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Faulu Kenya now beats T-Bills for fixed deposits
Rank: Veteran Joined: 11/17/2012 Posts: 1,461 Location: Ngong Forest
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Watasema you were threatened by the security agencies.
CBK must be disbanded and reconstituted to reflect the wishes of some wazuans!
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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Can someone advise me how this upfront thing is done in other countries..is this version of upfront the colonial one..?
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Chaka wrote:Can someone advise me how this upfront thing is done in other countries..is this version of upfront the colonial one..? Refer to my analysis in post #90 above; there is nothing like upfront interest.  Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 4/30/2008 Posts: 6,029
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Impunity wrote:Chaka wrote:Can someone advise me how this upfront thing is done in other countries..is this version of upfront the colonial one..? Refer to my analysis in post #90 above; there is nothing like upfront interest. Hakuna kitu kama upfront not unless in one's imagination.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Pple are getting confused by the terminology "discount" It falsily! implies some favour by CBK. In layman's language DISCOUNT is simply the value addition in a time frame to a quantity. The time frame can be 91,182,364/5 days for T-bills. As I noted earlier only the tax may be upfront! if it goes to treasury pap" The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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jerry wrote:Pple are getting confused by the terminology "discount" It falsily! implies some favour by CBK. In layman's language DISCOUNT is simply the value addition in a time frame to a quantity. The time frame can be 91,182,364/5 days for T-bills. As I noted earlier only the tax may be upfront! if it goes to treasury pap" So its the treasury which benefits since they get the tax upfront! Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Impunity wrote:For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing? Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya?  Meanwhile, as the noise of Faulu Kenya's 12% continues, the weighted average T-Bill rates are 12.676 (1895), 12.674 (1894), 12.405 (1898), 12.504 (1897) beating Faulu hands down!  Source CBKPesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Impunity wrote:For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing?Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya? Meanwhile, as the noise of Faulu Kenya's 12% continues, the weighted average T-Bill rates are 12.676 (1895), 12.674 (1894), 12.405 (1898), 12.504 (1897) beating Faulu hands down! Source CBKPesa Nane plans to be shilingi when he grows up.
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Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada
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Pesa Nane wrote:Impunity wrote:For Kes. 1,000,000 deposited for 12 months Fualu gives interest of Kes.102,000 (12%) CBK's 364-day T-Bill gives Kes. 95,395 in interest. A Bank fixed deposit is now beating CBK T-bills down, I haven't seen this for a very loooong time. How safe is this Faulu thing?Why are guys still oversubscribing T-Bills at the rate of over 300% when we have "free" money at Faulu Kenya? Meanwhile, as the noise of Faulu Kenya's 12% continues, the weighted average T-Bill rates are 12.676 (1895), 12.674 (1894), 12.405 (1898), 12.504 (1897) beating Faulu hands down! Source CBK Please explain how the current Tbills beat Faulu hands down, please illustrate with figures as I did above. Portfolio: Sold
You know you've made it when you get a parking space for your yatcht.
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Rank: Elder Joined: 5/25/2012 Posts: 4,105 Location: 08c
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Impunity wrote:Please explain how the current Tbills beat Faulu hands down, please illustrate with figures as I did above. T-Bill 1895 the weighted price of Ksh.100 is 88.777 meaning a discount of Ksh. 11.223 per every 100 bob. Mr. Faulu = 1,000,000 Mr Tbill (1895) = 1,000,000 Investing options: Mr. Faulu: 1,000,000 at 12% in Faulu Mr. T-bill: 887,770 in T-bill and 112,230 at 12% in Faulu (Remember 112,230 is the upfront discount) After 1 Year: Mr. Faulu 1,000,000 + 12% interest = 1,120,000 Mr. Tbill 1,000,000 yield + (112,230 + 12% interest) = 1,125,697.60 Difference = 5,697.60 Pesa Nane plans to be shilingi when he grows up.
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Faulu Kenya now beats T-Bills for fixed deposits
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