₦airaland Forum

Gavrelino123:
This is so saddening......well,even if the rate drops to 6% i will keep on investing on TB.....
I saw some of my Dad's old TB proof of investment far back with Union Bank 4%....6%....11%....etc....i was shocked...lol

That's good as I am on same page with you.
I will also continue to invest in Treasury Bills no matter what so as to be able to sleep with my two eyes closed

Gavrelino123:
I just hope T.B rate increases.....Even if it's 14% or 15%.......I always stand with T.B....

If wishes were horses....
I hope so too but the bitter truth is that it's going to remain south west for a while.
Just pray it doesn't get below 10% by 2nd quarter

feelamong:
Who is posting this here?

I hope you will also remember to post when the price gains 100% in the next 3 months

Yes sir. And if it goes lower then too.

Mind you, I posted it only to illustrate why I won't go for it because I don't have the liver for it. I am not condemning those who have the liver and shock absorbers for it.
After all its their money and it's their choice too

kings11ng:
we all have a story to tell

Oh yes o.
Please share yours too. I may be able to learn one or two things. There is joy in sharing

TONY56:
Bitcoin drops below $6,200 http://punchng.com/bitcoin-drops-below-6200-for-first-time-in-three-months/

That's why it's not meant for someone like me who has no liver nor shock absorbers for such news.

Bitcoin drops below $6,200 http://punchng.com/bitcoin-drops-below-6200-for-first-time-in-three-months/

Gavrelino123:
Chief Tony,,you are the best....,you analysis are very correct and it correlates with our economy.
This indicates you are an expert indeed....thanks and God bless...

No o.
I am just a learner.
The only thing I probably do differently is reading widely because my mind and eyes should be where my investments are.

I am a Mechanical Engineer and I retired from the Federal Civil Service in February 2016 at the attainment of the mandatory age for retirement and I chose to invest in Treasury Bills after reading posts on this thread from page 0 to about over 300, I started investing in Treasury Bills last year. I also read all other posts including reading Financial papers and news to aquaint myself with the economy and Financial matters all over the world.

My prior experience was in Shares from which I made some money until the then bubble busted around 2008. Since I no longer have the liver for shares because I need to sleep with both eyes closed now, I have solace in Treasury Bills just as they say that "slow and steady wins the race" and pressure on me regarding my financial responsibilities has reduced. So why should I now take such risks that could send me to early grave when Treasury Bills can make me at least comfortable?.

I am also planning to go into Piggery just to keep myself busy a little bit instead of just staying at home and having all muscles getting stiff due to lack of physical activities.

Hopefully, the Pig farming will take off by July this year when the construction works of the first phase will have been completed.

That is my story for you.

Gavrelino123:
Chief Tony, considering the current TB rate,do you think it's advisable for someone to lock for one year(364 days)....?

I have done just that and I advised people to try to participate in the first auction of the year cause I felt it is likely going to be the best rate for the quarter and possibly next quarter.
I have since been proven to be right. If you feel that it may rise later this year, you may opt for 182days but personally, I doubt because all the indices I am seeing does not suggest that it may rise this year.

Oil price is going up again globally, the Naira is not likely to depreciate, Nigerian government is making more money from oil, our reserves is growing and whether some people believe or not, Nigeria is out of recession, our stock market is about the best in the world now in terms of returns on investments and performance this year though that bubble can burst anytime and the government has embraced the euro bond which is cheaper than borrowing from us through the sale of Treasury Bills. So government is no longer under pressure like before and the foreign portfolio managers are bringing in foreign currencies to invest again which is good for government and the economy.

So, as for ME, if I have more money, I will lock it in for 364 days and if the rates should go as low as about 5% which I hope and pray doesn't happen, I may even off load some before maturity if I have need for it and lose little or insignificant part of my upfront interest.

DISCLAIMER! !!
Please, I am not an expert but that is the way I see it. So do not take it as an expert's advice. I am doing it at my own risk and if you take to it too, it's at your own risk.

nennin:
please sorry for spamming the thread why not go for fixed deposit? Because i had some banks give up to %4.5 per month.

