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Treasury Bills Investing-Procedure?
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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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: 26,328 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: 26,328 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: 26,328 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: 26,328 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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