Rank: Veteran Joined: 11/14/2006 Posts: 1,311
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kizee1 wrote:Liv wrote:kizee1 wrote:Impunity wrote:Liv wrote:kizee1 wrote:Liv wrote:Impunity wrote:maka wrote:Impunity wrote:@when do they close shop for accepting bids for this tap issuance?  Sasa hii first come first served ndio nini sasa? Can they wait till Monday next week? Ama matenderprenuers will take the offer by then?
This is just 10 billion.... One bank or a major foreign investor can just grab it all at once and the tap sale closes. So make haste if you are interested.
The funds are supposed to be transferred to CBK by either Monday 31 Oct or by 7th Nov. so you can apply now and once you get allocation you can plan to send the funds as required. You don't send the funds when you are applying. just 10billion? at the main auction they took 35bn, there's now 45bn of this paper circulating, it was trading at 13.05 before the tap, the tap has now pushed market up to 13.20! that's a 15point jump on a 15yr paper! the market is now in a state of flux awaiting this tap to close, the move was extremely ill advised! Haha.... In whose perspective was the tap sale extremely ill advised? Yours? Tap sale was good for investors who missed in the auction and also good for government in raising more funds. I don't see how it can be extremely ill advised.
Where did you get 13.05? The trades I saw before the tap sale was announced were spread between 12.8 and 13.3 ..... Are you using the average of circa 13.05 to rant here?
And by the way the main auction took 30b and not 35b.... Get your facts right.
Menwhile as he rants nonsense, us will be getting heavy cheques every 6 months for 15 years...while doing nothing really,...13.177% NET Profit for one and half decade.  @liv, yes my perspective as an active market participant...at no point did 12.8 trade on IFB11,if it did show me the NSE price list on that day, and if so it only adds credence to my argument, because today the same paper is trading at 13.05% ... Yes 30b was taken but total bids were 35b so why do a tap for 10b? in the week when KTDA is paying tea bonuses? heloooo!!! @impunity, you will be getting 13.177% how? is that perhaps the coupon on this paper? I thought the coupon was 12%? how do you quantify your profit on a bond? is it on capital gains or interest?
@Kizee1, why should this forum or the CBK consider your perspectives... you don't seem to even understand how the bond yield is computed.... you should be the one explaining to @Impunity how the yield came to 13.177% with a 12% coupon rate.
Can you please check the trades done last Monday in the business daily on tuesday this week is it you who wants the explanation or impunity? in any case, the yield is computed as the weighted average of the auction preceding the tap sale, the coupon is fixed(at announcement of the sale, in the prospectus) as opposed to instances when it is market determined..I don't read the business daily but get the NSE daily price list, 12.8 DID NOT TRADE @kizee1, On Tuesday there were 9 deals on this IFB.... One of them for Kes 150 million had a traded yield of 12.8%. Please have a look at the trades that happened last Tuesday. On Wednesday there was a deal for Kes 100 million and a traded yield of 12.9%. If you were unable to see these then I don't know where you are checking as these were published by NSE and later by the Business daily newspaper.
I will explain the 13.177% yield on this bond in a different post.....and why those who bought it are getting a return of 13.177% and not 12% coupon rate.
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