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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4625446 Views)
Fixed Deposits Or Treasury Bills, Which Is Better? / Fixed Deposit And Treasury Bill Investments From Abroad / I Need Information On Treasury Bills In Nigeria (2) (3) (4)
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Re: Treasury Bills In Nigeria by Nobody: 12:29pm On Aug 04, 2015 |
yemmit90: The interest is not based on the amount you invested but based on the principal that is why it is said to be issued at a discount and redeemed at par. Note that the 10% is the discount yield not the yield to maturity. While the discount yield is based on the principal, the YTM is based on the actual amount you invested. see my calc in the response above |
Re: Treasury Bills In Nigeria by Nobody: 1:04pm On Aug 04, 2015 |
berexio1: Thanks, I would not say that I am an expert but when it comes to finance and economics, I would say that I have seen many Christmas days and I have some rags to show for it. But like Paul said in the Bible, not that I have obtained but I am still striving for the mark. We are all learning Thanks again 1 Like |
Re: Treasury Bills In Nigeria by debbydee(f): 3:31pm On Aug 04, 2015 |
topendo: you are welcome |
Re: Treasury Bills In Nigeria by silvoice(m): 7:17pm On Aug 04, 2015 |
yemmit90:i agree with u. Just recently i bought tb of 500,000k, at 10% in fbn. D full amount was deducted and 10% credited to my a/c d next day |
Re: Treasury Bills In Nigeria by Desanta(m): 9:06pm On Aug 04, 2015 |
silvoice: This is what happens in Nigeria, although what NairaQuest said is the proper thing that should happen. |
Re: Treasury Bills In Nigeria by Mentholated: 12:16am On Aug 05, 2015 |
With due respect, what NairaQuest stated is what is currently happening in Nigeria. |
Re: Treasury Bills In Nigeria by just2endowed: 12:36am On Aug 05, 2015 |
So what is being taught in school and books is not what the Nigerian financial market is following. So who will now bail us out? |
Re: Treasury Bills In Nigeria by Desanta(m): 8:48am On Aug 05, 2015 |
We should realize that whatever we write here can be read all over the world. The fact that most Nigerian banks do the wrong thing does not mean that Nigerians know not the proper thing. |
Re: Treasury Bills In Nigeria by unite4real: 12:02pm On Aug 05, 2015 |
NairaQuest: Your analysis is not make sense to a lay man like me, the 10% you talked about is not of N90,000 but of N100,000. in order words, if you have been given your true yield which is 11.11%, then i can buy your argument. as long as what i get is 10% of my capital of N100,000 and not N90,000 then i understand that my interest is upfront. well, just my lay man understanding. |
Re: Treasury Bills In Nigeria by Agbaletu: 12:09pm On Aug 05, 2015 |
Following this thread.... |
Re: Treasury Bills In Nigeria by coolguyz(m): 2:00pm On Aug 05, 2015 |
Hi Guys, Treasury Bills Auction Result for today as follows - 91 days - Total Allotment was N45.177billion at Stop Rate of 10.000% 182 days - Total Allotment was N30billion at Stop rate of 12.9000% 365 days - Total Allotment was N120billion at Stop rate of 14.7118% Hope you all find this useful. Regards 4 Likes |
Re: Treasury Bills In Nigeria by silvoice(m): 3:10pm On Aug 05, 2015 |
unite4real:seconded. Cos true yield , to me is meaningless if inflation is high. He might be correct technically base on what we call 'apparent image' in physics. But the 'real image' is that u collect ur profit from tb upfront |
Re: Treasury Bills In Nigeria by princeuk21(m): 3:33pm On Aug 05, 2015 |
hmmmmmnn |
Re: Treasury Bills In Nigeria by Nobody: 3:46pm On Aug 05, 2015 |
silvoice: I am amazed at how many Nigerians live with illusion that TBill interest is paid upfront, please read the below from the U.S. treasury bill website with particular reference to the Key Facts https://www.treasurydirect.gov/indiv/research/indepth/tbills/res_tbill.htm 1 Like |
Re: Treasury Bills In Nigeria by Nobody: 5:58pm On Aug 05, 2015 |
I think the confusion comes from the banks that handle the transaction. Initially, they debit both your investment and yield from your account only for your account to be credited back with your supposed yield hours later. This gives the impression that you received yield upfront. |
Re: Treasury Bills In Nigeria by Nobody: 6:07pm On Aug 05, 2015 |
phoinix: Thanks for this clarification. All they are doing is giving you back your over payment not the interest and like you said, they confuse people into believing that they are getting the interest upfront |
Re: Treasury Bills In Nigeria by Desanta(m): 7:57pm On Aug 05, 2015 |
phoinix:True talk. |
Re: Treasury Bills In Nigeria by silvoice(m): 9:03pm On Aug 05, 2015 |
