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Nairaland Forum / Nairaland / General / Investment / Treasury Bills In Nigeria (4608511 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 haibe(m): 6:21pm On Jan 07, 2018 |
realjidejamal: Pls what did he mean by the rate it was purchased/sold. Is he talking abt the actual interest rate? Does it mean if i purchase t bills with a discount rate of say 10%, i can sell this same t bills to the bank at a different rate of say 12% if that is the prevailing rate. Also does the T bills rate actually change everyday? Thanks |
Re: Treasury Bills In Nigeria by BBFE: 6:25pm On Jan 07, 2018 |
haibe: The formula for effect yield is. 1/(1-rate). This has been discussed here on several occasions. 1/(1-0.14)=16.2791. |
Re: Treasury Bills In Nigeria by WhiteChocolate(f): 6:29pm On Jan 07, 2018 |
TONY56:The last part was MEEEE ![]() ![]() ![]() 1 Like |
Re: Treasury Bills In Nigeria by haibe(m): 7:06pm On Jan 07, 2018 |
BBFE: Oh thanks. I see we have a different definition of what effective interest rate is. The 16.2% using that method is simply the current yield and nothing more; its the same as simply dividing the interest over the amount invested. i.e (ROI) (1120/6880). From my understanding in finance, i will say several factors affect what your effective yield is; the basic one's are the issue price (the 6880k invested), the interest rate of 1120k, the redemption amount of 6880k and more importantly the timing of these cash flows. The fact that interests are paid upfront will significantly affect the yield to maturity/effective yield than if they were paid, say at the end of the first year when the investment matures. The concept of time value of money is very key to determining the yield to maturity and thus will be the reason why i am getting 19% and not 16%. It may be fine to base investment decisions based on current yield like you have done especially if you dont plan to roll over the interest payment/reinvest in a different source ; if you do, then time value of money becomes important and the yield to maturity should be used in making the decision rather than a mere ROI. |
Re: Treasury Bills In Nigeria by katamo: 8:33pm On Jan 07, 2018 |
You are getting 19% because your cash flows are incorrect. At the time of investment (what you call yr 0, the cash flow if -6,668,000. The upfront interest is already accounted for in that number (i.e. 6,880,000=8,000,000 - (8,000,000* 14% [this is upfront interest]). At maturity (yr 1), you get the face value of 8,000,000 and not 6,880,000. If you calculate the IRR based on these cash flows you should get back to the right number. haibe: 1 Like |
Re: Treasury Bills In Nigeria by C4Ltd: 8:33pm On Jan 07, 2018 |
WhiteChocolate:True that was you ![]() |
Re: Treasury Bills In Nigeria by haibe(m): 8:44pm On Jan 07, 2018 |
katamo: Oh if I get u correctly; the upfront interest is in form of a discounted amount to your investment, not like you are receiving it as an actual cash on that day? If this is the case, does it not mean we actually get the interest on redemption rather than upfront? As in i invest 6680 and get 8000 in 1 year time, the interest is effectively in one yr time too? |
Re: Treasury Bills In Nigeria by TONY56: 9:25pm On Jan 07, 2018 |
haibe: Yes. The TB rates changes daily at the secondary market depending on the prevailing primary rate, demand and availability. But mind you, you can only make profit if you sell at lower rate to the rate you bought. If you sell at higher rate, you get less. Before you start asking me how, go to page 436 and few pages before that page for better understanding on how and why it's so 1 Like |
Re: Treasury Bills In Nigeria by TONY56: 9:39pm On Jan 07, 2018 |
WhiteChocolate: ![]() ![]() ![]() You said it o. Not me. Brother, it is well with you and me. Happy new year as we all learn everyday |
Re: Treasury Bills In Nigeria by haibe(m): 11:49pm On Jan 07, 2018 |
ositadima1: @bolded So basically i am getting the interest (10m - 8.26m) at the end of the tenure right? Begining if tenure i pay 8.26m End of tenure i get 10m Is this correct? |
Re: Treasury Bills In Nigeria by ihedioramma: 5:03am On Jan 08, 2018 |
[quote author=realjidejamal post=63971792]Happy New Year Everyone! I am the guy who wanted to terminate his Union Bank Treasury Bill Investment late last year. This is to inform everyone that I didn't later terminate the TB as I decided to source for funds else where. However, I approached the bank for a loan during that time using one of my TB as collateral but the interest % with term and condition made me run for my dear sweet life. I was offered 26% interest on the loan which I will be servicing every month and if I failed to fund my account for them for the deduction every month, they will deep there hands into my TB and converted it into FD so they can service the loan. They are seriously mad ooo. Can you all imagine that cruelty. Well I ran for my dear life and decided not to proceed with the loan and the TB termination. I later persuaded a friend who owe me to help by paying his loan which he did and my money problems was taken care of though not all but it helps and my . AMEN . THANK'S . |
