speedyconnect3:
[b][/b]


I need to understand this please.
See this scenario.


If inflation rate is 12% this year and in 2019 its 14%. That's 2% rise.


If I do t bills at 15% in 2019, does it mean that I gained 13% because of 2% rise. Or that I gained 1% because inflation is 14% in 2019.


Gonfreecss1

Feelamong
Ahiboilandgas
Nl1960
Zamirikpo
Acidosis
Realityshot
Et al

What you are asking for is the "real return" or "real interest rate" on your investment which represents the increase (or decrease) in the purchasing power of your invested funds after factoring in inflation. To find the real return/interest rate, you simply take the nominal interest rate (that is the TB interest rate) and subtract the inflation rate. In your example, it will be 15% (nominal TB interest rate) minus 14% (inflation) which will give you a 1% real return.

BiafraIShere:
Please when was the last TBills sold by CBN and when is the next one coming up?
It seems like Zenith Bank is playing games with me. I gave them instruction to invest 1.6 million in TBills for 90 days tenor since last week Monday, yet the money has remained in my account. They tried to dissuade me against TBills and rather wanted me to go for FD but I refused flatly based on better interest rates of the former.
I need to know the date please, and also if it's possible to go for secondary market and invest for just 2 months instead of 3.

HELP PLEASE!

According to the gurus �, the next auction is 29/11/2018 and if I will advise you according to the gurus,dump zenith bank and take your money to either Firstbank or Stanbic IBTC

katamo:

What you are asking for is the "real return" or "real interest rate" on your investment which represents the increase (or decrease) in the purchasing power of your invested funds after factoring in inflation. To find the real return/interest rate, you simply take the nominal interest rate (that is the TB interest rate) and subtract the inflation rate. In your example, it will be 15% (nominal TB interest rate) minus 14% (inflation) which will give you a 1% real return.

I think he's supposed to consider the inflation rate for 2020 (maturity date), not 2019 (value date). Short-term tenors are exemptions though.

Good morning y'all, I must say this is the most educative tread on nairaland so far....kudus to all the stakeholders and everyone that has been making it so.
In order to tap into the ongoing discussion. Looking at the dollars rate, its obvious that the CBN has been doing a good job of saving the naira. My question is. What is the probability that the dollars rate will remain stable before the general election?
Will it be worth the risk?

billtommy:
Good morning y'all, I must say this is the most educative tread on nairaland so far....kudus to all the stakeholders and everyone that has been making it so.
In order to tap into the ongoing discussion. Looking at the dollars rate, its obvious that the CBN has been doing a good job of saving the naira. My question is. What is the probability that the dollars rate will remain stable before the general election?
Will it be worth the risk?

Wetin concern Tbills concern dollar rate na? Abi you wan start another round of arguments?

Grupo:


Wetin concern Tbills concern dollar rate na? Abi you wan start another round of arguments?

Iamzik:

Another experience up there.
Both Tbill and forex have their own risk
The most important thing is to know WHEN(TIME) to invest and when to divest
QED

please what are the risks in treasury bills?

Agbaletu:
We have many eggheads here. Well done guys! The argument is very healthy for our investment/savings.
Each time I see the money in my $ Dom account, it make me sad. Can't convert to Naira to buy Tbill. Bought at N400 and now it is N360. I have decided to forget it until something positive happens.

so you are down 11.2% so what? For how long?
Tbills is at 14+% right now.

Convert to naira and invest now and get 2% profit UPFRONT.
And please stop praying for bad things to happen to our naira - it
affects us all as long as you live in naija

Reinvest the upfront if possible to increase your profits.

Happy investing

billtommy:
Good morning y'all, I must say this is the most educative tread on nairaland so far....kudus to all the stakeholders and everyone that has been making it so.
In order to tap into the ongoing discussion. Looking at the dollars rate, its obvious that the CBN has been doing a good job of saving the naira. My question is. What is the probability that the dollars rate will remain stable before the general election?
Will it be worth the risk?

it will remain stable : Buhari needs it to stay that way or his toast!

By the way, crude prices are looking OK for now so our dollar income is way above budget.. CBN can keep up with the defense.

Grupo:


I seem to be the only one here who understands what you are saying.

Honestly, I can't call Tbills an investment.

then explain why our banks (only the top 5)
Put in over 267 billion naira in treasury bills last year?

Please explain what an investment means to you?

GonFreecss1:


I am wondering, did you ever see me say "do not buy Tbills?"

