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Please advice - choice on duration of TBill
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lovely2010
#1 Posted : Sunday, October 16, 2011 7:07:36 PM
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Location: nairobi
Is it wise to buy treasury bills for 3 months, 6 months or 1 year?...I did the maths and I think one gains more when buying for three months but due to bank transfers you end up spending a lot. Also time wastage...If you buy for one year you waste less time and also you get bulk interest at once...Im I right?
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youcan'tstopusnow
#2 Posted : Sunday, October 16, 2011 11:02:59 PM
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With you putting up a minimum of 100k, i doubt the cost of bank transfers would stop you from going for the 3 months T-Bill. And more importantly, 1 year is a long time for macroecomic factors to change. Would you risk having your money tied up for that long while the market recovers?
GOD BLESS YOUR LIFE
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lovely2010
#3 Posted : Sunday, October 16, 2011 11:39:45 PM
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youcan'tstopusnow wrote:
With you putting up a minimum of 100k, i doubt the cost of bank transfers would stop you from going for the 3 months T-Bill. And more importantly, 1 year is a long time for macroecomic factors to change. Would you risk having your money tied up for that long while the market recovers?



According to my bank they charge Ksh.500 to do the transfer if you have a cheque book and 1000 if you dont have the cheque book. I had extra 500k so was wondering if I should do one year or just 3 months...
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youcan'tstopusnow
#4 Posted : Monday, October 17, 2011 12:03:36 AM
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lovely2010 wrote:
youcan'tstopusnow wrote:
With you putting up a minimum of 100k, i doubt the cost of bank transfers would stop you from going for the 3 months T-Bill. And more importantly, 1 year is a long time for macroecomic factors to change. Would you risk having your money tied up for that long while the market recovers?



According to my bank they charge Ksh.500 to do the transfer if you have a cheque book and 1000 if you dont have the cheque book. I had extra 500k so was wondering if I should do one year or just 3 months...


I would go for 3 months
GOD BLESS YOUR LIFE
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Cde Monomotapa
#5 Posted : Monday, October 17, 2011 6:04:11 AM
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Weuwe...another of Wazua celebrity couples ;-)
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youcan'tstopusnow
#6 Posted : Monday, October 17, 2011 6:17:56 AM
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Cde Monomotapa wrote:
Weuwe...another of Wazua celebrity couples ;-)

Laughing out loudlyDancing with the stars ni lini?
We'll send a special invite to guru+QW
GOD BLESS YOUR LIFE
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Cde Monomotapa
#7 Posted : Monday, October 17, 2011 6:20:31 AM
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I'll concur with @ycsun that U focus on 91 days as the outlook for the real economy is improving. Also ensure to give rollover instructions as whatever rate quoted on the GoK paper is PER ANNUM for example the rate now is15% divided by 365 days.
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Impunity
#8 Posted : Thursday, October 20, 2011 9:03:35 AM
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why bank charges?Si then I just deposit directly into CBK account,is this possible?
With an interest of about 3000 for 100K invested for 3 months,deducting 500 or 1000 is unbearable!
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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lovely2010
#9 Posted : Thursday, October 20, 2011 11:47:01 PM
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Impunity wrote:
why bank charges?Si then I just deposit directly into CBK account,is this possible?
With an interest of about 3000 for 100K invested for 3 months,deducting 500 or 1000 is unbearable!


If you do rtgs or eft, bankers cheque, you will definately be charged...unless ur walalo and can walk with lots of money and a gun on your belt...then thats fine...there would be no charges...
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Impunity
#10 Posted : Friday, October 21, 2011 7:02:56 PM
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lovely2010 wrote:
Impunity wrote:
why bank charges?Si then I just deposit directly into CBK account,is this possible?
With an interest of about 3000 for 100K invested for 3 months,deducting 500 or 1000 is unbearable!


If you do rtgs or eft, bankers cheque, you will definately be charged...unless ur walalo and can walk with lots of money and a gun on your belt...then thats fine...there would be no charges...


The trasnfer charge should be one way, i.e me sending the CBK bankers cheque or EFT.
On maturity the cost should go to CBK since they will be paying me back my "soft" loan.
So for the case above I expect to be charged not more than Kes.500...

And by the way "member" charges a meagre Kes.100 for all bankers cheque!smile smile
Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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tony stark
#11 Posted : Saturday, October 22, 2011 4:33:56 PM
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Cde Monomotapa wrote:
Weuwe...another of Wazua celebrity couples ;-)

Comrade mwene mutapa .... hii ni nini/ hawa ni nani? or are you bloated on sadza?
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emlyn ngwiri
#12 Posted : Wednesday, November 09, 2011 6:31:56 PM
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@lovely2010

Investments 202 tells us that investment in government securities during periods of inflation devalue the meaning of fixed income. The money earned then will be of much less value that it is today. so i am not too sure you really want to go there to earn interest income at these times.
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Mainat
#13 Posted : Wednesday, November 09, 2011 6:34:16 PM
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Joined: 11/21/2006
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lovely2010 wrote:
Is it wise to buy treasury bills for 3 months, 6 months or 1 year?...I did the maths and I think one gains more when buying for three months but due to bank transfers you end up spending a lot. Also time wastage...If you buy for one year you waste less time and also you get bulk interest at once...Im I right?

In case nobody has mentioned, CBK allows you to automatically rollover your principal+interest
Sehemu ndio nyumba
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cnn
#14 Posted : Wednesday, November 09, 2011 6:52:55 PM
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Joined: 6/17/2009
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Liquidity gone,and the 364 day T-bill up to 16.617%,a fair return to the risk averse who have taken cover in the money markets.
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Cde Monomotapa
#15 Posted : Wednesday, November 09, 2011 6:56:48 PM
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Joined: 1/13/2011
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tony stark wrote:
Cde Monomotapa wrote:
Weuwe...another of Wazua celebrity couples ;-)

Comrade mwene mutapa .... hii ni nini/ hawa ni nani? or are you bloated on sadza?

si...lovely & ycsun smile btw Sadza is a culture shock to Kenyans and the Ugali we know and vice-verca to the Zimbo. Sadza too soft, Ugali too hard! Laughing out loudly Laughing out loudly ubuntu, ubuntu!
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tonicasert
#16 Posted : Thursday, November 10, 2011 10:17:33 PM
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Location: Abu Dhabi
Invest in 91-day as long as you expect interest rates to keep rising. Once you see a top, go for longer tenors - 182 or 364.
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lovely2010
#17 Posted : Thursday, November 17, 2011 6:27:21 PM
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Joined: 10/25/2010
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Location: nairobi
91 @ 16.202...I am so liking this...
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mwekez@ji
#18 Posted : Friday, November 18, 2011 9:11:20 AM
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Joined: 5/31/2011
Posts: 5,121
lovely2010 wrote:
91 @ 16.202...I am so liking this...


... and there was an undersubscription. In the next auction, the interest rate is going up, again. I am so liking this too ....
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