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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4610960 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 just2endowed: 10:59am On Aug 23, 2015 |
NairaQuest: Bros thats what I was thought in school oh..... Am really confused with Nigeria financial system self. Is that the reason nothing work in Nigerian. |
Re: Treasury Bills In Nigeria by quertyquack: 11:21am On Aug 23, 2015 |
My bank doesn't debit the face value. My experience is that they debit whatever is left of the face value after interest and custodian fees have been paid. NairaQuest: |
Re: Treasury Bills In Nigeria by silvoice(m): 4:30pm On Aug 23, 2015 |
princeuk21:all these people quoting accouting principle and you advising smbody to contact branch manager, is not a must that u advice on what u know a little or nothin about. I hav said it that d theory of intrest at maturity is not what is obtainable in 90% of these custudian financial institutions in Nig. selling Tbills. So if someone said a bank took entire face value of 100k in Nig. bank, It's normal. As they would credit d intrest shortly after the auction. Don't cause innocent investors much pain with theoretical advice that would make them look stupied when they go to the bank and begin to quote a/cting principle. Or are u not aware that most of this small amount investors will literarily beg this banks to sell tb to them to no avail they wil tell u that d don't do tbill with that amount. 1 Like |
Re: Treasury Bills In Nigeria by okeyjames(m): 6:25pm On Aug 23, 2015 |
NairaQuest:Your entries are correct. However, interest is paid upfront. In accordance with the prudence principle, interest is recognized when it is earned. Upon maturity, cash is debited with say 100,000. Investment is credited with 90,000 and Income is credited with 10,000. 1 Like |
Re: Treasury Bills In Nigeria by unite4real: 2:41pm On Aug 24, 2015 |
silvoice: I dont even know what you are talking about. I give you an instance, i have personally been investing in treasury bills for the past 5 years with 3 different banks. on each occassion and bank, they normally leave my discounted interest and the difference is debited. There had never been a time that all my principal was debited only to credit the interest later. that can only happen when you buy government Bond. So the advice that was given is not bad at all because if it happened to me, i will go straight to the bank and raise my voice small. 2 Likes |
Re: Treasury Bills In Nigeria by ukay2: 3:05pm On Aug 24, 2015 |
unite4real: Please, I bought FGBond(feb2020) on August 12th, when will the coupon (interest) be paid(I.e start coming into my account)? Thanks |
Re: Treasury Bills In Nigeria by silvoice(m): 10:53am On Aug 25, 2015 |
unite4real: |
Re: Treasury Bills In Nigeria by silvoice(m): 10:55am On Aug 25, 2015 |
unite4real:you are right in what you are saying but my point is that as far as Nig. Banks are concern, they either debit the face value and credit ur interest shortly after or leave ur interest while debiting. In either case we have no control of what they do. We can only complain and they will apologise only to repeat same another time. So it will be wrong to assume that something is wrong if the debit the entire face value. |
Re: Treasury Bills In Nigeria by feelamong(m): 11:19am On Aug 25, 2015 |
ukay2: coupons are paid semi annually...June and December.. so by december we suppose come do small party for ur side.. ![]() ![]() 1 Like |
Re: Treasury Bills In Nigeria by ukay2: 12:21pm On Aug 25, 2015 |
feelamong: I thought it will be FEB and August (6) monthly 2 Likes |
Re: Treasury Bills In Nigeria by Naijainvestor: 1:28pm On Aug 25, 2015 |
[quote author=ukay2 post=37316388] I thought it will be FEB and August (6) monthly[/quote Yes, you are right, the next coupon date is February 13 2016 1 Like |
Re: Treasury Bills In Nigeria by Nobody: 11:16pm On Aug 25, 2015 |