This is why I dislike advising Nigerians. They become hostile towards the truth. The same reason why the country is in shambles today.

I just stated some facts about what we are all putting our money in, me included. Also the importance about hedging and the risk of higher rates, inflation and not considering buying power.

Tell me, are we only to come here to discuss how good 16/18% rates are good? How we are becoming richer? Without understanding anything about Tbills? Or factors that affect rates? Or why higher rates should make you scared? It's almost like investing in something and expecting more returns without understanding the implications or why there should be more returns.

I am sorry for saying the truth about our safe investment, Tbills. I am sorry for trying to make people understand money more. I am sorry for saying anything at all in the first place. I can see I might be the enemy to so many people's dreams of becoming rich through Tbills, I apologize.

from your previous post, you don't seem to realize the power of crude oil exports and the dollar earnings from it.

When you do, you will know why Nigerian treasury-bills is such a solid investment.

Hmm.. In short... When you buy treasury bills,
You are loaning government money and expecting to get
A cut from their total earnings.

So as long as Nigeria sells sweet crude she must pay up!

Otherwise, when next she needs money BEFORE her crude sales checks clear,
She will be begging us with higher rates!

Higher rates don't mean bad for us, it means the government needs money fast!


Understand the business you are doing and sleep like a baby.

Think of Tbills like building a house that is foldable and movable every year or less.

What was Gtbank or StanbicIBTC last primary rate for 91,182 and 364 tenors .

Next TB primary auction is 29/11/2018. I want to lock up 15mill for 364, targeting 14% rate which is around 2,100,000.00 Naira.

Tbill is really a sweet investment when you have idle cash .

Please Gtbank and stanbic which one gives better rates in Primary market .

I have used FBN , their rates are not so good.

Internetboy:
What was Gtbank or StanbicIBTC last primary rate for 91,182 and 364 tenors .

Next TB primary auction is 29/11/2018. I want to lock up 15mill for 364, targeting 14% rate which is around 2,100,000.00 Naira.

Tbill is really a sweet investment when you have idle cash .

Please Gtbank and stanbic which one gives better rates in Primary market .

I have used FBN , their rates are not so good.

Stanbic

Acidosis:


I think he's supposed to consider the inflation rate for 2020 (maturity date), not 2019 (value date). Short-term tenors are exemptions though.

You would need to consider the inflation rate for the term of the TBill. So if you invest at the beginning of January 2019, you will look to the expected inflation rate for 2019. Also, be sure to use the true yield of the TBill in the calculation for a more accurate result. In this example, a 15% one-year TBill rate results in a true yield of 17.6%.

dammy222:

Stanbic

I guess as much, their testimonies are numerous on this forum. I need to open an account with them tomorrow. ASAP.

RealityShot:
it will remain stable : Buhari needs it to stay that way or his toast!

By the way, crude prices are looking OK for now so our dollar income is way above budget.. CBN can keep up with the defense.

I thought so too, May God bless your words

billtommy:


I thought so too, May God bless your words

Please can you state where we can be monitoring the crude oil prices. Do you normally update urself on random news, or you check a particular site(s)? (for crude prices)

On the stable economy you quoted with reasons, I pray so because I'm lockup for 364 days in next primary auction.

RealityShot:
it will remain stable : Buhari needs it to stay that way or his toast!

By the way, crude prices are looking OK for now so our dollar income is way above budget.. CBN can keep up with the defense.

Either you know something others don't, or you are part of those who rely heavily on hopium. Oil prices will never always be good, buying up naira consistently is not sustainable.

RealityShot:
it will remain stable : Buhari needs it to stay that way or his toast!

By the way, crude prices are looking OK for now so our dollar income is way above budget.. CBN can keep up with the defense.

Definitely too much hope. Optimism is good but basing investment strategy on optimism is not a good way to go.

RealityShot:
then explain why our banks (only the top 5)
Put in over 267 billion naira in treasury bills last year?

Please explain what an investment means to you?

Lol! So because all banks put money in something makes them smart? Or makes them know what they are doing? Hahahahahahahahahahahaha

Go and ask about what happened in the US in the last global financial crisis. After you do that, I will advise everyone in the house including you, to watch the movies "The Big Short" and "Margin Call", you will gain a very important lesson from it.

GonFreecss1:


Definitely too much hope. Optimism is good but basing investment strategy on optimism is not a good way to go.

