Crypto Fans, Portugal is calling Zero% tax plus payment acceptance.

The ‘Bitcoin Family’ immigrates to Portugal for its 0% tax on cryptocurrencies

https://www.cnbc.com/2022/02/06/bitcoin-family-moves-to-portugal-crypto-tax-haven.html

All valid points. That is what some investing is about - taking risks with the objective of making money. One concern I have is not bitcoin as an asset class but the vulnerability of bitcoin/crypto wallets to theft. Plus I still suspect most global central banks will not allow any crypto asset to be used as an alternative to their currencies as a means of payment. As such, I expect cryptos will fade out in the coming years following more regulation. Right now and up till now its been a cowboys markets. India & China have banned cryptos and I expect more large countries will follow. Nevertheless, I wish all investors great fortunes from whichever assets they to invest in.

jedisco:
I consciously stayed off discussions on this pullback here as I didn't want to go repeating most of what I said in late May last year. At that time we had multiple threads on fp on how bitc0in wrecked folks, same also here mostly by those who didn't own bitc0in. I said something then and I'd repeat it now,

At 30k usd, the way I see buying bitc0in as a Nigerian is simple. If I buy 0.5 bitc0in for about 10 million naira, I can put that bitc0in in a savings account and earn interes of between 5-8% apr on it.

Add that to the fact that devaluation of the naira has been ongoing. If the naira devalues at 10% per annum against the dollar (as has been the case) and the value of bitc0in remains same, then thats about 16% per annum on my bitc0in naira value.

Finally, if within the next four years, bitc0in sells for 70kusd (an extremely modest estimate), I can decide to liquidate my holdings for a handsome profit.

Same will hold true whether bitc0in goes to 20k usd tomorrow or not. To me, the risk comes with not owning bitc0in

Kindly find below.

kisszhira:
What's the tbills' rate for today's auction

Happy days Time to compound once again Next stop July 2022.

skydiver01:
The next coupon for 2034 is due today 18 Jan which I expect by COB and the 2026 is due on Saturday 22 Jan which I expect on Monday 24 Jan COB.

Excellent & Good luck with your purchases. Also please do make sure you use platforms or companies that will not disappear with your acquired Bitcoins just like many have done recently.

Foodempire:


Some people still believe is the right time to buy, I inclusive.

Meanwhile, Bitcoin is down ~50% over the last 3 months. Russia announced a few days ago that it intends to ban cryptocurrencies (trading and mining) like China and India who have banned cryptocurrencies resulting in Bitcoin falling from ~$68k in November 2021 to currently ~$35k. Ouch... I imagine the party will truly be over when Europe implements its intention to ban them all.

Re: the bolded:

I think it is really a question of supply, demand and the size of the offer at any given time. The N250b Sukuk 10 year offer's marginal rate was increased to 13%, I believe, because of the size of the offer to be filled which was also extended by a day. Yesterday's auction was for a smaller size of N75b over 20 years. If the bond offer was N200b for example? Then the marginal rate would have been about c14-14.5% to fill it. This may suggest the DMO is attempting to bring down long-term borrowing costs/rates.

They may or may not be successful, since one key to achieving a reduction in long-dated FGN bond rates is to borrow less (reduce the amounts on offer) since there is currently a demand for longer-dated bonds e.g. at yesterday's auction, N214b was chasing N75b on offer (20yr) i.e., almost 3:1

If I were the DMO, I would have reduced the amount on offer rather than allot more than was offered (N89b) since amounts on offer are subject to change. But, hey, what do I know? The CBN and DMO have baffled me for years now e.g. the CBN sending 1yr TBill rates to 2% when inflation was 15%. Their reason? - to send the excess liquidity into the real economy... and then back up to 8% and then back down to c5.5% at the last auction. Suffice to say the bond markets responded accordingly

jabolo:


Yes, my bad, just saw that was a re-opened bond so pricing will reflect the yield with coupon maintained. Thanks.

I'm on oversight overdrive on DMO weird pricing - comparing that new issue 20 year bond coupon to the 10 year Sukuk.

Below is yesterdays bond auction result

Personally, the yields offered are not attractive to me but they me be to you. I usually prefer to communicate the rates/yields (price) that is attractive to me which if accepted saves one the hassle of opening new accounts with other banks/brokers. Hence my earlier response/recommendation. Nevertheless, I would seek yields in the table plus at least 60 basis points at this time. Later in the year, being an election year and Nigeria's deficit requiring more borrowing, yields may increase.

YESSConsulting:
Thanks, but you did not seem to touch on my question and request.

The next coupon for 2034 is due today 18 Jan which I expect by COB and the 2026 is due on Saturday 22 Jan which I expect on Monday 24 Jan COB.

If the rates/yields are attractive to you then proceed. If they are not attractive to you, then communicate what is attractive to you since you already bank with them.