Re: Treasury Bills In Nigeria by TONY56: 8:30am On Jan 08, 2018 |
Re: Treasury Bills In Nigeria by dipoolowoo: 9:04am On Jan 08, 2018 |
Market Anticipate N309.1b Maturing Bills as Yields Expected to Drop https://www.businesspost.ng/2018/01/08/market-anticipate-n309-1b-maturing-bills-yields-expected-drop/ Qfac Pick of the Week: United Bank for Africa (UBA) Plc https://www.businesspost.ng/2018/01/08/qfac-pick-week-united-bank-africa-uba-plc/ Dangote Cement Shares Fall Amid Dispute With BUA Cement https://www.businesspost.ng/2018/01/08/dangote-cement-shares-fall-amid-dispute-bua-cement/ |
Re: Treasury Bills In Nigeria by Nobody: 9:59am On Jan 08, 2018 |
Just got 13.45% from first bank for 143days. Account debited, interest yet to drop. |
Re: Treasury Bills In Nigeria by damilola1978: 10:18am On Jan 08, 2018 |
When did you get from Them? GODAKPAN: |
Re: Treasury Bills In Nigeria by Nobody: 10:32am On Jan 08, 2018 |
About an hour ago, over 10m still available |
Re: Treasury Bills In Nigeria by Parisfran(f): 2:16pm On Jan 08, 2018 |
GODAKPAN:Access is giving 11 percent for the same period ![]() |
Re: Treasury Bills In Nigeria by ozymes: 6:26pm On Jan 08, 2018 |
I know naaa. I want him to answer the questions so he can technically expose his scam Pharmtj: |
Re: Treasury Bills In Nigeria by ozymes: 6:33pm On Jan 08, 2018 |
Yes, you get cool 10m cowries if you did not terminate before maturity haibe: |
Re: Treasury Bills In Nigeria by bendo75(m): 9:52pm On Jan 08, 2018 |
As the TB rates are declining, I think it will be wise to diversify may be put a little into Cryptocurrency. I will recommend Ethereum. |
Re: Treasury Bills In Nigeria by olujaidi: 10:18pm On Jan 08, 2018 |
bendo75: Err.....who asked you? ![]() |
Re: Treasury Bills In Nigeria by haibe(m): 10:28pm On Jan 08, 2018 |
ozymes:why then do people callthe interest an upfront interest |
Re: Treasury Bills In Nigeria by ozymes: 10:47pm On Jan 08, 2018 |
Forex and liquidity boom is a cycle. Do not burn your finger. All my almost 11 years career in banking without clear understanding of TB is really regrettable. But since late 2016 that mua tumbled on this thread. Do you want to ask me my candid opinion? the security of my hard earned capital is key.whatever returns I get from CBN/FGN TB? I remain with TBs. bendo75: 12 Likes |
Re: Treasury Bills In Nigeria by bendo75(m): 11:46pm On Jan 08, 2018 |
ozymes: I am with you bro. Crypto is not for the faint-hearted. Crypto has lots of volatility but thanks to Feelamong for introducing it here last year. After weeks of research about Crypto, I decided on Ethereum with what I can afford to lose. I agree you invest 100% in TB if you don't have balls of steel. Peace 4 Likes |
Re: Treasury Bills In Nigeria by ozymes: 12:12am On Jan 09, 2018 |
Because the transaction in -principle is discounted sir haibe: |
Re: Treasury Bills In Nigeria by ozymes: 12:15am On Jan 09, 2018 |
After all said and done: I nor fit shout! Na so we dey talk am for waterside. bendo75: |
Re: Treasury Bills In Nigeria by ebenezer880(m): 12:45am On Jan 09, 2018 |
Good morning sir, i am ebenezer, please sir i dnt really want to bother u with this but have no choice, i recently gained admission into fed poly ado, but things has been a little hard for my parent now, please i need a financial support, no amount is too small, i have not paid my school fees 28,050 also my house rent 11,000, please no amount is too small may God bless you, your family thanks, my account details are below oluwatunmise ebenezer 0058986339 union bank
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Re: Treasury Bills In Nigeria by dipoolowoo: 4:25am On Jan 09, 2018 |
Rates Remain High as T-Bills Market Bearish on Tight Liquidity https://www.businesspost.ng/2018/01/09/rates-remain-high-t-bills-market-bearish-tight-liquidity/ Stock Recommendation for the Week (January 8, 2018) https://www.businesspost.ng/2018/01/09/stock-recommendation-week-january-8-2018/ |
Re: Treasury Bills In Nigeria by purplerain(f): 11:52am On Jan 09, 2018 |
Hello guys, I just bought TB from Stanbic's secondary market. I am yet to receive my alert, but I want to know if the secondary market works like the primary, such that I get the interest upfront? |
Re: Treasury Bills In Nigeria by Donvitalis(m): 1:19pm On Jan 09, 2018 |
purplerain: It works the same; exercise some patience. |
Re: Treasury Bills In Nigeria by easyflow: 1:51pm On Jan 09, 2018 |
Got alert yesterday @ 13.35% for 187 days. Stanbic |
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