You heard but did you go there to confirm?
Whenever you go to confirm, simply ask them to give you an example like the amount that you will get as interest after investing N1m for 30days

nennin:
please sorry for spamming the thread why not go for fixed deposit? Because i had some banks give up to %4.5 per month.

When you're told that interest rate is 4.5% per month, it doesn't mean that if you put N1,000,000 there, you'll get N1,000,000 × 4.5/100 = N45,000 as interest.

No. All interest rates are expressed as such but for one year. So, if you put N1,000,000 in that bank for one month at 4.5%, don't be surprised that what you will get will be N1,000,000 × 4.5/100 × 1/12 = N3,750 and not N45,000.
If it's a bank, that's what they mean.

However I may not be able to say the same for some of these Finance houses and Micro finance banks whose risks are almost up to 95% compared with TB that is 99.99% risk free.

So the choice is absolutely yours but for me that have zero appetite for risk, I will always go for TB no matter the rate because I like to sleep always with both eyes closed

Nowayo4Real:
2500/3 =833.33..., and not 83.33

Oh yes. You are right.
It's 833.33. It's was a slip.
My apologies to all.

I will edit it accordingly

[quote author=nennin post=64815631][/quote]m


It's obvious that you didn't watch the said 2nd part of the video. He mentioned 10% of N100,000 and not 9%.
10% of N100,000 i's N10,000 (for 364-day tenor). So for a 91-day tenor he was talking about, the interest is N10,000/4 = N2,500. For 30-day tenor, it should have been 2500/3 = N833.33 instead of the N420 that he got

freeman67:
@Tony Thanks had to look it up thoroughly in investopedia.com after reading your post.

You are welcome sir.
We all learn everyday.

royalzee:
Nice Video....Below is a link for the continuation.


https://www.youtube.com/watch?v=EIoB1Zcl1Mw

Thanks and God bless you for posting the continuation of the first video for people to see what I was writing about

See where he calculated 2,500 to be approximately 420

freeman67:
Oga Tony you posted a very nice video too. Though Ugo in the first video may not have broken it down completely. In the video you posted the fair CBN lady said there is 'Buy Monthly Auction' and 'Dutch Auction' she only explained Dutch Auction; as the auction where every body gets their bidding rate irrespective of the auctions stop rate. I believe if she had explained the other one you would have seen the angle Ugo came from.

@Oga Aghalee Bank sets their separate rules and the way they do things. For example ; CBN did not set 1M minimum for Fidelity and UBA in TB investment they set it for themselves in a way. Presently CBN approved rate for transfer of funds through ATM is N50 +N2.5 VAT but I used a UBA card for transfers on Jaizbank and I was charged N100 per transfer. These banks can do anything. Those days when retail investors can bid below 50M even if you want to set your own bid rate some banks will still disagree.. Why? Because they won't benefit anything from you that way. So most times even if some banks gets a successful bid at higher they will still give you lower.

There is nothing like "Buy monthly auction" in Treasury Bills anywhere in the whole wide world. I guess you didn't hear her properly. She said "Treasury Bills is a Bi-monthly and a Dutch Auction".

Meaning that Treasury Bills takes place twice a month and also that the type of auction used is the Dutch auction type. And that's what is done all over the world. There is only one type of Treasury Bills auction all over the world.
If just Google or check dictionary for ĺ"Treasury Bills" that's the basic thing you will see. You will never read that there is more than one way of its auction.

So there is no hiding place for the blunders made by the interviewee in the first video. I am sorry to say that he shouldn't have been brought to come and do that programme in the first instant. There are more than 30 gurus(I am not one of the gurus pls cause I started learning on this thread barely two years ago and I am still learning) on this thread that would have done good justice to the questions he was asked. I don't know if you saw the 2nd part of that programme where he made calculations on the board and calculated N2,500/3 to be N420-terrible!!!

So my brother, it was simply a very bad video that shouldn't have been posted on this thread because unsuspecting people and especially newbies would be terribly misinformed. You can see that after watching it, some people started reacting to it as "This is nice" without realising that it's not nice.

I am very critical of the video because I always ask people to learn to read from this thread to get good informations rather than asking already answered questions and such videos if good would be of good benefit to them. I thank God that after searching for a better video to replace the first one, I was able to get the one I posted yesterday which clearly explained it as it is.

