account sometime today. Hope the above explanation helps. manwomanok: 3 Likes |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 9:38am On Jan 31 |
It simply means the price of the FGN bond maturing March 2027 was sold to you at cN103.07 (clean price). Because it is above the nominal price at the time of issue (N100) it makes your yield ~15% per annum till it matures (Maturity Date). manwomanok: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 6:29pm On Jan 29 |
For example, you can enquire from your bank, to start with, that you would like to buy monthly United States treasury bills (e.g. the 10, 20 or 30 years) and take it from there. Over time you will be in a position (unless you are already in a position) to open an account with an international Investment and Asset Management institution like Shroders who have been around for over 200 years. Shroders was founded in 1800. tundebasic: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 5:35pm On Jan 29 |
Correct 100%. I have been saying for quite some years now that, I think its best for us to have a diversified portfolio of investments that include various asset classes including FX denominated investments that pay returns in FX (coupons and dividends). Because, the devaluation of the Naira's trend has been with us for many years now. Such a portfolio can built bit by bit over time. For example, I think my first Naira investment many years ago was a one year N50,000 TBill purchase. The main point is to start as early as one can and invest with whatever one can and increase it over time but diversify. There are many FX denominated funds one can buy even from/via Nigerian banks. All you need is a domiciliary account and you are good to go. Another example, is there was time I was purchasing $50 of the funds every single month (not Naira $ Eurobonds). Over time it can become quite sizeable whatever the Naira does Tranquility2345: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 10:46am On Jan 29 |
Thank you and very precise 👍 I have never bought Nigerian Eurobonds in my life. Tranquility2345: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 4:23pm On Jan 27 |
Yes, I am. No I am not bald but have some grey hairs on my head. Tranquility2345: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 2:02pm On Jan 27 |
I am unperturbed. I made the FGN Naira bond investments with the sole objective of the coupons meeting my expenses in Nigeria which continues to hold true today even while the Naira has continued to fall. This is the reason I also made majority of my portfolio in FX investments. My two kids are out of university and in gainful employment. I have no rent to pay in Nigeria because my properties are fully paid for and I am paid rent on one of them. I will give you a simple example (though I have many) of why I am unperturbed. I live a simple life though I do enjoy myself with friends. However, in the last 10 years I have been unable to spend more than N6m a year on expenses. So, even if the Naira falls to N5,000 to the US Dollar, it simply cannot bother me in the least. This is why it is important to have a diversified portfolio. It is meant to balance out risks and continue to grow. I assure you I made a good investment in the FGN Naira bonds because it met and continues to meet my needs and objectives. My Naira investments were never based on an expectation of the Naira appreciating and I am not also interested in converting any of my FX investment's coupons and dividends into Naira - those are for my expenses when I am not in the country holidaying. I hope the above helps put into perspective your assumption of how I feel Tranquility2345: 5 Likes |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 10:14am On Jan 27 |
I am quite aware of the Naira's devaluation over 4 years. I am unaffected by it because of my dollar investments as far back as 15 years ago. The FGN bond coupons more than meets my annual expenses in Nigeria and that is super fine with me. Its called diversification. I have a well balanced diversified portfolio that includes FX investments that also pays both coupons and dividends in FX. Don't bother yourself about my FGN bond holdings. My FX investments has covered many times over the devaluation of my FGN Naira bonds you refer to. I am fine because of the benefits of having a diversified portfolio TotoNaRubber: 7 Likes 1 Share |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 5:42pm On Jan 26 |
My account was funded on 22 Jan, 2024 by the coupon payments of my FGN 2026 & 2034 bonds (compounding) RayRay06677: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 12:14pm On Dec 30, 2023 |
Be gentle but quite funny Happy New Year in advance to us all. Tranquility2345: |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 4:50pm On Dec 13, 2023 |
It means you will pay the offer price (N97.03) per unit purchased plus about 6 weeks coupon interest from 26 Oct 2023. Simplz Akerewe: 2 Likes |
Investment / Re: Treasury Bills In Nigeria by skydiver01: 1:32pm On Nov 01, 2023 |
👍💯 Life can be as simple or complicated as one chooses to make it. Even today, with all the devaluation and inflation that has occurred in Nigeria over the years, I still struggle to finish spending my annual coupons & dividends. Nevertheless, it is sensible to have some diversification in FX. RayRay06677: 8 Likes 1 Share |
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