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Treasury Bills and Bonds
maka
#1561 Posted : Friday, November 05, 2021 9:40:31 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
maka wrote:
Queen wrote:
maka wrote:
Ericsson wrote:
Queen wrote:
MatataMingi wrote:
CBK announce the offer of 2 Bonds for the month of November.

- Reopened FXD1/2019/20 Coupon rate 12.873%

- New FXD1/2021/5 Coupon rate to be market determined. Probably between 11 & 12 %


Meanwhile, the government is planning to unleash in November the mother of all infrastructure bonds worth Kshs.150B.


You mean the one of Kenya Roads Board


Looks like it will be a shortish paper... Rather medium term instead of a long ended one.


Less than 10 years Tenor?



Heard 6....


The secondary maket is all over the place... Stanchart are the only ones enjoying, hitting their clients with crazy rates for IFB 23.... 100 bps profit on their end. Crazy. I wonder what the guys buying will do if they ever want to sell........
possunt quia posse videntur
maka
#1562 Posted : Friday, November 05, 2021 10:06:03 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
Sufficiently Philanga....thropic wrote:
kizee1 wrote:
maka wrote:
snipermnoma wrote:
Anyone know the process of buying bonds on secondary market?


If you go through the daily/weekly bond price list you will notice that most trades are in lots of 100m,anything below this figure is normally traded as an odd lot,buying a bond for let's say 50k or 100k is almost close to impossible as most people who buy such small lots at the primary tend to hold to maturity...I think it's high time someone started a trading desk for small lots...upto maybe 10m.



well that someone could be me and you ;-)


Commissions are too low for bonds. Not worth the effort. And the paperwork is more than trading equities.


It came to work out... If you go through the price list retail trade has picked up. Took a few years but things are working out.
possunt quia posse videntur
Queen
#1563 Posted : Friday, November 05, 2021 11:03:21 AM
Rank: Member


Joined: 11/21/2018
Posts: 495
Location: Britain
maka wrote:
Queen wrote:
maka wrote:
Ericsson wrote:
Queen wrote:
MatataMingi wrote:
CBK announce the offer of 2 Bonds for the month of November.

- Reopened FXD1/2019/20 Coupon rate 12.873%

- New FXD1/2021/5 Coupon rate to be market determined. Probably between 11 & 12 %


Meanwhile, the government is planning to unleash in November the mother of all infrastructure bonds worth Kshs.150B.


You mean the one of Kenya Roads Board


Looks like it will be a shortish paper... Rather medium term instead of a long ended one.


Less than 10 years Tenor?



Heard 6....


That would imply that the coupon rate shall be correspondingly low.
maka
#1564 Posted : Friday, November 05, 2021 12:01:10 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
Queen wrote:
maka wrote:
Queen wrote:
maka wrote:
Ericsson wrote:
Queen wrote:
MatataMingi wrote:
CBK announce the offer of 2 Bonds for the month of November.

- Reopened FXD1/2019/20 Coupon rate 12.873%

- New FXD1/2021/5 Coupon rate to be market determined. Probably between 11 & 12 %


Meanwhile, the government is planning to unleash in November the mother of all infrastructure bonds worth Kshs.150B.


You mean the one of Kenya Roads Board


Looks like it will be a shortish paper... Rather medium term instead of a long ended one.


Less than 10 years Tenor?



Heard 6....


That would imply that the coupon rate shall be correspondingly low.



IFB 1/2020/009 is the closest to this... Coupon is at 10.85% ... Bump it up to 11.00 - 11.20%

IFB 1/2017/12 has 2661 days to maturity... 7.2 years... Coupon 12.50% but trading at 108.8 (Implied YTM of 10.33%). Coupon Feb 21st 2022. Interesting 100 days apart but the latter is much better in pricing....

possunt quia posse videntur
maka
#1565 Posted : Wednesday, November 10, 2021 7:29:21 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
maka wrote:
Queen wrote:
maka wrote:
Queen wrote:
maka wrote:
Ericsson wrote:
Queen wrote:
MatataMingi wrote:
CBK announce the offer of 2 Bonds for the month of November.

- Reopened FXD1/2019/20 Coupon rate 12.873%

- New FXD1/2021/5 Coupon rate to be market determined. Probably between 11 & 12 %


Meanwhile, the government is planning to unleash in November the mother of all infrastructure bonds worth Kshs.150B.


You mean the one of Kenya Roads Board


Looks like it will be a shortish paper... Rather medium term instead of a long ended one.


Less than 10 years Tenor?



Heard 6....


That would imply that the coupon rate shall be correspondingly low.



IFB 1/2020/009 is the closest to this... Coupon is at 10.85% ... Bump it up to 11.00 - 11.20%

IFB 1/2017/12 has 2661 days to maturity... 7.2 years... Coupon 12.50% but trading at 108.8 (Implied YTM of 10.33%). Coupon Feb 21st 2022. Interesting 100 days apart but the latter is much better in pricing....



For those who bank with Stanchart I am sure you have received an email from them that they can purchase for you Govt bonds.

Now from their app they are selling IFB 23 (IFB 1/2021/21) at levels of 11.78- 11.85%.

At such low YTMs what happens if you want to sell your paper after a few years ? Who will you sell it to? Or I am the one who doesn't understand how this works? Or the assumption is you will hold the paper to maturity?
possunt quia posse videntur
maka
#1566 Posted : Wednesday, November 10, 2021 3:13:56 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
MatataMingi wrote:
CBK announce the offer of 2 Bonds for the month of November.

