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Treasury Bills In Nigeria - Investment (967) - Nairaland

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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 Olamsoh: 10:40am On Nov 20, 2019
Call 07000 2255 2727
ojesymsym:
Can simple email solve this? After all I have cscs number. By cscs did you mean NSE?
contact@cscs.ng
Re: Treasury Bills In Nigeria by zanga420: 10:46am On Nov 20, 2019
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.


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.
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 11:18am On Nov 20, 2019
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

2 Likes

Re: Treasury Bills In Nigeria by skyangel(f): 11:24am On Nov 20, 2019
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


You are not alone brotherly. Though I like interest reinvestment, I still don't think i' m financially matured enough to abandon my money somewhere for a whole 3 -20 years without wanting to feel it in my bank account. I seriously doubt it

I'll just be running my mmf for now & watch how things go. I'll be checking for updates every now and then to see any improvement

4 Likes

Re: Treasury Bills In Nigeria by olujaidi: 11:50am On Nov 20, 2019
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

What's their expense ratio and management fee?

1 Like

Re: Treasury Bills In Nigeria by olujaidi: 11:56am On Nov 20, 2019
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.
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"
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 12:09pm On Nov 20, 2019
olujaidi:


What's their expense ratio and management fee?

They have deducted them before arriving at the figures.

1 Like

Re: Treasury Bills In Nigeria by Nakedman: 12:10pm On Nov 20, 2019
I have been trying to understand This whole Bond of a thing but no avail. Is there anyone here who bought bond from Stanbic bank lately? Was CSCS account part of the requirements for buying bonds from Stanbic?. I contacted Stanbic Customer service and I was told I don't need to open cscs account as long as I have a bank account with them which I do

How true is that?


Below is a response I got via mail


Kindly respond accordingly.

Re: Treasury Bills In Nigeria by Nobody: 12:32pm On Nov 20, 2019
After several dealings with fbnquest, my suggestion is to avoid them completely if you want to invest in bonds , stanbic bank is better.
Re: Treasury Bills In Nigeria by bendo75(m): 12:58pm On Nov 20, 2019
Nigsrdumb:
After several dealings with fbnquest, my suggestion is to avoid them completely if you want to invest in bonds , stanbic bank is better.


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.

1 Like

Re: Treasury Bills In Nigeria by igbizen(m): 1:28pm On Nov 20, 2019
Still observing...
Re: Treasury Bills In Nigeria by Nobody: 1:48pm On Nov 20, 2019
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.

The worst part is that you can't view the eurobond online. You have to send an email to them to check it , their fees are quite high, and interest rates are not stable because it's a bond fund and not a bond bond..

I've told them to cancel the application. I nor do again.

2 Likes

Re: Treasury Bills In Nigeria by Akin3891: 2:09pm On Nov 20, 2019
kings11ng:

vodoonomics

I was at stanbic this afternoon, 7.8 for 113 days, was told it might not even go through, she said even secondary markets are being prorated, wht d fck . And stanbic doesn't offer FG bonds but only FG saving bonds (10.2 for 2yrs, 11.2 for 3 years). Was told mutual funds was 10% as at yesterday, though she said mutual funds is being drag down also because of the instabilities of tbs. Will be signing up on mutual funds tomorrow, at least to preserve funds.
Re: Treasury Bills In Nigeria by Akin3891: 2:20pm On Nov 20, 2019
[quote author=ukay2 post=84187844]

My oga FGN Bonds do not in any where seem to be any legal 419 investment.
Rather it's your lack of understanding that is confusing you.
I have tried severally to explain to you .....but am sorry u still did not understand bond market calculation.

Maybe just try and invest 10k in 3 year bond and hold till maturity it will become clear to you.

I have FGN Bonds that have matured and still maturing in FEB 2020, APRIL 2037.
I have never loose my capital......rather keep getting the coupon payments at the said payment date.