YESSConsulting:
Hi guys, please what do you think about these rates offered by my bank? If available, please kindly recommend a better alternative

Kindly find below results of todays NTB auction.

yinkaoke:
Hello great people

Please who has the last treasury bills auction result?
Thanks

The income tax is now applicable to income from bonds held by corporates and not those held by individuals. Furthermore, capital gains tax (CGT) is applicable to equity sales by both individuals & corporates

https://pwcnigeria.typepad.com/tax_matters_nigeria/2022/01/taxing-times-you-may-be-liable-to-tax-on-your-previously-exempted-investment-income-effective-from-t.html?utm_campaign=5a78693e94a32673ae004919&utm_content=61d1d17515103c00015f1f64&utm_medium=smarpshare&utm_source=twitter

Akerewe:
APC has done it again, which tax b this one again after all the deductions from fixed income holders

My response above is in line with the response you have received from the bank. The bond matures in Feb 2028. I assumed the N1.5m included accrued interest from August last year. The next six months interest payment occurs next month (23 Feb 2022). The repayment of principal (face value) is paid on 23 Feb 2028. There is no principal repayment before this date if held to maturity.

Akerewe:

But from the analysis sent to me, this coupon will still be paid by 2028 feb+Aug and also repayment of the principal. How could the principal repayment b Feb according to ur explanation nd the coupon be extended to August?

Principal repayment (face value) in Feb 2028 is ~N1,221,621.02 (you bought at a premium - N118) and total interest earned over 6 years is ~N1,024,695.71 + accrued interest since August 2021 of ~N85,391.31 which will be paid next month.

[quote author=Akerewe post=109103195][/quote]

The info you require is in the table below to 31 December 2021.

Akerewe:


Below is their response as regards the coupon rate

An apt caption.

I think most of the Tbill purchases are from people, companies, financial institutions or MDAs that have approved (currently idle but committed) funds for capital expenditures and payment to vendors over the next 12 months. So, technically their hands are tied. Thus, even if TBills rates fall to 1% they have to buy TBills (or fix the funds in comparative fixed deposit accounts) to generate some income from the idles funds. Conversely, even if multi-year FGN bond yields hit 25%, they are also unable to buy these bonds with the idle funds because of potential loses if sold before maturity as well as large transaction costs from the spreads on the secondary markets. This situation is one I have seen so many times over the last 2 decades. Someone here recently said that we can't know it all. That is why, whilst it is always a good idea to ask questions, it is equally important to keep an open mind to answers received or suggestions provided.

I mentioned last year that it would be wonderful if the use of insulting languages and words are avoided with the exception of sarcasm and jokes (laughter is good for the soul), so we can continue to learn from everyone's contribution. It is equally important not to make false accusations of anyone you have not met. When falsely accused, some people will turn the other cheek (which I recommend) whilst others will not which is equally their right. I think the events/posts of the last few days demonstrates this.

Life is indeed a lifelong learning journey and I do hope we can continue to learn from everyone's contribution.

emmanuelewumi:



Can't believe people are still buying 365 days Treasury Bill at 5%.

Afrinvest packaged a commercial paper for a major player in commodity trading at 16% per annum

Yields have an inverse relationship with bond prices. When the yields fell, bond prices rose materially over the period referenced. The yield of the bond was not 60%, the capital appreciation of the bond was. You can check FGN bond closing mid prices daily on FMDQ as well as TBills on the secondary market. https://www.fmdqgroup.com/fmdq-exchange/market-information-data/

creategist:

Please are yields actually able to return up to 60% on FGN bonds? Please pardon my ignorance but it sounds so much! And could you kindly point me in the direction of the portal or site through which you monitor these fluctuations in yields of same bonds. Thanks for this piece of education.

Good questions below being that time of year one reflects on the year and perhaps make new or adjusted plans for the future.
Re: investments, my responses below would most certainly be boring.

emmanuelewumi:
What are our investment mistakes in 2021?

Perhaps not selling some FGN bonds (2034) when yields hit record lows between November 2020 and February 2021 for about 60% profit. This unrealised profit could have been used to buy more in the following months after yields rose again later in the year. But not complaining - still proceeded to compound the coupons.

What are the Investments and businesses that gave us the best returns in 2021?

As was done in prior years, buying more equity with dividends and more FGN bonds with coupons which have been increasing their yields annually. But I would add that by far the greatest return from 2020 to 2021 were FX & FX equity holdings (e.g. Tesla, Nvidia, Chevron, Exxon etc).

What are our investment plans for 2022?

For 2022, though pleased with the diversified portfolio, one may explore selling a real estate property (Abuja) to reduce tenancy stress and perhaps increase the dividend equity holdings, FGN bonds or FX. Will decide in Q1 2022.

2022 also being a year before the elections, increased perceived investment risk may be given to Nigeria which may present opportunities to invest at lower levels which will be good if one continues to take a long-term view. Well, its not long to find out.

Wishing us all an excellent 2022 and beyond.

Totally agree. I assume you meant 'should not be more than 50%' of your networth.

emmanuelewumi:



You take loans when you see opportunities, the debt should be more than 50% of your Networth and you have enough passive income to liquidate the debts at the shortest possible time of about 2 years

Sure. But it also depends on what you want out of life. My debt taking days are over at 50+. Took lots of debt in the past (all paid back) to grow the size of ones investments just as profitable and well managed institutions have done since time immemorial.

emmanuelewumi:
Do you agree with him?

