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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 TONY56: 5:28am On Aug 11, 2017 |
redcap: 1.Did you fill a Treasury Bills form stating or indicating that you wanted either a 91-day, 182-day or 364-day tenor Treasury Bills? 2.Did you receive any notification that it was done and successful either through text message or email? 3.Where you debited for the amount and credited with the upfront interest few days after? If the answers to the questions above are yes, then go to the Branch you did it and simply walk to the officer in charge of the Treasury Bills and demand for your hard copy of the Treasury Bills you did last week and it will be given to you. On the contrary, if the answers are NO, then it was not done and your money should still be intact In your account. So check your balance to confirm, except if they saw you as a newbie and had tricked you into signing for Fixed Deposit. 1 Like |
Re: Treasury Bills In Nigeria by TONY56: 5:37am On Aug 11, 2017 |
zamirikpo: The answers my friend is on this page. Just scroll down. Treasury Bills are not going to be discontinued in Nigeria. It's only about the Re-financing of the debt payments. They're still going to raise the funds through this very local Treasury Bills only that the repayment period or tenor will increase and that will give the CBN a breather. Also, click on to the site mentioned and read the government explanation yourself for better understanding |
Re: Treasury Bills In Nigeria by redcap: 5:42am On Aug 11, 2017 |
TONY56: Thx bro, I was actually debited after some days but I became indisposed. I will visit my branch this morning. |
Re: Treasury Bills In Nigeria by TONY56: 5:47am On Aug 11, 2017 |
redcap: That's good but were you credited with your upfront interest few day after? |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 6:58am On Aug 11, 2017 |
TONY56: If the Treasury Bill is refinanced, the funds from the refinanced debt ie TB will be used to pay the local investors whenever their TB matures. Rather than Nigerians providing short term funds to FG, this will be done by foreigners and Nigerians who have access to forex. I foresee a situation whereby yields on TB will reduce, forex may become scarce for local TB or Eurobond investors, thereby affecting the exchange rate. The government is trying hard to promote the savings bond. The winners as a result of this proposed policy are the banks and Federal Government. I see a situation whereby many A-list companies will come out for their corporate bonds and commercial papers, qualified state governments may also raise funds through bonds, l also see increase activities and returns from the stock market, hopefully things ought to start looking up in the real estate sectors. These are my layman's opinions, I hope I am 60% correct with my projections. |
Re: Treasury Bills In Nigeria by olujaidi: 7:01am On Aug 11, 2017 |
gnykelly: Why did you classify it junk? |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 7:03am On Aug 11, 2017 |
Toboi: That is why real investors try to invest in different asset classes, TB went as low as 10% about 18 to 24 months ago. FGN savings bonds may come to the rescue. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 7:08am On Aug 11, 2017 |
gnykelly: They are only for qualified and sophisticated international investors. Open your inner eyes, I see other opportunities for the smart investors in the Nigerian financial markets and investment terrain. |
Re: Treasury Bills In Nigeria by emmanuelewumi(m): 7:16am On Aug 11, 2017 |
zamirikpo: The issuing houses and the investment banks, packaging the deal would have looked at our ability of paying back the refinanced loan. Our ability to earn more dollars has increased with the current price of crude oil in the international market and all indicators are pointing to the fact that we are out of recession. |
Re: Treasury Bills In Nigeria by olujaidi: 7:22am On Aug 11, 2017 |
emmanuelewumi: In the first place, part of the rationale behind issuing NTB at such rates is to attract foreign investors to bring in USD. Upon maturity, these investors will repatriate the funds in USD which would have put a strain on USD supply. Meanwhile the CBN still needs to ensure exchange rate stability. Funding the FIs and sustaining the intervention in the fx market at the same time could be challenging. So, floating a bond in USD to refinance was probably the best option to ensure dollar liquidity for the repatriation by FIs and the local fx market demand. |
Re: Treasury Bills In Nigeria by odaniel1(m): 9:59am On Aug 11, 2017 |
chyima:i'm a bit stuck with how u make calculations for your yields, cld u hlp me throw more light? Say i invest 500k just as you have done for 91 days @ 17%....hw much will i be expecting and can i just roll it over to another 91 days tenor and on and on like that? Will appreciate your response maam, tnk u |
Re: Treasury Bills In Nigeria by redcap: 10:19am On Aug 11, 2017 |
TONY56: They actually debited me Less my interest. I have visited the bank they ask that I return later as they would have to copy a mail to head office and the the documents forwarded to them.thx bro. |
Re: Treasury Bills In Nigeria by tolajay: 10:34am On Aug 11, 2017 |
Thanks for the clarification. Need to get something started while the rates are high...Scared of this new idea by FEC. chukzyfcbb: |
Re: Treasury Bills In Nigeria by gnykelly(m): 10:46am On Aug 11, 2017 |
emmanuelewumi: most people here don't even know how to calculate time value of money. though they maybe lucky with their past investment. don't recommend it for them. it is only meant for professionals. |
Re: Treasury Bills In Nigeria by gnykelly(m): 10:48am On Aug 11, 2017 |
olujaidi: the rules have changed and this is for professionals. if you don't know I would advise you to checkout. |
Re: Treasury Bills In Nigeria by chukzyfcbb: 11:30am On Aug 11, 2017 |
odaniel1:for 91days at that condition, you will earn bout 21,000naira 1 Like |
Re: Treasury Bills In Nigeria by RealityShot: 11:36am On Aug 11, 2017 |
