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Treasury Bills Investing-Procedure?
Rank: Chief Joined: 8/4/2010 Posts: 8,977
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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!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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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.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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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.
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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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!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Untill the day we'll be highly industrialized in the EAC, rain will remain the most broad-based productivity factor in our economies.
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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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
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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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?
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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“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
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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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!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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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!
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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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.
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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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.  #my day with a trader.
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Rank: Elder Joined: 7/11/2010 Posts: 5,040
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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
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Rank: User Joined: 8/29/2011 Posts: 1,045 Location: Mtaani
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Rank: Chief Joined: 1/13/2011 Posts: 5,964
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Money has been poured 
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