silvoice:My brother you are absolutely correct. I've invested in t.bills for 5 times now with first bank plc, and on each occasions my face value was debited and the interest coming a day or two after the auctions. |
Re: Treasury Bills In Nigeria by Mohr(m): 11:33pm On Aug 25, 2015 |
ukay2:FGN Bond 2020 will be paid bi-annually, 13- Feb & 13- Aug. 1 Like |
Re: Treasury Bills In Nigeria by Yem0350: 6:49am On Aug 26, 2015 |
Mohr:If you buy on d floor of NSE, how will one get d coupon? |
Re: Treasury Bills In Nigeria by ukay2: 10:12am On Aug 26, 2015 |
The treasury bills market rates at channel TV business day program shows 364DTM @15.6%, 94DTM @15.54% Please can someone explain to me what these rates mean whether it is better to buy from secondary market at the floor of NSE? Benefits and problems of buying from secondary market at the floor of NSE? 1 Like |
Re: Treasury Bills In Nigeria by debostar(m): 10:42am On Aug 26, 2015 |
Please, does anybody know why FBNH is not showing on the Morgan trading platform. Its being difficult to trade FBNH since yesterday.Thanks. |
Re: Treasury Bills In Nigeria by Yem0350: 11:39am On Aug 26, 2015 |
debostar:Check the "premium' board |
Re: Treasury Bills In Nigeria by yomi007k(m): 1:13pm On Aug 26, 2015 |
ukay2:Hello sir, Pls I'd like 2 know why u chose bonds over T-bills. How much r dir interest rates? How often do u get paid ? I'm also lookin 2 invest. Thanks. 1 Like |
Re: Treasury Bills In Nigeria by debostar(m): 1:29pm On Aug 26, 2015 |
Yem0350:Thanks |
Re: Treasury Bills In Nigeria by ukay2: 2:26pm On Aug 26, 2015 |
yomi007k:... @August 2015;5 years FGBOND feb 2020 interest was 15.36%,higher than NTB.... Coupon (interest) is being paid twice in a year. .....6 monthly....I.e if the interest is 1 million naira in a year, you will be paid 500 thousand naira every 6 month for 5 years if you hold on for that 5 years. And your principal amount returned into your account at maturity..... Hope other ogas in the house will explain more... Am just learning this investment thing this year 1 Like |
Re: Treasury Bills In Nigeria by yomi007k(m): 4:13pm On Aug 26, 2015 |
ukay2:Hmm not bad Tnx boss Na to hustle hard n cut off unnessary expenses oo. But does FGNbonds have demerits? Wat happens if for example in 2018 if d FGBonds rate get to 20% will u still be paid ur 15% interest rate? |
Re: Treasury Bills In Nigeria by Naijainvestor: 5:17pm On Aug 26, 2015 |
yomi007k: This is what is called the interest rate risk in bond investing. If the rate goes that high, you will still be paid the 15% but you can decide to sell it and reinvest in the higher interest bond, the only problem is that when interest rates go up, bond prices go down, so you may not realize the purchase price if you sell then. That is why it is advisable to try to speculate on how interest rate will go before buying bonds. Having a mixture of medium term and long term bonds may help manage such risks 1 Like 1 Share |
Re: Treasury Bills In Nigeria by ukay2: 8:20pm On Aug 26, 2015 |
Naijainvestor: My oga naijainvestor, Pls can you explain more by WHEN THE INTERST RATES GO UP, BOND PRICES GO DOWN? Also what is the current FGN bond price? How can one speculate how interest rate will go before buying bonds? Thanks my oga at the top... |
Re: Treasury Bills In Nigeria by Naijainvestor: 8:49pm On Aug 26, 2015 |
When interest rates go up, say from 15% to 20%, no one wants to buy the bond with a 15% interest. The only way to motivate buys is to sell the 15% bond at a lower price to compensate for the rate difference There is no single price for all the FGN Bonds, it depends on coupon, maturity etc, if you tell me which one you want, I will tell you the price. There is a way to anticipate the direction of interest rate by observing and analyzing economic events. That is looking at the yield curve but I cannot do justice to that in a forum, it needs detailed explanation but as an example, the fact that oil prices are falling indicates that Nigeria will be at a tight Corner to meet its obligations, the implication of this is that rates will increase, if this anticipation is true, then it pays to go for shorter term instruments 1 Like |