- Reopened FXD1/2019/20 Coupon rate 12.873%

- New FXD1/2021/5 Coupon rate to be market determined. Probably between 11 & 12 %


Results are in.....

possunt quia posse videntur
MatataMingi
#1567 Posted : Wednesday, November 10, 2021 3:42:16 PM
Rank: Member


Joined: 11/17/2009
Posts: 370
Location: Where everyone knows you
Thanks @ maka,
It seems that the 5 year new bond was a lot more popular than the 20 year reopened bond.
A coupon of 11.277% is good for me.
I hope the upcoming IFB due this month is as per your posts, also a similar shorter term bond.
maka
#1568 Posted : Monday, November 15, 2021 9:39:22 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
MatataMingi wrote:
Thanks @ maka,
It seems that the 5 year new bond was a lot more popular than the 20 year reopened bond.
A coupon of 11.277% is good for me.
I hope the upcoming IFB due this month is as per your posts, also a similar shorter term bond.


Demand mostly from banks. I hear ABSA went in huuuuuge at 11.05%.
That IFB is becoming dodgy let us wait and see...
possunt quia posse videntur
MatataMingi
#1569 Posted : Wednesday, November 17, 2021 3:12:02 PM
Rank: Member


Joined: 11/17/2009
Posts: 370
Location: Where everyone knows you
Thanks @maka.
Any idea how the IFB is getting dodgy?
As you say, let us wait and see.
maka
#1570 Posted : Wednesday, November 17, 2021 6:05:46 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
MatataMingi wrote:
Thanks @maka.
Any idea how the IFB is getting dodgy?
As you say, let us wait and see.


No info at all... Silence unless they want to surprise us. Btw we only have one bond auction left for the year...🙂
possunt quia posse videntur
Tokyo
#1571 Posted : Friday, November 19, 2021 5:04:55 PM
Rank: Veteran


Joined: 10/9/2006
Posts: 1,501
Any idea when we should expect IFB?
work to prosper
maka
#1572 Posted : Monday, November 22, 2021 11:46:21 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
Tokyo wrote:
Any idea when we should expect IFB?


Wametucheza... This is how we end the year.

possunt quia posse videntur
Queen
#1573 Posted : Monday, November 22, 2021 1:27:45 PM
Rank: Member


Joined: 11/21/2018
Posts: 495
Location: Britain
maka wrote:
Tokyo wrote:
Any idea when we should expect IFB?


Wametucheza... This is how we end the year.



This is very serious. Maybe the IFB shall be floated early next year.
maka
#1574 Posted : Monday, November 22, 2021 1:38:02 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
Queen wrote:
maka wrote:
Tokyo wrote:
Any idea when we should expect IFB?


Wametucheza... This is how we end the year.



This is very serious. Maybe the IFB shall be floated early next year.


Btw the YTM for IFB 23 (IFB 1/2021/21) is still good at the secondary market if you can, buy it.... Next coupon payment 14th March 2022.
possunt quia posse videntur
Queen
#1575 Posted : Monday, November 22, 2021 1:42:31 PM
Rank: Member


Joined: 11/21/2018
Posts: 495
Location: Britain
maka wrote:
Queen wrote:
maka wrote:
Tokyo wrote:
Any idea when we should expect IFB?


Wametucheza... This is how we end the year.



This is very serious. Maybe the IFB shall be floated early next year.


Btw the YTM for IFB 23 (IFB 1/2021/21) is still good at the secondary market if you can, buy it.... Next coupon payment 14th March 2022.


How much is it going for now? Though I jumped in big time during the primary offer.
maka
#1576 Posted : Monday, November 22, 2021 2:08:38 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,519
Location: Nairobi
Queen wrote:
maka wrote:
Queen wrote:
maka wrote:
Tokyo wrote:
Any idea when we should expect IFB?


Wametucheza... This is how we end the year.



This is very serious. Maybe the IFB shall be floated early next year.


Btw the YTM for IFB 23 (IFB 1/2021/21) is still good at the secondary market if you can, buy it.... Next coupon payment 14th March 2022.


How much is it going for now? Though I jumped in big time during the primary offer.


Implied is at around 12.52% (103.69/100)
possunt quia posse videntur
Queen
#1577 Posted : Monday, November 22, 2021 2:11:37 PM
Rank: Member


Joined: 11/21/2018
Posts: 495
Location: Britain
maka wrote:
Queen wrote:
maka wrote:
Queen wrote:
maka wrote:
Tokyo wrote:
Any idea when we should expect IFB?


Wametucheza... This is how we end the year.



This is very serious. Maybe the IFB shall be floated early next year.


Btw the YTM for IFB 23 (IFB 1/2021/21) is still good at the secondary market if you can, buy it.... Next coupon payment 14th March 2022.


How much is it going for now? Though I jumped in big time during the primary offer.


Implied is at around 12.52% (103.69/100)


Great!
kmucheke
#1578 Posted : Monday, November 29, 2021 9:44:14 AM
Rank: Member


Joined: 3/16/2019
Posts: 309
Laikipia County IFB

The county governments also want a piece of the action.

MatataMingi
#1579 Posted : Tuesday, November 30, 2021 2:33:37 PM
Rank: Member


Joined: 11/17/2009
Posts: 370
Location: Where everyone knows you
As this County IFB is backed by the Treasury, it may be attractive, depending on tenure etc.
MatataMingi
#1580 Posted : Tuesday, December 07, 2021 3:27:23 PM
Rank: Member


Joined: 11/17/2009
Posts: 370
Location: Where everyone knows you
@ maka,
I have bid on the FXD4/2019/010, with 8 years to maturity.
I have a big T-Bill maturing this month.
Waiting to see if the IFB will be the next T-Bond.
Hopefully the tenure is not too long.
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