gnykelly:"CHECKOUT" of what? tolajay:scared of what? SIMPLE... If they sell TBills below INFLATION RATE..most investors will pull out...that will afftect liquidity/cashflow for the govt. They must continue TBills above inflation Rate . So they have found a cheaper source of loan to reduce the OVERALL COST of the loans.... 18% TBills + 7% Int Bond = 25% divide that by 2 to get the actual interest rate you get 12.5% for the next 3years... but TBills stays above inflation Rate locally.. everybody wins... 1 Like 2 Shares |
Re: Treasury Bills In Nigeria by Investnow2017: 12:23pm On Aug 11, 2017 |
RealityShot: I truly like your outlook and analysis, but what borders me is why the govt chose to float the Savings bond below the inflation rate of 16.1% and still expect that retail investors for whom it is targetted would patronise same. If you ask me, their present discovery of a much discounted int bond to refinance their costs of loans may not so much scale down the rates at which local TBills are auctioned unless they care less about liquidity factor. Overall though how can the implementation of the 2017 budget which is the driver for this fiscal initiatives drag down the inflation rate within the 6 months window left for this year? Unless something dramatic occurs like a steady rise in the price of oil and a deliberate declaration of emergency on infrastructure development, the whole effort of raising funds and refinancing costs of loans would all crumble on the altar of misappropriation - a continuous cycle of liability. I think i am even more concerned about how i can always cash in on any opportunity each step they take offers. 1 Like |
Re: Treasury Bills In Nigeria by chukzyfcbb: 12:28pm On Aug 11, 2017 |
RealityShot:Slow down bruh, Its not a clause that inflation must always be under Tbills rate. In 2016, the first four months of last year had inflation over Tbills , yet investors were still falling over themselves to invest in Tbills. Need to remind you that there has been pressures on the CBN to reduce their rates so that manufacturers can get loans at cheaper rates. Now Tbills rate will gradually come down seeing that inflation is also decreasing judging by the stats from NBS, present bout 16.25% leaving investors with net profit of 2% after Tbills investment. Now here is what I think, since euro bonds are to be issued more, -it certainly means the govt will influence Tbills ( MPR) to be sold at reduced rate which will cause a ripple effect on inflation, causing inflation to fall. - The exchange rate will improve knowing that foreign investors actually prefer Eurobonds to our stocks or debt instruments. Also causing another ripple effect in inflationary rates. Its my prediction that Tbills rate will reduce from 18% to find stability at say 15% if they go ahead with their plan 2 Likes 1 Share
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Re: Treasury Bills In Nigeria by abimbola01(m): 1:42pm On Aug 11, 2017 |
Greetings, Please, How can someone invest in CBN OMO ? Thanks Please, any hint ? |
Re: Treasury Bills In Nigeria by chyima(f): 1:55pm On Aug 11, 2017 |
odaniel1: on 500k your return should be about 21250 with 17% as the interest for 91days,yes you can rollover either with your upfront if its above 100k depending on your bank minimum or at the end of the tenure of the existing investment with the initial capiltal I do my treasury bill with stanbic ibtc and they have no option for re investment on their form ,so I invest in the primary market and receive my upfront ,with this upfront I reinvest in the secondary market cos I don't want to have access to the money for now and may not be able to wait till the next bidding in the primary market 1 Like |
Re: Treasury Bills In Nigeria by wellsaid(m): 2:37pm On Aug 11, 2017 |
Good afternoon all, please which day of the week do you think is best for one who wants to buy TB on the secondary market? For example is like favorable to buy from the secondary market on Mondays or Fridays? Which day of the week is it highly probable to have the best interest rate in these banks or is it that there is no correlation between the days of the week and interest rates? I use Stanbic and Diamond. Second question is do you get your interest upfront when you buy from the secondary market? I will appreciate a quick answer. Thanks |
Re: Treasury Bills In Nigeria by TONY56: 8:21pm On Aug 11, 2017 |
emmanuelewumi: Your projections are very good brother. Those are the possibilities. |
Re: Treasury Bills In Nigeria by TONY56: 8:26pm On Aug 11, 2017 |
redcap: Congratulations!!! |
Re: Treasury Bills In Nigeria by zamirikpo(m): 9:26pm On Aug 11, 2017 |
emmanuelewumi: TB rates may drop to around 15% but that is not my headache. ....my wahala is the tenures, from the usual 91 - 364 days to 2 - 3yrs. That's outright crazy. These woman minister is just scattering my 2018 projections. 2 Likes |
Re: Treasury Bills In Nigeria by odaniel1(m): 9:45pm On Aug 11, 2017 |
chukzyfcbb:Thank you, God bless you... |
Re: Treasury Bills In Nigeria by odaniel1(m): 9:47pm On Aug 11, 2017 |
chyima:Far too kind, thank you. 1 Like |
Re: Treasury Bills In Nigeria by Nobody: 10:22pm On Aug 11, 2017 |
zamirikpo:it for the dollar loan ,tb main purpose is to tackle liquidity in Naira/inflation ,provide short term loan 1 year its universal 1 Like |
Re: Treasury Bills In Nigeria by zamirikpo(m): 4:08am On Aug 12, 2017 |
Alikote: I don't understand......do u mean TB still remains max. 1yr tenure. I tot they changed it to btwn 2-3yr tenure. |
Re: Treasury Bills In Nigeria by RealityShot: 8:27am On Aug 12, 2017 |
chukzyfcbb:AGREED 1 Like |
Re: Treasury Bills In Nigeria by RealityShot: 8:37am On Aug 12, 2017 |
Investnow2017:savings bond covers a long period..2yrs crude price can rise, Buhari can win again, many things can happen ..thats why the rate for long term investments must be lower. i hate to say it but ELECTION PLANS have started! everything the govt does now must be tied to 2019 elections. This dollar Bond will expire AFTER that election, ring a bell? On paper, its a good deal..FIs dont have to convert to Naira again |
Re: Treasury Bills In Nigeria by casiello(m): 9:07am On Aug 12, 2017 |
chyima:Which branch? |
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