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Treasury Bills Investing-Procedure?
hisah
#31 Posted : Friday, January 06, 2012 1:25:25 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Cde Monomotapa wrote:
As inflation eases so will the t.bill rates as dividend yields compound by a further 20%

True. But with such a huge deficit and a funds hungry gok, I dont expect the rates of the tbills & 2yr bond to top out soon even with inflation slowly trimming back. Also note that should the econ continue bleeding, most firms wont be able to maintain the same dividend policy due to trimmed revenues.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Cde Monomotapa
#32 Posted : Friday, January 06, 2012 1:29:19 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
hisah wrote:
Cde Monomotapa wrote:
As inflation eases so will the t.bill rates as dividend yields compound by a further 20%

True. But with such a huge deficit and a funds hungry gok, I dont expect the rates of the tbills & 2yr bond to top out soon even with inflation slowly trimming back. Also note that should the econ continue bleeding, most firms wont be able to maintain the same dividend policy due to trimmed revenues.

Sawa. We talk again in June 2012 but just remember it is CBK itself controling the KES.
Cde Monomotapa
#33 Posted : Friday, January 06, 2012 1:38:36 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
We all know that it is inflation that has slowed down the economy & not that we don't have things to do here - we do. 2ndly and historically, GoK Bills & Bond rates have been independent of CBR & Bank lending rates. P.S: With the crack of long rains in April, many will be left behind with their Bills & Bonds. Let's see.
hisah
#34 Posted : Friday, January 06, 2012 1:41:56 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Cde Monomotapa wrote:
We all know that it is inflation that has slowed down the economy & not that we don't have things to do here - we do. 2ndly and historically, GoK Bills & Bond rates have been independent of CBR & Bank lending rates. P.S: With the crack of long rains in April, many will be left behind with their Bills & Bonds. Let's see.

I've said this before - CBK should hire rainmakers since rain in this econ is a major tool...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Cde Monomotapa
#35 Posted : Friday, January 06, 2012 1:56:03 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Untill the day we'll be highly industrialized in the EAC, rain will remain the most broad-based productivity factor in our economies.
youcan'tstopusnow
#36 Posted : Friday, January 06, 2012 2:02:01 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
hisah wrote:
Nabwire wrote:
So if its at 20% PA, is this a fixed rate or is there a possibillity that when you rollover, the rate may have been adjusted downwards to say 13%??? Im pretty sure these rates fluctuate meaning you will be a net loser when the rates eventually adjust downwards. It just doesnt make sense to me to tie your money in a Tbill and lament when the stock market turns around and you have to buy stocks at a higher price coz you were all tied up. But to each her own.

This is why you have 91, 182 & 364 day tbill flavors. Since I dont trust the current treasury guys, I've been in 91 day bill until further notice...

What do you mean by this? That you would not be shocked if the rates suddenly began going down?
GOD BLESS YOUR LIFE
Cde Monomotapa
#37 Posted : Friday, January 06, 2012 2:10:04 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
youcan'tstopusnow wrote:
hisah wrote:
Nabwire wrote:
So if its at 20% PA, is this a fixed rate or is there a possibillity that when you rollover, the rate may have been adjusted downwards to say 13%??? Im pretty sure these rates fluctuate meaning you will be a net loser when the rates eventually adjust downwards. It just doesnt make sense to me to tie your money in a Tbill and lament when the stock market turns around and you have to buy stocks at a higher price coz you were all tied up. But to each her own.

This is why you have 91, 182 & 364 day tbill flavors. Since I dont trust the current treasury guys, I've been in 91 day bill until further notice...

What do you mean by this? That you would not be shocked if the rates suddenly began going down?

youcan'tstopusnow
#38 Posted : Friday, January 06, 2012 2:10:08 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
“I expect that the yields on the Treasury Bills will rise to 35 per cent because the State will still borrow at the rates investors will demand,” said Mr Franklin who is also the managing director of the investment advisory firm.
GOD BLESS YOUR LIFE
hisah
#39 Posted : Friday, January 06, 2012 2:24:41 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Cde Monomotapa wrote:
youcan'tstopusnow wrote:
hisah wrote:
Nabwire wrote:
So if its at 20% PA, is this a fixed rate or is there a possibillity that when you rollover, the rate may have been adjusted downwards to say 13%??? Im pretty sure these rates fluctuate meaning you will be a net loser when the rates eventually adjust downwards. It just doesnt make sense to me to tie your money in a Tbill and lament when the stock market turns around and you have to buy stocks at a higher price coz you were all tied up. But to each her own.