Khutie:
•••What's the difference between primary and secondary market?

I hope that's not a question meant for me?
If it is, I am sorry that I won't answer it cause it has been answered on this thread more than 50 times so the answer is on the thread and I have posted earlier that I will no longer answer questions that have been answered severally on this thread. The answer is even in the video i posted yesterday.

Please don't feel offended.

dotcomnamename:
This is nice



https://www.youtube.com/watch?v=Mw2VVuKdTY8

THE ABOVE VIDEO IS NOT NICE AT ALL PLEASE!!!

People, especially newbies who don't really understand how Treasury Bills work should please throw the above video into the trash because it's a misleading interview as I have already posted earlier.

Even in the follow up or second part of that interview, the interviewee was calculating N2,500/3 to be equal to N450. Can you imagine?


I have painstakingly looked for a better video in its place that will explain Treasury Bill better to everyone
Please find it below and compare with the one above.


https://www.youtube.com/watch?v=q2vAnm6sEWM

dotcomnamename:
This is nice



https://www.youtube.com/watch?v=Mw2VVuKdTY8

I beg to differ with the interviewee.
I heard him say that "if you bid for TB at 14% and the stop rate is 17%, you will eventually get 17% also.

That is not true. If you are successful, you will get the rate you bidded for. If what he said is true, then why does some banks like Stanbic and First buy at better rates than others?

To me, the man has confused issues about it entirely. CBN may announce the average bid rate of all the investors but does not sell at average bid rate. You can't ask to buy TB at 10% for example and get it at 9 or 11%.

What he told his viewers on that programme to me is absolutely not correct. I humbly stand to be corrected.

boldndbeautiful:
@ TONY56

good morning, i noticed you give clear reply partaining to t.bills issue and i have a question, is it possible for one to have money in fidelity bank
but use another bank for T.bills due to their better rate?

The answer is an emphatic NO.
You can't put your money in Tony'S pocket and invest it with Fidelis. If you want to invest it with Fidelis, you have to collect it from Tony and give it to Fidelis to invest it for you.

hiscules:
Well done Sir. What if I bought in the secondary market? Can I terminate my investment too??

Is it the same scenario illustrated above that applies. If not ,can you throw some light on how terminating in the secondary market works.

Thanks

I must confess that I have never bought and terminated a TB bought at secondary market before so I don't know if TB purchased at secondary market can be terminated before maturity.
But I am sure that if it's possible to terminate it, same scenario illustrated above will apply

Agbaletu:
If he doesn't have up to N99,725. 28 in his account, does it mean he will lose part of his Principal? Most people normally withdraw or reinvest their interest and leave nothing or small coins in their account.

Sure. It will be deducted from his principal amount and that doesn't mean that he has lost part of his principal since he was paid N120,000 upfront.

It's still part of his upfront interest that is being lost as long as it's not up to the N120,000 he collected earlier

Partnerbiz:

If I buy TB in January at 12% for 365 days, and terminate in August when rates are 18%, will I lose part of my capital? Is it possible please?


feelamong
investnow2017

acidosis
freeman67 et al.



dotcomenamename
tony56 ( my man) lol

Assuming there's no penal charges like that of Union Bank, the answer to your question is that you are very likely to lose substantial part of the upfront interest paid to you.

Assuming you bought N1,000,000 TB on 1st Jan at 12% for 364days, your upfront interest before the usual deductions is N120,000.

Also, assuming you terminate on 30th August, the actual interest you will be entitled to for the 243days= 243/364 × N120,000 = N80,109.89.

That means you are to refund N39,890.11 as excess interest received.

Now, the 1m is now to be sold at 18% for the remaining 121days>> the upfront interest payable to the new buyer is 121/364 × N1,000,000 x 18/100 = N59,835.17. That amount (N59,835.17) will equally be charged on you i.e your total refund or deduction from your 1m is now N99,725.28 since you have been paid N120,000 upfront. This is the amount you would lose excluding other normal charges which are very unlikely to be up to the N20,274.72 left out of the N120,000 you received as upfront interest.