Re: Treasury Bills In Nigeria by mrkels(m): 8:49pm On Aug 26, 2015 |
Today's deal was 178 days for 12%. The one I did in Feb would mature tomorrow, already got an email alert for it. My main problem now Is that which other bank can I book tbills that would be as easy and stressfree as my bank, I called fcmb and sterling and they are giving me excuses, fcmb account officer is saying it's only on wed they bid, sterling acct officer said she has never done it in her life before, I was just dumbfounded because me I do for customers everyday and I don't need to wait for Wednesday before I collect a request and treat . I really don't wanna do it again in my bank, I need other options please |
Re: Treasury Bills In Nigeria by Naijainvestor: 9:05pm On Aug 26, 2015 |
I am a little confused, a 176 day bill is being quoted at 15.15% on the FMDQ web site as the secondary market discount yield, if that is the case, why would a 178 day deal be at 12% |
Re: Treasury Bills In Nigeria by ukay2: 9:08pm On Aug 26, 2015 |
Naijainvestor: Thanks my oga For 15.54%Feb2020 FGNBond, what is the price? What are the shorter term instruments one can invest? Really I love investment..... Really, I don't know why people que in embassies for visa when there are so much Money to make in naija.. Once u have a job that you earn salary or business that gives you good income one has to be PATIENCE and build your financial world gradually.. I only go outside for vacations and come back naija for making money via NTB, FGNBOND, MUTUAL FUNDS, NSE, REAL ESTATE... I think many people including some "bankers" do not know many of these investment opportunities... 2 Likes |
Re: Treasury Bills In Nigeria by Naijainvestor: 9:25pm On Aug 26, 2015 |
Today's offer yield on that bond is 15.76% making the price 99.3, Shorter term instruments are NTB and bonds that will mature in less than 3 years like the FGN 15.1 Apr 27 2017 I think that people are too risk averse especially after they lost their money in 2008 or thereabout, in addition there is lack of investor education in Nigeria so much such that many people do not know much about the stock market and financial products. Not all bankers are required to know about these, some bankers are retail or commercial bankers, they deal with cash and deposits but the investment bankers are those that should know and educate people on the capital market products There is still hope though |
Re: Treasury Bills In Nigeria by yomi007k(m): 9:54pm On Aug 26, 2015 |
ukay2:Ppl dat queue for visas don't have a salary to earn or a business that gives them income. It is not their fault. Its better dey go out dn rot down here. Naija is hard, only very few can drop millions for bonds n bills. Shalom 1 Like |
Re: Treasury Bills In Nigeria by ukay2: 10:10pm On Aug 26, 2015 |
yomi007k: I think the money/expenditures for visas be channelled into businesses and other investments here in naija. Many people are still making it big time in naija..... Just patience and right information are essential.. Sometimes, after spending such money , some maybe repatriated into naija or they suddenly realise that it is not greener at the other side of life... 1 Like |
Re: Treasury Bills In Nigeria by yomi007k(m): 10:26pm On Aug 26, 2015 |
ukay2:Ur quite right. However, a business has d tendency to make profit or loss. Some ppl don't spend dt much on visas. I know ppl from both categories... Its not jus easy for ppl. 1 Like |
Re: Treasury Bills In Nigeria by babakess: 7:51am On Aug 27, 2015 |
****Buying into a low risk biz..like NTB... even with low capital of 100 to 200k....over a long period of time .....can make you very rich and financially independent provided you just keep reinvesting the capital and interest at Maturity..........PATIENCE is key .............its not what you earn but patience in adding small amount and the interest to capital and re-investing .....COMPOUND INTEREST(geometric explosion of your money)...... 5 Likes |
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