afroxyz:


Without the rate how did they arrive at the interest and how would we know you were cheated?

lets wait for the gurus to enlighten us.

Pharmtj:

guys I finally got my alert of 21,153.22k . invested 670k for 91days. primary market with FBN. Hope I wasn't short paid?

mhenn that's about 12.6% o. dropping fast.

abeg let this reflect on the prices of goods in the market na.. things are still expensive kai

C4Ltd:
mhenn that's about 12.6% o. dropping fast.

abeg let this reflect on the prices of goods in the market na.. things are still expensive kai

I thought as much.

Pharmtj:
I thought as much.

bet y did you opt for primary market na

C4Ltd:
bet y did you opt for primary market na

the FBN branch I went to. the lady I met at the tbills section was reluctant to gv me the rates for secondary market.

awesomeJ:
Happy Sunday everyone.

One of the main purposes of our interaction here would be to identify available opportunities for getting maximum returns on our investments.
Now for a while after we had the talk on true yield, there has been a number of people who now choose to reinvest their upfront interest.
But this WhiteChocolate's investment has brought something to my attention, and that is the fact that one can "SHORT SELL" this t-bills market to make some more bucks.

He got 460,000 on 8.265m in 63days. Guess what yield that represents a whopping 32.25% p.a. If in doubt, please do the math, and let's see what comes up.

Now, "short selling" in this market is only a once in a while thing, and it will only make sense to investors who do short term bills.

So whenever rates start taking a dip, and you're sure that over the next quarter, there could be up to a 2% cut in rates, then rather than buying a 91-day paper at 14%, you could buy a 364-day paper, and resell after 91 days at lower discount and thus push your returns to about 30% or more.

If any 91-day investor had tried this in q4'15, when rates dipped by about 7% The returns would have been about 40% p.a and peak discount for 91-day bills at that time was about 10.5%

perhaps this is one significant way banks make a portion of their t-bills profit.

So I hope we see the opportunity present in this strategy, and adopt it may be.

P.S By "short selling" I mean taking a bet that yield on t-bills will decline considerably in the near future.

Bro you making sense o.

but why did you calculate rate on 8m instead of 10m

"He got 460,000 on 8.265m in 63days. Guess what yield that represents a whopping 32.25% p.a. If in doubt, please do the math, and let's see what comes up."

Her investment was 10m and that should represent a whopping 26.6% abi?

Pharmtj:
the FBN branch I went to. the lady I met at the tbills section was reluctant to gv me the rates for secondary market.

that is where the cheating came in o. I usually insist or check another branch

C4Ltd:
that is where the cheating came in o. I usually insist or check another branch

first time sha with tbills. I now know how the stuff works

C4Ltd:
mhenn that's about 12.6% o. dropping fast.

abeg let this reflect on the prices of goods in the
market na.. things are still expensive kai

12.85%

I terminated my FBN 182 day FD last thursday. Much later same day, i went to another branch for TB, but was told none was available both in pry nor sec mkts. Today, I went to previous branch whr i did FD. I was told only pry mkt available. I filled TB form for 182 days & return it. Thereafter, i was told, my investment will wait for 2 weeks. I'm yet to know d rate. Hope all is well? Any advantage or disadvantage of pry mkt compared to TB in sec mkt?

Three secrets of Treasury Bills investing:

1) Buy long tenor if the rates are high and juicy - 16% up.
2) The Secondary Market offers better bargains if you are going for a short tenor (91 - 182 days).
3) Buy a long tenor when the rates are down and short-sell at your exit target.

Pharmtj:
lets wait for the gurus to enlighten us.

It's not a matter of waiting for 'gurus'. You are expected to know the rate and tenor that's what would make the offer attractive or not. It's just like saying you bought a car but you don't know if you were cheated when we don't even know how much your car cost in the first place. You can always check with the branch

Investnow2017:
Three secrets of Treasury Bills investing:

1) Buy long tenor if the rates are high and juicy - 16% up.
2) The Secondary Market offers better bargains if you are going for a short tenor (91 - 182 days).
3) Buy a long tenor when the rates are down and short-sell at your exit target.

gbam!

on point! I was about asking for the best scenario to short-sell.

ihedioramma:
FBN

Long time

C4Ltd:


Bro you making sense o.

but why did you calculate rate on 8m instead of 10m

"He got 460,000 on 8.265m in 63days. Guess what yield that represents a whopping 32.25% p.a. If in doubt, please do the math, and let's see what comes up."

Her investment was 10m and that should represent a whopping 26.6% abi?