So, in a nut shell, you will be losing almost but not all the upfront interest you collected without affecting your principal (assuming there is no penal charge of 25% as it's charged by Union Bank). Otherwise, the penal charge will eat into your Principal amount

dotcomnamename:
UPDATED

Please always apply immediately if your bank tell you the available tenor and percentage.

I can confirm that you are 100% right. The 87 Days at 12.20% i applied for has been unsuccessful because someone else grabbed it up before i forward my application. They just told me that there is 70 days at 12.5% and i have applied for it immediately. Not even sure if the 70Days at 12.5% is also a good deal

My brother, it's simply superb

dotcomnamename:
Would you rather top up existing Mutual Funds than to go for Treasury Bills 12.20% 87Days? Security wise?

I will go for 12.2% Treasury Bill cause the mutual fund performance is a function of the TB rates. The largest investments of mutual funds are invested in Treasury Bills. So since TB rates are falling, mutual funds ROI will equally fall and with TB, you have up front interest which you can also reinvest for better returns and it's tax free unlike Mutual Funds.

That's my take. Also, risk wise, the mutual funds are a lot riskier than TB. if your operator of Mutual fund collapses, your investments collapses with it but your TB investments are safe and secured if your bank fails or goes under because your investment is with Federal Government of Nigeria

dotcomnamename:
My account officer just told me that there is 12.20% 87Days, but this is still under my consideration! Not sure whether to go for it yet

What are you waiting for?
With the way rates are going down?
You may not be that lucky tomorrow.
Hope you remember that last week"so stop rate for 91days was 12.1%?
You are missing a fantastic rate and I bet someone else would have taken it before you go back for it

davit:
Seriously. Na to look elsewhere for investment now. Seems stocks doing well at the moment.

Hmmmmmmmmmmm.
Oh yes, stocks is really doing better at the moment BUT please be very careful as the bubbles in stocks can burst anytime without you knowing.
What's happening in the stock market now is that the Foreign investors have landed with their money and knows the best time to take their exit.

If you are not an expert in shares, you may be attempting suicide by jumping into it and stocks is a place where you can also lose ALL. remember that the last melt down about 10yrs ago "Killed" many inexperienced, greedy and feeble minded people and ruined many others for life.

Even if the Treasury Bills rates is 5% which I hope it doesn't get to, you are sure of your investments and you can go to sleep after investing with both eyes closed. But if you are hard hearted and you have a superb shock absorber for stock bubble burst, then you may take a plunge

vitality22:
Chai, the rate has really gone south ooo,

Oh yes o.
I predicted it and also said in my post before the first auction of the year that the rates of the first action is likely going to be the best for this quarter and maybe beyond.
The rates are actually South bound and MAY get below 10% by end of the quarter especially when the 364-day tenor is being over subscribed by over 100%.

If you are disappointed with today's stop rates, it would have been better if you had invested two weeks ago and I can bet that next auction will be worse than today's. So lock in into the secondary market even for a slightly lower rate than today's or regret it by the time you see next two weeks result-that's my 10k advice

Iamzik:
Good morning House.

Please what is the procedure to terminate treasury bill before maturity? It's one one year tenor and six months has elapsed already.

Someone please assist

@Investnow2017
@sancticruz
@freeman67
@smiliyB

Are you sure you are talking about treasury bills and not Bond?
I ask because Treasury Bills have only 91days, 182days and 364days tenors and if they mature, you will simply get your account credited back with your Principal amount

crowntoro:
you misunderstood my message to the guy but it's ok

I understood your message and very well too. You did not castigate me at all but you made me to realise that some people don't like the way I respond to some questions asked by people especially the newbies who I have always adviced to go read the earlier pages of this thread for better understanding just as I did before posting anything here instead of looking for people to spoon feed them and at the end if the day, they keep coming back to ask more questions that have been answered severally before.

crowntoro:
click on that link and read through for better understanding of the FGN bonds
According to the article about it, you can't invest in it again in January but till next Month
There are times I feel Tony56 response(s) to some questions here is/are always harsh but this is it

Read through please

I have just realized that silence could be Golden on this thread. Therefore I may keep mute on some issues especially when it has to do with general questions so that I don't get labelled again.
My responses has always been in very good faith and the best way I feel issues could be solved