Wazua
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Law Capping interest rates
Rank: Elder Joined: 6/23/2009 Posts: 14,249 Location: nairobi
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obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] Government stiff hand now visible with the last few failed auctions.. The NSE rally is nigh http://www.businessdaily...798768-c6waci/index.html
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Rank: Member Joined: 10/26/2015 Posts: 151
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Rank: Veteran Joined: 4/4/2016 Posts: 2,018 Location: Kitale
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[quote=Last year dps for these three banks was as follows: 1.Equity-2.00 2.Coop-0.80 3.Kcb-2.00 But due to the interest cap,im not sure if the dps will be the same. Can someone plis give a projection of the likely scenerio.Will dps be the same,decreased,increased or none? Towards the goal of financial freedom
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Rank: New-farer Joined: 5/19/2014 Posts: 68 Location: Migori
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Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. Learning to sit on my hands
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Rank: Elder Joined: 6/23/2009 Posts: 14,249 Location: nairobi
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ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. ,Behold, a sower went forth to sow;....
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Rank: Veteran Joined: 4/4/2016 Posts: 2,018 Location: Kitale
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muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. thanks guys for your input.lets hope for the dps to remain the same alafu maybe next year a slight drop. Towards the goal of financial freedom
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Rank: Elder Joined: 7/21/2010 Posts: 6,194 Location: nairobi
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This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 6/23/2009 Posts: 14,249 Location: nairobi
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muandiwambeu wrote:obiero wrote:ombaalbt wrote:Ebenyo wrote:[quote=Last year dps for these three banks was as follows:
1.Equity-2.00
2.Coop-0.80
3.Kcb-2.00
But due to the interest cap,im not sure if the dps will
be the same.
Can someone plis give a projection of
the likely scenerio.Will dps be the same,decreased,increased
or none?
The rate caps largely affected third quarter results. My prediction would be the DPS will remain the same. The real test will be 2017 results whose dividends will be paid in 2018. DPS must be held constant Dividends were hiked with increasing revenues/ profitability(constant dividend payout ratio). The vice versa is also true. Realisticwise, 50% down. Have the profits gone down 50% in 2016??
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Rank: Veteran Joined: 4/23/2014 Posts: 931
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mlennyma wrote:This law is on it's death bed,buy bank stocks,insiders know that and I think that's why the volumes have been swelling For the law makers to even consider changing it, they must first be debt free and with little use for any future debts, and this I don't see. The bankers made their worst mistake by allowing this law to become a law, despite the CBK governor informing them what was going on and the consequences that they faced. “You can get in way more trouble with a good idea than a bad idea, because you forget that the good idea has limits.” - Ben Graham
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Law Capping interest rates
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