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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4608478 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 Beautynaija: 10:48pm On Jun 21, 2021 |
ukay2: Brotherly.. |
Re: Treasury Bills In Nigeria by Tobex4realTobex234(m): 11:40pm On Jun 21, 2021 |
neyyoh: If my calculation is right, that's about $10k on $ORC. Hmmmmm on a risky stock. I never get that kind money. But I kinda like this strategy though. I might play with it and see how it works. Thanks boss. 1 Like 1 Share |
Re: Treasury Bills In Nigeria by neyyoh: 11:51pm On Jun 21, 2021 |
Tobex4realTobex234: Buy around the low 5s. I can guarantee you'll thank me lol. You will never see red, always green, even when everything tanked recently it kept going up . Entry 5.25 or lower. |
Re: Treasury Bills In Nigeria by Nobody: 4:08am On Jun 22, 2021 |
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Re: Treasury Bills In Nigeria by emmanuelewumi(m): 5:54am On Jun 22, 2021 |
RayRay06677: You will get between N6 million and N7 million 1 Like |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 5:55am On Jun 22, 2021 |
ukay2: They must have bought at a discount |
Re: Treasury Bills In Nigeria by pizapato(m): 6:09am On Jun 22, 2021 |
Emndy: Finding an investment where this can be put in autopilot is the wahala 1 Like |
Re: Treasury Bills In Nigeria by akinola98: 6:31am On Jun 22, 2021 |
emmanuelewumi: Pls do u need to have a stock account with stanbic IBTC before you can buy secondary bond through them ?? Thanks 1 Like |
Re: Treasury Bills In Nigeria by pizapato(m): 6:52am On Jun 22, 2021 |
emmanuelewumi: By which investment house? Kindly share platforms through which investors can buy these bonds easily 1 Like |
Re: Treasury Bills In Nigeria by Thisnut(m): 7:11am On Jun 22, 2021 |
This long term bond is like a trap. When you want to eat with the devil, it's better to use a long spoon; In this case, the govt is the devil. 1. Why would someone borrow the govt money for an extended years when the govt can always print money to pay you back? Nigerian govt solicited for USD some months ago to pay 5naira for every USD; after they took all the USD, the crooks of a govt decided to print more money and devalued the naira. Just imagine some folks actually fell for that old trick. They gave treasure bill at 7% last year and naira went down 39% against USD the following year. 2.What would be the purchasing power in the next 20years following the trend in the last 6years? What if the economy gets better and naira becomes strong would it make your property value go down? 3. What is the value of a house bought 1m naira 20 years ago and what is the value of the money right now? Let say the money was compounded at 15% and the estate moved at 7% of the house value at every given point. 4. How fast can you flip a real estate vs a fixed bond and What do you risk losing breaking a bond? 5. Something just happened and I need my money now for better opportunities; shut up and comeback in 10yrs. My take: Real estate might not give a promising future, but always find a way to win in the face of inflation, deflation and recession. Right now the house market in the U.S has gone up more than 20% since the pandemic, while the mortgage rate has gone down more than 50%. 3 Likes |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 7:20am On Jun 22, 2021 |
akinola98: Either bank account or Stockbroking account 1 Like |
Re: Treasury Bills In Nigeria by Nobody: 7:41am On Jun 22, 2021 |
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Re: Treasury Bills In Nigeria by Nobody: 7:42am On Jun 22, 2021 |
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Re: Treasury Bills In Nigeria by Nobody: 7:43am On Jun 22, 2021 |
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Re: Treasury Bills In Nigeria by akinola98: 7:51am On Jun 22, 2021 |
emmanuelewumi: Ok.. thanks |
Re: Treasury Bills In Nigeria by XiaoLi: 8:50am On Jun 22, 2021 |
Also let him know that he will lose part of his capital if he liquidate when interest rate is high, this is giving me serious headache now..i bought 100 units from primary market last year and wants to liquidate now..my bank is telling me that i will lose about 12M from my capital...na only once i don chop coupon, next one should be next month. ukay2: 1 Like |
Re: Treasury Bills In Nigeria by decargne: 9:00am On Jun 22, 2021 |
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Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:02am On Jun 22, 2021 |
XiaoLi: How much did you Invest? What was the coupon when you bought? What is the tenor of the Investment? |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:04am On Jun 22, 2021 |
decargne: Minimum for Stockbroking account opening is N5 million in cash or shares |
Re: Treasury Bills In Nigeria by shalomblue: 9:17am On Jun 22, 2021 |