This is why you have 91, 182 & 364 day tbill flavors. Since I dont trust the current treasury guys, I've been in 91 day bill until further notice...

What do you mean by this? That you would not be shocked if the rates suddenly began going down?


The way they handled the situation as things came to a disorderly finale with forex & inflation - price stability. Treasury blame games were a red flag to me... Therefore I cant lend gok me useless siringi for more than 91 days on tbills.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
hisah
#40 Posted : Friday, January 06, 2012 2:28:14 PM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
Cde Monomotapa wrote:
hisah wrote:
Cde Monomotapa wrote:
As inflation eases so will the t.bill rates as dividend yields compound by a further 20%

True. But with such a huge deficit and a funds hungry gok, I dont expect the rates of the tbills & 2yr bond to top out soon even with inflation slowly trimming back. Also note that should the econ continue bleeding, most firms wont be able to maintain the same dividend policy due to trimmed revenues.

Sawa. We talk again in June 2012 but just remember it is CBK itself controling the KES.

Sawa. This is why I'm skeptical of KES. No CB has ever successfully beaten the market over time. SNB & BOJ are the best examples so far.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Cde Monomotapa
#41 Posted : Friday, January 06, 2012 2:31:14 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
hisah wrote:
Cde Monomotapa wrote:
youcan'tstopusnow wrote:
hisah wrote:
Nabwire wrote:
So if its at 20% PA, is this a fixed rate or is there a possibillity that when you rollover, the rate may have been adjusted downwards to say 13%??? Im pretty sure these rates fluctuate meaning you will be a net loser when the rates eventually adjust downwards. It just doesnt make sense to me to tie your money in a Tbill and lament when the stock market turns around and you have to buy stocks at a higher price coz you were all tied up. But to each her own.

This is why you have 91, 182 & 364 day tbill flavors. Since I dont trust the current treasury guys, I've been in 91 day bill until further notice...

What do you mean by this? That you would not be shocked if the rates suddenly began going down?


The way they handled the situation as things came to a disorderly finale with forex & inflation - price stability. Treasury blame games were a red flag to me... Therefore I cant lend gok me useless siringi for more than 91 days on tbills.

Here U admit.
Cde Monomotapa
#42 Posted : Friday, January 06, 2012 2:35:09 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
hisah wrote:
Cde Monomotapa wrote:
hisah wrote:
Cde Monomotapa wrote:
As inflation eases so will the t.bill rates as dividend yields compound by a further 20%

True. But with such a huge deficit and a funds hungry gok, I dont expect the rates of the tbills & 2yr bond to top out soon even with inflation slowly trimming back. Also note that should the econ continue bleeding, most firms wont be able to maintain the same dividend policy due to trimmed revenues.

Sawa. We talk again in June 2012 but just remember it is CBK itself controling the KES.

Sawa. This is why I'm skeptical of KES. No CB has ever successfully beaten the market over time. SNB & BOJ are the best examples so far.

Here U deny. Laughing out loudly Laughing out loudly #my day with a trader.
Aguytrying
#43 Posted : Friday, January 06, 2012 7:52:22 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
First. I love wazua. And yes i agree with mlennyma, that when wazua goes down like two days ago we need another place to discuss. And i agree with cde, coz i'd rather wait in the downturn of the stockmarket. And i also agree with hisah, though i'm not in t-bills, coz he makes a good point. And yes i am compromised...
The investor's chief problem - and even his worst enemy - is likely to be himself
QW25081985
#44 Posted : Friday, January 06, 2012 8:28:21 PM
Rank: User

Joined: 8/29/2011
Posts: 1,045
Location: Mtaani
Aguytrying wrote:
First. I love wazua. And yes i agree with mlennyma, that when wazua goes down like two days ago we need another place to discuss. And i agree with cde, coz i'd rather wait in the downturn of the stockmarket. And i also agree with hisah, though i'm not in t-bills, coz he makes a good point. And yes i am compromised...


Laughing out loudly
Laughing out loudly
Laughing out loudly
Laughing out loudly
Cde Monomotapa
#45 Posted : Friday, January 06, 2012 8:36:24 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
QW25081985 wrote:
Aguytrying wrote:
First. I love wazua. And yes i agree with mlennyma, that when wazua goes down like two days ago we need another place to discuss. And i agree with cde, coz i'd rather wait in the downturn of the stockmarket. And i also agree with hisah, though i'm not in t-bills, coz he makes a good point. And yes i am compromised...


Laughing out loudly
Laughing out loudly
Laughing out loudly
Laughing out loudly

Money has been poured smile
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