Look at it this way, u earn interest at the end of tenure. She invested 8.265m hoping to return 10m, capital plus interest.

afroxyz:

It's not a matter of waiting for 'gurus'. You are expected to know the rate and tenor that's what would make the offer attractive or not. It's just like saying you bought a car but you don't know if you were cheated when we don't even know how much your car cost in the first place. You can always check with the branch

12.86%

Investnow2017:
Three secrets of Treasury Bills investing:

1) Buy long tenor if the rates are high and juicy - 16% up.
2) The Secondary Market offers better bargains if you are going for a short tenor (91 - 182 days).
3) Buy a long tenor when the rates are down and short-sell at your exit target.

Lol at no. 3, dats trading, na to start to dey plot charts with candle sticks looking for resistance and support points, even scalp sef.

Hello house.Please when is the next auction date?

C4Ltd:


Bro you making sense o.

but why did you calculate rate on 8m instead of 10m

"He got 460,000 on 8.265m in 63days. Guess what yield that represents a whopping 32.25% p.a. If in doubt, please do the math, and let's see what comes up."

Her investment was 10m and that should represent a whopping 26.6% abi?

10m was just the face value. The actual amount that was lent out was 8.265m. That's how much she was debited right?

Chibuking81:
Long time

NO see, thank GOD there is life.

awesomeJ:

10m was just the face value. The actual amount that was lent out was 8.265m. That's how much she was debited right?

did mods delete the original post? can't find it.

Yeah 8.265m was debited but if she had left it for the initial 364 days, 10m would have been credited back to her. ie 10m principal plus "upfront" interest abi?

ositadima1:


Look at it this way, u earn interest at the end of tenure. She invested 8.265m hoping to return 10m, capital plus interest.

I dunno if the original post was deleted but 10m was what she invested:

"I just wanna share the following
I got a NGN 10,000,000 tbills at 17.3880% on the 14/09/2017. The Discount value was NGN 8,265,963.84. I needed money urgently to secure a property so I terminated prematurely on the 17/11/2017. I was told it was gonna be sold on secondary market for 15.6%. I was actually fearful because of the 25% penal charge we have always talked about here; that doesn't exist by the way or maybe I don't get how that works because I was credited with NGN 8,726,027.40. I got a total of NGN 460,063.56. I see no deductions whatsoever anywhere and the head of service support told me the penal charge of 25% did not exist. For those who had experienced that in the past could it be a bank thing? Just thinking aloud"

Pharmtj:
12.86%

Wow. That's low. How many days tenor if I may ask?

Bad Maths, 32.25?,

Bro u are wrong, may be u calculated with 800k instead of 8m.

C4Ltd:


Bro you making sense o.

but why did you calculate rate on 8m instead of 10m

"He got 460,000 on 8.265m in 63days. Guess what yield that represents a whopping 32.25% p.a. If in doubt, please do the math, and let's see what comes up."

Her investment was 10m and that should represent a whopping 26.6% abi?

mehnnnn, am really loving this thread......God bless whoever that created this.....

Kingstel:
I need a business minded person...
In Abuja...

Contact me.

bros let's talk business, I PMed u

Investnow2017:
Three secrets of Treasury Bills investing:

1) Buy long tenor if the rates are high and juicy - 16% up.
2) The Secondary Market offers better bargains if you are going for a short tenor (91 - 182 days).
3) Buy a long tenor when the rates are down and short-sell at your exit target.

Pls how can someone know this? Explain more

Rizin:
Bad Maths, 32.25?,

Bro u are wrong, may be u calculated with 800k instead of 8m.

@ "Bad Math"... said with so much confidence and shock

Bro the guy was right about 32.25% on 8...million for 63 days.

I'm only asking why 8m instead of 10m invested. koba ha kabaa? yowa

Kemade2007:


Pls how can someone know this? Explain more

you guys want to short change banks with this juicy secret abi?

@ur emboldened: (considering the other factors he stated) if your target tenor is 91, go for 364... after 91days, "short sell"... your rate would experience the RESURRECTION

Average T-Bills Yields Drop as CBN Suspends OMO Auction
https://www.businesspost.ng/2017/12/05/average-t-bills-yields-drop-cbn-suspends-omo-auction/

C4Ltd:
you guys want to short change banks with this juicy secret abi?

@ur emboldened: (considering the other factors he stated) if your target tenor is 91, go for 364... after 91days, "short sell"... your rate would experience the RESURRECTION

. That's interesting. Thanks for the guru in the house. Kudos

C4Ltd:
you guys want to short change banks with this juicy secret abi?

@ur emboldened: (considering the other factors he stated) if your target tenor is 91, go for 364... after 91days, "short sell"... your rate would experience the RESURRECTION

But let us know that ds can only be viable if the bank doesn't have penal charge like stanbic