Choosing between bonds and real estate is a decision every investor would need to make at a point. I was at that crossroad so months back and it was really a difficult decision. If you have a personal house already, go for Bonds. Bonds make more sense short term but real estate give sentimental fulfillment and if you get it right, better returns longterm 2 Likes |
Re: Treasury Bills In Nigeria by afroxyz: 9:19am On Jun 22, 2021 |
Thisnut: 1. If that is the case why doesn't the govt print the money they need and fund their projects directly rather than borrowing money through bonds? 2. You can compound your coupon payments as a hedge against inflation 4. The only effect would be the prevailing intetest rate when u decide to sell. Better to sell when interest rates are low. 5. You can always sell your bond in the bond market. Housing rates in US are only high because of rising lumber prices. This is not sustainable in the long term, at most 2-3 years. In the last 2 weeks, lumber prices have fallen by as much as 40%. Coupled with the reopening plus interest rate which the Fed would surely raise by 2022, mortgages would go up. 1 Like |
Re: Treasury Bills In Nigeria by ojesymsym: 9:26am On Jun 22, 2021 |
Assuming I have more than 5M worth of shares somewhere else does that qualify me to open an account with them even if I do not intend to transfer the shares? emmanuelewumi: |
Re: Treasury Bills In Nigeria by ojesymsym: 9:31am On Jun 22, 2021 |
This bond thing can get confusing sometimes, who can explain in simple layman's English how interest rates affect bonds. If possible use case study of 1 million and 2 different (high and low) interest rates to illustrate. Thanks in advance. XiaoLi: |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:31am On Jun 22, 2021 |
Do you agree with him 3 Likes
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Re: Treasury Bills In Nigeria by NL1960: 9:33am On Jun 22, 2021 |
decargne: Iam the one collecting the 10% tithe for the forum. ![]() |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:33am On Jun 22, 2021 |
ojesymsym: Simple English, you open a Stockbroking account with them with N5 million in cash or shares. How else should I explain it? |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:40am On Jun 22, 2021 |
ojesymsym: You bought bond in the primary market at N100 with a coupon rate of 15%. If interest rates go down to 10%, the price of your bond will appreciate to N150 in the secondary market. 15 divided by 150 will give 10% If interest rate increases to 20%, your bond will depreciate to N75 in secondary market. 15 divided by 75 will give you 20% The yield from your bond will tally with the prevailing interest rates. 2 Likes |
Re: Treasury Bills In Nigeria by ositadima1(m): 9:46am On Jun 22, 2021 |
ojesymsym: Face value is the money amount the bond will be worth at maturity; it is also the reference amount the bond issuer uses when calculating interest payments. For example, say an investor purchases a bond at a premium $1,090 and another investor buys the same bond later when it is trading at a discount for $980. When the bond matures, both investors will receive the $1,000 face value of the bond. The coupon rate is the rate of interest the bond issuer will pay on the face value of the bond, expressed as a percentage. For example, a 5% coupon rate means that bondholders will receive 5% x $1000 face value = $50 every year. Coupon dates are the dates on which the bond issuer will make interest payments. Payments can be made in any interval, but the standard is semiannual payments. The maturity date is the date on which the bond will mature and the bond issuer will pay the bondholder the face value of the bond. The issue price is the price at which the bond issuer originally sells the bonds. 6 Likes 6 Shares |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 9:47am On Jun 22, 2021 |
ositadima1: Thank you so much 2 Likes |
Re: Treasury Bills In Nigeria by freeman67: 9:48am On Jun 22, 2021 |
emmanuelewumi: Not completely. Situations that brings about lending and borrowing are not absolute. I will say yes, where a person or people have a track record of being perpetual debtors. However, some people might just be genuinely interested in borrowing for something serious with genuine interest and laid down plans to refund it too. 1 Like |
Re: Treasury Bills In Nigeria by ositadima1(m): 10:01am On Jun 22, 2021 |
emmanuelewumi: Other factors like - Inflation and credit ratings, supply and demand, market sentiments, stocks. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 10:14am On Jun 22, 2021 |
ositadima1: Yes Inflation will affect interest rates The interest earned so far by the bond will also affect the price, because the coupons are calculated daily. |
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