It is not a stupid idea since expected coupons/dividends etc more than covers the short-term interest.

Personally, I am giving this Sukuk a miss at this time and will simply wait for Jan and March 2022 to do my compounding with purchases from the secondary market. Besides, I already have bonds maturing in c14 years (July 2034) that already yield 13+% per annum.

emmanuelewumi:
Even this 12.8% Sukuk, I used my fund and also got a loan at 22% to add to my fund and Invest in Sukuk 4

Some might think that was stupid. The loan is a 6 months loan, although I will be able to liquidate it by April 2022 because dividends and coupons are expected to be paid between February and March.

At 22% per annum, interest to be paid in 4 months is about 7.3% and I will earn 12.8% for the next 10 years

Yes the charges are normal though sometimes you may be given a discount which is usually volume dependent.

Akerewe:


12.40% FGN MAR 2036 (FG132036S2) at a clean price of 101 and Dirty price of N104.23

I just want to know if the charges are normal! Yes it's les than 1%. I actually got 1.5m worth of bond then

You can purchase them from the secondary market daily (excluding weekends and public holidays). I think N100k minimum. Your bank or broker can process this for you.

Ojix85:


Can you kindly advise how one can purchase FG Bonds without having the 50m capital? (Retail purchase)

Thanks.

Seasons greetings.

For those of us holding FGN bonds which have been more attractive than NTBs for quite sometime now and still is, don't forget that January and March 2022 is round the corner. This is a subtle reminder to compound then if expenses allow.

Wishing us all a wonderful festive season.

skydiver01:
Kindly find below todays NTB auction results.

Kindly find below todays NTB auction results.

Lovelynife:
dobnina you don buy am ooo. See how frustrated people don dey react on top your matter. It is well ooo

Kindly find below todays NTB auction results.

They are the same in that they are both FGN bonds with these two individual qualities:

1. FGN Savings Bonds are issued for two and three year durations on subscription and the interest is paid quarterly.
2. FGN Bonds offer a cocktail of durations up to 30 years and the interest is paid semi-annually.

Re: ROI - you will find that the yields are typically higher the longer the bond duration is and vice-versa.

Akerewe:
Pls house, what is the difference between FGN BOND & SAVINGS BOND ?? Nd which one is better in term of ROI

Kindly find below results of todays NTB auction.

I agree with you and your suggestions 2,000,000% not just 100%.

ultron12345:


I support you on the neccesity of capital punishment in Nigeria that is enforced. However, it is not so appropriate for less heinious crimes like jumping queues and littering.

For such crimes,i would recommend corporal punishment. "Judicial Flogging".

All those miscreants who jump queues, litter, request for bribes to do their jobs, bypass meters, disobey traffic rules, vandalize public property (just minor ones oo, major vandalization such as pipelines, transformers and those people that steal manhole covers in Lagos should warrant capital punishment) should be apprehended, charged to a specialized mobile court on the same day, that would sentence them immediately. That evening or the next morning, they should be brought to the town center and in the full glare of the public, be given between 40 and 150 HOT lashes.

Singapore has a form of this corporal punishment and it is working wonders.

For Nigerians, it will be more effective as a deterrent than say, fines, and cheaper for the government to enforce than prison terms where they have to spend scare resources that should go into things like education and healthcare of good law-abiding citizens, on providing free food and shelter for criminals.

It also reduces economic losses. Instead of Mr A been sent to prison for 6 months, where the government will pay so much to feed, shelter and take care of him, while 6 months of Mr A's economic output and productivity is lost to the nation, he should instead undergo judicial flogging where he is given like 120 lashes. It is cheaper on the government's part, it serves as a better deterrent against crime for the population, and instead of loosing Mr. A's 6 months of economic productivity if sent to prison, the nation looses just like 2wks to one month, been the period of recovery from the brutal flogging.

And putting such laws and punishments in place is one thing. They should also be enforced. One of the reasons for crime and corruption in Nigeria today is because there are no consequences, and on the rare cases where there are consequences, they are just a tap on the wrist. Take for example, Evans the kidnapper, apprehended so many years ago, yet till today, has not been convicted. With all the media coverage his case got back then, imagine the strong message it would have sent to potential criminals if he was executed on national TV few weeks after.

This lack of consequences is also telling in our prison numbers. With all the numerous crimes and killings everyday in Nigeria, we still have one of the lowest incarceration rates in the world. It means criminals are not getting punished. At 65K prisoners (with more than half yet to be tried, so the actual figure should be around 30K), it means Nigeria has a paltry 32 prisoners per 100,000 population. Our relatively peaceful African neighbors like Cameroon, Ivory Coast, Benin have 125, 83 and 70 prisoners per 100,000. Rwanda despite having a population over 23 times less than Nigeria's, has a prison population equal to Nigeria. It has 511 prisoners per 100K. The US is at 640. Even super safe and peaceful countries like Australia, New Zealand, Singapore, Switzerland are at 160, 188, 185 and 80 respectively.

Is it that Nigerians don't commit crime, no. It's that those that commit crimes are not been punished, which in turn, encourages further crime, hence our situation today.

All this must change.