NairaQuest:whether a cup is half full or half less, depends on ur view point. Lets say a man borrowed 100k from u at 10% intrest, in 360 days. He might decide to giv u 10k now an bal 100k after 360 days or pay back 110k at maturity. The former is d case of tb. pls experts in d house what do u think? We are all learning smh 1 Like |
Re: Treasury Bills In Nigeria by kaptinphilz(m): 9:49pm On Aug 05, 2015 |
My TB matured today yet no alert from first bank.. Pls anybody experiencing same |
Re: Treasury Bills In Nigeria by Nobody: 11:35pm On Aug 05, 2015 |
coolguyz: I am testing my valuation model and would like someone to tell me how much they invested in any of the above bills and how much they got debited and/or credited. I know that the transaction has not hit your accounts yet but when it does. Please help Your help is appreciated Thanks |
Re: Treasury Bills In Nigeria by feelamong(m): 9:51am On Aug 06, 2015 |
NairaQuest: bros what are you testing? I directed a friend to invest 50M in the last auction (Not this present one) for 91 days at 10%.. his account was debited to the tune of N48,753,424.66 |
Re: Treasury Bills In Nigeria by Nobody: 10:35am On Aug 06, 2015 |
Thanks for the information I am testing to see if my model will come back to that amount but I need the settlement date and expiration dates to be able to validate the calc that was why I was asking for the current auction since those two dates are known. |
Re: Treasury Bills In Nigeria by princewealth: 10:51am On Aug 06, 2015 |
After reading through this thread. I invested 270000 on treasury bill yesterday 91days period. the money was deducted from my account Tuesday night. I just got an alert now, crediting my account with 6588 naira. I don't really understand. the interest is much lower than what I expected. can someone explain how this works. First Bank |
Re: Treasury Bills In Nigeria by Nobody: 10:54am On Aug 06, 2015 |
feelamong: I am testing to see if my model give an amount close to that. Here are the result of my model: (1) for the 91 day bill, you should be debited 97.567% of the par value of your investments meaning that if you buy a N50m worth of TBill you should pay N48,783.747.61 (2) for the 182 day bill, you should be debited 93.956% of the par value of your investment.so for a N50m investment, it should be N46,978,207.26 (3) for a 365 day bill you should pay 87.175% of the par value such that for a N50m investment you should pay N43.587,494.92 Please let me how close my model valuation is as a way to test its accuracy Thanks |
Re: Treasury Bills In Nigeria by udysweet(f): 12:07pm On Aug 06, 2015 |
Infact I was gonna type smtn close to urs wen I saw ur post! I invested 500k dis week on TB(first bank) and I was debitted same amt next day. Just got an alert now creditting my acct wit N12,201.17. Pls can sm1 help and interprete dis for me:is it wat I'm to get for d 91days I invested? Pls o house help,God bless princewealth: |
Re: Treasury Bills In Nigeria by silvoice(m): 12:41pm On Aug 06, 2015 |
udysweet:that's what u get. I hope they have taken or will take about N100 and N104 custodian and transaction fees respectively. U get ur 500k back after 90days. That's why some of us believe that we get d intrest upfront. Cheers!! |
Re: Treasury Bills In Nigeria by udysweet(f): 12:45pm On Aug 06, 2015 |
Tnx a lot my broda. But pls dis is a 1st for me. My question is; is dis all I get on 500k for 91days,I mean the 12,201 naira? I tot dey say its usually 10 percent of the total amt invested? I'm lost o ,lol!and yes dey hav taken the 100 1st,d oda 104 naira hasn't been deducted yet silvoice: |
Re: Treasury Bills In Nigeria by Nobody: 1:12pm On Aug 06, 2015 |
udysweet: Yes, that is what it is. Using my post above, if you multiply N500,000 by 97.567%, you will get N487,835 and if you subtract that from N500,000, you get your interest of N12,165 The 10% is actually an annualized number, so you have to prorate for 91 out of 365 days If you want to know your interest before you invest, you can contact me and I will run the numbers through my model and give you the result Good luck |
Re: Treasury Bills In Nigeria by silvoice(m): 1:14pm On Aug 06, 2015 |
udysweet:if is 10% u get 50k divided by 4=12500, since it's 91days. but urs is possibly 9. Somthing percent 1 Like |
Re: Treasury Bills In Nigeria by udysweet(f): 5:52pm On Aug 06, 2015 |
Oh cool! Thanks a lot sir! Just got the whole idea now. Wish I knew about this TB thing before goin to sink in money into a phoney deal dat I'm still praying and fasting to get my money back! NairaQuest: |
Re: Treasury Bills In Nigeria by udysweet(f): 5:59pm On Aug 06, 2015 |
Yeah,I get the whole idea now,thanks a lot. Grateful silvoice: |
Re: Treasury Bills In Nigeria by freeman67: 5:33am On Aug 07, 2015 |
One year Bond @ 13.5 % in Stanbic IBTC bank. It starts counting from wednesday August 12th, 2015. For those interested contact them from now to Monday to acquaint urself with the process involved Thank you |
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