Thanks a million for taking time out to explain better on this, i will like to invest in FG bonds come February, stanbic don't offer such, which bank did you buy from? The lady at stanbic doesn't understand the kind of bond that pay twice a year, except the fg bonds that pay quarterly.
Re: Treasury Bills In Nigeria by Diyke4rich: 3:28pm On Nov 20, 2019
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?
Re: Treasury Bills In Nigeria by OgogoroFreak(m): 3:30pm On Nov 20, 2019
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?
Take your money elsewhere.

1 Like

Re: Treasury Bills In Nigeria by Diyke4rich: 3:43pm On Nov 20, 2019
OgogoroFreak:
Take your money elsewhere.

The problem is that I am not in the country
Re: Treasury Bills In Nigeria by isangjohnson: 3:44pm On Nov 20, 2019
I believe you didn't ask for fix deposit rate. If you did, everybody in that hall would've asked you, Oga what is the problem? grin grin.
We just need to be very careful with our hard earned money else people will start telling sorry soon.

2 Likes

Re: Treasury Bills In Nigeria by isangjohnson: 3:51pm On Nov 20, 2019
I will advise you to take your time and check out the next available platform where the cash could be channelled to. If you're not certained or convinced, please hold your cash and what for Cbn next line of action in few months to come.
Re: Treasury Bills In Nigeria by zamirikpo(m): 4:28pm On Nov 20, 2019
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

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

1 Like

Re: Treasury Bills In Nigeria by OgogoroFreak(m): 4:29pm On Nov 20, 2019
Diyke4rich:


The problem is that I am not in the country
Use i-invest app if all else fail.

Those of you staying abroad should be the one using that app.
Re: Treasury Bills In Nigeria by Diyke4rich: 4:33pm On Nov 20, 2019
OgogoroFreak:
Use i-invest app if all else fail.

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

What is the app all about?
Re: Treasury Bills In Nigeria by OgogoroFreak(m): 4:41pm On Nov 20, 2019
Diyke4rich:


What is the app all about?
It's for investing in tbills but they only pay interest at maturity.

It has been mentioned here several times
Re: Treasury Bills In Nigeria by ojesymsym: 4:52pm On Nov 20, 2019
Thanks
Olamsoh:
Call 07000 2255 2727contact@cscs.ng
Re: Treasury Bills In Nigeria by chigo4u: 5:30pm On Nov 20, 2019
zamirikpo:


Abi....pls update me on this stanbic dollars fund thing. How does it work.
https://www.stanbicibtcassetmanagement.com/nigeriaassetmanagers/personal/Mutual-Funds/SIBTC-Dollar-Fund
Re: Treasury Bills In Nigeria by U1(m): 6:04pm On Nov 20, 2019
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

Anybody?
Re: Treasury Bills In Nigeria by zanga420: 7:00pm On Nov 20, 2019
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"
Thanks.
Would've liked to choose the one to listen to. Imagine being in 3+ groups and most of them use voice notes including unnecessary jokes.
Re: Treasury Bills In Nigeria by zohan101: 8:40pm On Nov 20, 2019
Yes you are right sir.. I think it will fluctuate quite alot..I got 11.76 money market fund from FBN quest today..Intend doing money market funds till TB becomes abit better..





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
Re: Treasury Bills In Nigeria by richforever123: 8:58pm On Nov 20, 2019
Please is mutual fund a safe investment, have there been any report of people losing their capital, if yes what are the return and how can one go about it
Thanks for your kind response
Re: Treasury Bills In Nigeria by needful: 9:41pm On Nov 20, 2019
Diyke4rich:


The problem is that I am not in the country

Use stanbic brokers if u wanna do FG bond and u can create the account online. Right now, they have 2yrs secondary market Fg bond and 3yrs.

Goodluck.
Re: Treasury Bills In Nigeria by Nobody: 9:50pm On Nov 20, 2019
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).

I really want to understand this but it will be clearer for me if you can use a sample scenerio with numbers.
Re: Treasury Bills In Nigeria by Omonigeriarere: 10:01pm On Nov 20, 2019
Nigsrdumb:
After several dealings with fbnquest, my suggestion is to avoid them completely if you want to invest in bonds , stanbic bank is better.


How did you go about it? I have savings account with them.

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