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Treasury Bills Investing-Procedure?
Rank: Elder Joined: 9/25/2009 Posts: 4,534 Location: Windhoek/Nairobbery
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T-Bills now offering inflation beating returns.
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Rank: Member Joined: 10/25/2010 Posts: 519 Location: nairobi
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Bills are interesting, got them when rates were 13.7, got them again now @ 20.696...This is how I'll spend my interest. Part will go to coop, part chama, part renew my passport, part Im going shopping tommorrow...exciting! I do 090 days...I dont do rollover...For those who feel tbills are pain...think again...I'll exit when stock market comes back to life...
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Rank: Member Joined: 6/29/2011 Posts: 233
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Could we use figures to illustrate the return earned on Tbills? For example at the current rate of 20% for 91 day bill, if i choose to "invest" Ksh 200,000....my calculated interest/return is Ksh 8,073 (After withholding tax), right? And the amount i have to pay on the value date is Ksh 191,926. Am i working it out correctly? Excelsior
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Rank: Member Joined: 10/25/2010 Posts: 519 Location: nairobi
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incognito wrote:Could we use figures to illustrate the return earned on Tbills? For example at the current rate of 20% for 91 day bill, if i choose to "invest" Ksh 200,000....my calculated interest/return is Ksh 8,073 (After withholding tax), right? And the amount i have to pay on the value date is Ksh 191,926. Am i working it out correctly? The simplest way to know how much you will earn visit: http://www.centralbank.go.ke/ click on securities, treasury bills then treasury bills pricing calculator...it is very accurate.
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Rank: Member Joined: 6/21/2010 Posts: 514 Location: Nairobi
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Everything held constant for the year at the current rate of 20.696%, if one rolls over their investment the effective rate will be around 22.35% now where else can one get a safe return like this. 'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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erifloss wrote:Everything held constant for the year at the current rate of 20.696%, if one rolls over their investment the effective rate will be around 22.35% now where else can one get a safe return like this. 20% is roughly 5% every 3 months, even if we get generous and stretch it to 9% every 3 months, thats only 3% per month!! Nimekataa, there are stocks that rally 10% in a couple of days, I just dont get it. But then again, Im not loking for a safe return.
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Rank: Veteran Joined: 7/22/2011 Posts: 1,325
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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I'm glad am making money from the bear economy. T-bills for now is better than keeping the money in the bank or buying paka at 1.50 spend sleepless night as the price slides below 1 bob!  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: User Joined: 8/29/2011 Posts: 1,045 Location: Mtaani
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Nabwire wrote:erifloss wrote:Everything held constant for the year at the current rate of 20.696%, if one rolls over their investment the effective rate will be around 22.35% now where else can one get a safe return like this. 20% is roughly 5% every 3 months, even if we get generous and stretch it to 9% every 3 months, thats only 3% per month!! Nimekataa, there are stocks that rally 10% in a couple of days, I just dont get it. But then again, Im not loking for a safe return. now what the heck are you sayin????
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Repetition posting. See below. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Borrowing from SACCO at between 12-14% then putting everything in T-bills at 21.96 pa (364-Day paper) now seems to make economic sense! Say borrow 1,000,000 at 14%pa and pay total interest of 77,400 and invest in 364-paper at 21.96% and get 152,000. Net profit = 152000-77400 = 77,600 (Better that sitting and thinking nothing) Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 11/7/2007 Posts: 2,182
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impunity thats an idea right there LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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kyt wrote:impunity thats an idea right there But you need to be in job or bizna paying you some 89,700 shillings per month coz this is the monthly contribution the bank/sacco will expect from you every month end.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Veteran Joined: 11/2/2006 Posts: 1,206 Location: Nairobi
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So you take a loan of 1M to make about 70K that whole year? You had better even buy cows or plant something.1M for 70K..... Formally employed people often live their employers' dream & forget about their own.
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Impunity-you are right. I believe this is how the money market funds are doing it... Sehemu ndio nyumba
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