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oshario		#1 Posted : Tuesday, February 14, 2012 2:59:09 PM
Rank: Hello Joined: 2/9/2012 Posts: 3 Location: Nairobi		What's the current situation with bills and bonds i.e. are they a good investment tool for now?
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Impunity		#2 Posted : Saturday, February 25, 2012 1:53:11 PM
Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada		oshario wrote: What's the current situation with bills and bonds i.e. are they a good investment tool for now? Still very good returns,especially the T-bills at 19% returns and you get to enjoy the interest now! Portfolio: Sold You know you've made it when you get a parking space for your yatcht.
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chiaroscuro		#3 Posted : Monday, February 27, 2012 10:30:19 AM
Rank: Veteran Joined: 2/2/2012 Posts: 1,134 Location: Nairobi		oshario wrote: What's the current situation with bills and bonds i.e. are they a good investment tool for now? Always the better place to keep that 100k+ for 3 months+ instead of the falsely acclaimed fixed deposit in the banks. BTW: Did you know that the banks will take your money from the fixed deposit and take it to T-Bills and then pay you half the interest rate? Why not go direct to CBK?
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Chaka		#4 Posted : Tuesday, February 28, 2012 6:08:44 PM
Rank: Elder Joined: 2/16/2007 Posts: 2,114		Impunity wrote: Still very good returns,especially the T-bills at 19% returns and you get to enjoy the interest now! I thought the interest is paid at maturity i.e after 91 days for the 91 day T-Bill?
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kyt		#5 Posted : Tuesday, February 28, 2012 6:22:42 PM
Rank: Elder Joined: 11/7/2007 Posts: 2,182		you get the interest before hand, unakula interest kwanza halafu unangonja kulipwa pesa yako baadaye LOVE WHAT YOU DO, DO WHAT YOU LOVE.
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mukiha		#6 Posted : Wednesday, February 29, 2012 8:38:40 AM
Rank: Elder Joined: 6/27/2008 Posts: 4,114		kyt wrote: you get the interest before hand, unakula interest kwanza halafu unangonja kulipwa pesa yako baadaye I also used to hold this misconception. But now I know better... Suppose the interest rate is 19%; so you pay Sh96,119.20 [inc w-h-tax] and wait 91 days when you get sh100,000 back. Does that really mean that you get the interest upfront? Of course not! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Impunity		#7 Posted : Monday, March 05, 2012 4:53:59 PM
Rank: Elder Joined: 3/2/2009 Posts: 26,331 Location: Masada		mukiha wrote: [quote=kyt]you get the interest before hand, unakula interest kwanza halafu unangonja kulipwa pesa yako baadaye I also used to hold this misconception. But now I know better... Suppose the interest rate is 19%; so you pay Sh96,119.20 [inc w-h-tax] and wait 91 days when you get sh100,000 back. Does that really mean that you get the interest upfront? Of course not![/quote] Ditto. Pease expound coz the same school of thought can be applied to the normal bank deposits. Portfolio: Sold You know you've made it when you get a parking space for your yatcht.
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Drunkard		#8 Posted : Thursday, March 08, 2012 11:34:06 PM
Rank: User Joined: 5/3/2011 Posts: 559		@kyt There is two part to bond/price/interest, the first part would be the zero coupon and that works like the way mukiha explained. There is a coupon paying bonds, so I guess that is what your were trying to explain, the fact of the matter with coupon paying bonds is that as much as you're getting a constant coupon payment the value of your total bond investments is inversely proportional to market rates meaning that high market rates are not good!
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nostoppingthis		#9 Posted : Thursday, April 12, 2012 4:09:23 PM
Rank: Chief Joined: 8/24/2009 Posts: 5,909 Location: Nairobi		Asanteni, any more insights?
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murchr		#10 Posted : Monday, November 11, 2013 11:34:35 PM
Rank: Elder Joined: 2/26/2012 Posts: 15,980		What are the current rates? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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