sparkly wrote:@sasha in the secondary treasury bond market whats the min you can invest, Whats the commission payable, do i buy through broker, is electronic trading available yet? a Clean price, how is the interest factored into the bond price? Does the price rise towards the interest date?
Min investment is only KES.50K, you buy through a broker if its in the secondary market. Operates just like shares. You need to have a CDS A/c which you open with/at CBK and you use them for new issues in the primary market.
Interest doesnt have to be factored in the clean price, only factored in the dirty price and as such you pay more for dirty than clean coz of the interest receivable component. Just like you'd buy a cum div stock at higher price than an ex div one.
Only problem is that the bond market is fairly illiquid particularly if you bond is just worth a few thousands. Banks are the major players here.
@SufficientlyP