diamond88:
anyone knows the current secondary rate of stabic ?

219 days - 10.75
107 days - 10.20
170 days 10.45

That's about it for today.

diamond88:
anyone knows the current secondary rate of stabic ?

Heading to Stanbic now.

Chienex24:


Pls how much did you use to buy? Because I am planning on buying but i am with only a paltry sum of 450k....

That one doesn't concern you. Carry your money and go and buy... Alakoba!!!

I got 13% for 62 days at secondary market from Stanbic IBTC on 02/02/2018.

TONY56:


Very beautiful!!!
I also rejoice with you and wish you well this year.

There's one thing that you may also not realise that you did to a lot of people on this thread-
You were the person who made many to know that Union Bank Charges 25% of the upfront interest for termination of TBs.
You equally made some of us on this thread to be able to prove to doubting Thomases that it's actually possible to gain by terminating TB depending on the rate it was purchased vis-a-vis the rate it's sold.

Happy new year!

The last part was MEEEE

Anitaah:
Am still yet to understand why she just wasted the material lik that

Wasted which material?? You need to see the savage comments on Instagram. They said she bought half yard and joined it with okrika pieces... LMAO

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.

I didn't even know it will end like this. When the bank told me they were gonna sell for 15.6 or so I panicked but when alert came I discovered they sold it for me and gave me the excess also. To say I was elated is an understatement. 'Short-selling' is BAE!!!

TONY56:


My friend,
He has told you what he got at the end of the day as his profit and you're saying it's false because you have not taken the trouble to do a deligent calculation.

I will therefore prove to you now that it's not false:

He invested N10,000,000. @17.388% for 364days and got N1,738,800 as his upfront interest before other deductions. He was debited N8,265,963.8, meaning that he got a profit of N1,734,036.2 after deductions.

For terminating it after just 63days and with NO PENAL CHARGES BY STANBIC BANK, it means N1,738,800 ÷ 364days × (364-63)days =N1,437,853.9 was deducted from what he had collected as upfront interest, leaving him with N300,946.1.

Now, selling it @15.6% instead of the 17.388%he bought it because rates have come down now means he is selling it at a profit of 1.788%.

1.788% of N10,000,000 is N178,800.

Therefore his total gain is N300,946.1(for 63days)
+N178,800 (for selling at a profit)
=N479,746.

So my friend, for @whitechocolate to have told us that he made a profit of N460,063.56, he has told us NOTHING BUT THE ABSOLUTE TRUTH and the difference in my calculation and what he said he got MUST be the transaction costs and other sundry charges which is about N19,682.44.


In view of the trouble you have made me to go through to clinically prove that @whitechocolate NEVER LIED, and the fact that you cast aspersions on his person, I humbly demand that you apologise to him and just say thank you to me.

Why would I even lie in the first place?? Lol. You did good. Thumbs up and cheers to my gain

opeyemmmy:


Sorry to butt in, this is not impossible.

The bank is selling his investment at the secondary market at a lower yield - 15.6% (because Tbill rates had fallen) compared to when he bought it - 17.388%, which means the holder to maturity will earn less than the initial yield on the bill.

So besides the interest accrued on his investment for the 63 days(?) he held it, he has also made some profit on sale arising from yields dropping by 1.788%.

This, I believe, is what his bank has used in calculating his payout.

I sold and made gain... Simple. Thank you ojare.

Partnerbiz:

I now believe.

Where is my apology naaa??

GodMercy2015:

Please is the rate for primary market or secondary market.

secondary market

NoQualms1:
Got 92 days at 14% today at First bank.

Me too but from Stanbic IBTC Bank.

An Unsung Hero

TONY56:



You probably did not follow the story from the beginning and you did not specify your bank which obviously is not UNION BANK.

The "complainant" said he did the investment with UNION BANK and the bank indicated in the transaction papers that if he terminated the Investment before maturity, he would be charged a penal fee of 25% of the upfront interests apart from other fees.

So it's a UNION BANK policy or conditions like when they say "Terms and conditions apply".

And that's why one should endeavour to read all the terms and conditions before doing any business.

You see, he like some others saw it and still went ahead to sign the deal. Some people are dogmatic in nature and will tell you that they are used to banking with a particular bank for many years and would not want to move to better bank.

That's one of the resultant effects. And unfortunately, Union is not among the top 5 banks that gets good bids at the NTB auctions. So why should an investor even do NTB with them in the first place when you can get far better from banks like Stanbic, First, Gtb, Zenith etc.

So it's a UNION BANK policy that does not apply to all banks.

Lastly, many who followed the story must have learnt a lesson from his ordeal and that's one of the objectives of this beautiful thread

Stanbic IBTC Bank. Thanks for the clarification.

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