Based on the realities of what is happening in the present, the future can be predicted. He only stated an opinion, not a fact....if you have a conflicting opinion on the subject matter, pls state it and let's all learn from you.

RealityShot:
from your previous post, you don't seem to realize the power of crude oil exports and the dollar earnings from it.

When you do, you will know why Nigerian treasury-bills is such a solid investment.

Hmm.. In short... When you buy treasury bills,
You are loaning government money and expecting to get
A cut from their total earnings.

So as long as Nigeria sells sweet crude she must pay up!

Otherwise, when next she needs money BEFORE her crude sales checks clear,
She will be begging us with higher rates!

Higher rates don't mean bad for us, it means the government needs money fast!


Understand the business you are doing and sleep like a baby.

Think of Tbills like building a house that is foldable and movable every year or less.

You are assuming a whole lot, from thinking I don't understand Treasury Bills to crude oil exports. Lol!

Lol. Who said anything about the government not being able to pay back? I have never said that. I don't care about my returns in naira if my buying power keeps reducing. I have only preached one thing here and that is buying power!

So many of us place too much faith in Government and Banks, this is good short term, but history will always tell the truth about how there is nothing too big to fail. From banks, to government.

I really want to say more, but because of the complication in mentioning a particular word, I will leave this matter for now.

billtommy:


Based on the realities of what is happening in the present, the future can be predicted. He only stated an opinion, not a fact....if you have a conflicting opinion on the subject matter, pls state it and let's all learn from you.

He is basically saying Oil prices will forever be good and Nigeria will keep making money from it. He is also saying Nigeria using the forex earned from this crude oil to buy naira to keep prices normal is sustainable. Since when did we have so much faith in the Nigerian government's interest in the people? Lol, how many of us here have insurance or trust insurance companies? Integrity is hard in Nigeria. Since when did we believe the Nigerian government are good financial risk managers? Go and look at the history of our declining buying power rate of the naira to understand. Even with all this, I still buy Treasury bills directly or indirectly, and I never said people shouldn't, my question now becomes what are we doing here if not to say the truth or advice other people about some things? Should I bask in mediocrity and pretense and keep doling out the fairy tale without saying the truth all because I don't want to make people uncomfortable? Thinking about it now, I can say this is one of the problems we have in the country.

If you all think inflation rate is actually 11-12%, you are not understanding yet. I have consistently beat both the NSE, and the actual inflation rates (which I believe is 25%+) for some time now, and my buying power keeps on improving.

I do not intend to scare the newbies, Treasury bills are good, they are safe. They are rated Triple A (AAA), this is a very good rating. A rating I don't take lightly, but then I am not one that minces words and I apologize for that, but if you want to preserve your buying power the real bitter painful truth is this, Treasury Bills alone won't do that for you.

Is it still possible for one to invest 100k in tbill as at now.

veneza:
Is it still possible for one to invest 100k in tbill as at now.

You should. Walk into a good bank and make inquiries, though it will probably be a secondary market rate.

GonFreecss1:


You should. Walk into a good bank and make inquiries, though it will probably be a secondary market rate.

secondary market rate with hope of like how much interest, am a newbie though but learnt about it lately.

veneza:


secondary market rate with hope of like how much interest, am a newbie though but learnt about it lately.

To be honest, I don't know. Till you talk to the banks in question.

feelamong:


Officially you can invest as little as N1000. But because of the paper work involved and for the fact that the fees u pay to them is very low, most banks and discount houses insist on a min of 100k to N1M.

If you are interested send me a mail to feelamong@gmail.com ..I will introduce you to a friend in a discount house.

Am interested

good one

veneza:
Is it still possible for one to invest 100k in tbill as at now.

100k will only give you around 13 to 14k in one year. If I were you, I would think again. Even buying and selling pure water in front of your house with 100k will likely give you more than 10k a month.

Grupo:


100k will only give you around 13 to 14k in one year. If I were you, I would think again. Even buying and selling pure water in front of your house with 100k will likely give you more than 10k a month.

Not everybody has time to do business due to work. Reason why people like this opt in for tbills rather than leave the money in bank account. There is difference between Investment and business

Yem0350:

Not everybody has time to do business due to work. Reason why people like this opt in for tbills rather than leave the money in bank account. There is difference between Investment and business

Then invest in yourself. If you could only save 100k after several months of working, it means you have a low paying job. So what you should do is invest the money in your personal development, get new certifications, training, etc. All these will increase your chances of earning more and when you do, you start considering Tbills then.