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options if you need to hold 30 million
Djinn
#21 Posted : Wednesday, May 23, 2012 9:09:40 AM
Rank: Elder


Joined: 11/13/2008
Posts: 1,565
quicksand wrote:
banker01 wrote:

Anyone with ideas on how to make the most money from an investment of 30 million in bills or bonds without risking any of it as i have to use it for an agreed payment in a year so might as well squeeze whatever i can from it?


Running up to an election in 9 months or so..? you know what happens ....investments starting running south due to all the market uncertainty ...this can blow up in your face very spectacularly ...dont play with your client's funds, slippery path.



Applause @quikcsand - you have seen the forest for the trees....@banker01 - is this for personal gain or for your establishment? In which case you should not be asking here. or are you using Wazua as a think tank so you can present "grand" ideas at work.

mwekez@ji
#22 Posted : Thursday, May 24, 2012 8:54:48 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
maka wrote:
I agree with anyone who said you buy the 5 year bond with the interest rates dropping you can make upto 100 basis point gain on the sale of the bond on the secondary market but 30 million in itself is somehow of an odd lot but most definetly you will get a buyer the problem is what price to bid for the bond coz if am not wrong the outcome will be market determined...my advice dont even think of doing stocks.


Coupon rate, which is also the weighted average yield, has turned out to be 11.855%. How much would be the gains in the above scenario?
mwekez@ji
#23 Posted : Thursday, May 24, 2012 8:57:51 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
@banker01 could have added to this:

Small investors’ bond purchases rise to Sh100bn
http://www.businessdailyafrica....4/-/4njj2yz/-/index.html
banker01
#24 Posted : Thursday, May 24, 2012 9:54:42 AM
Rank: New-farer


Joined: 5/1/2012
Posts: 25
Rollout wrote:
where did you get 30million if you don't know where to keep it? Return to whoever gave you and tell them to give it to you in one year!



@ikenya, its my money for a hse, hence im asking so as to think of better options to put it in the mean time it gets constructed so i dont loose the value to inflation etc
maka
#25 Posted : Thursday, May 24, 2012 10:14:09 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
mwekez@ji wrote:
maka wrote:
I agree with anyone who said you buy the 5 year bond with the interest rates dropping you can make upto 100 basis point gain on the sale of the bond on the secondary market but 30 million in itself is somehow of an odd lot but most definetly you will get a buyer the problem is what price to bid for the bond coz if am not wrong the outcome will be market determined...my advice dont even think of doing stocks.


Coupon rate, which is also the weighted average yield, has turned out to be 11.855%. How much would be the gains in the above scenario?

@mwekezaji its value dated 28th thats Monday,il come up with a bond calculator for the issue and then we see if you sell it at 50 or 100 basis point lower how much you will get as gains...
possunt quia posse videntur
mwekez@ji
#26 Posted : Thursday, May 24, 2012 10:42:10 AM
Rank: Chief


Joined: 5/31/2011
Posts: 5,121
maka wrote:
mwekez@ji wrote:
maka wrote:
I agree with anyone who said you buy the 5 year bond with the interest rates dropping you can make upto 100 basis point gain on the sale of the bond on the secondary market but 30 million in itself is somehow of an odd lot but most definetly you will get a buyer the problem is what price to bid for the bond coz if am not wrong the outcome will be market determined...my advice dont even think of doing stocks.


Coupon rate, which is also the weighted average yield, has turned out to be 11.855%. How much would be the gains in the above scenario?

@mwekezaji its value dated 28th thats Monday,il come up with a bond calculator for the issue and then we see if you sell it at 50 or 100 basis point lower how much you will get as gains...


... that calc is welcomed ... Muchus gracius
Scooby
#27 Posted : Sunday, May 27, 2012 8:55:42 PM
Rank: Member


Joined: 9/2/2006
Posts: 121
banker01 wrote:

Anyone with ideas on how to make the most money from an investment of 30 million in bills or bonds without risking any of it as i have to use it for an agreed payment in a year so might as well squeeze whatever i can from it?



Hi banker01,

Firstly, you might want to place some funds in a call and/or fixed deposit account to cater for any unforeseen or emergency expenses associated with the purchase which might crop up before the end of the time frame of a year.

There are some banks where you can get a higher than average interest rate on your deposits. What you need to do is to contact their Treasury department to negotiate the rate and the minimum threshold (i.e. funds) required.

Thereafter, you can allocate another portion of your funds, depending on your projected needs, in either a three month or six month treasury bill. You can be sure of getting the principal...its now a matter of how much return you will get from the treasury bonds as the rates keep trending downwards.

The funds that you place in the tills can help you in instances like - you need to place a deposit to a lawyer.

Lastly, should you desire to place some funds in treasury and/or corporate bonds as well, consider placing your funds in any of the infrastructure development bonds, the 30 year saving development bond and the KenGen corporate bond.

The three bonds are frequently traded in the market, thereby increasing your chances of getting your funds whenever you need.

Hope this helps.

Regards
action!
#28 Posted : Friday, June 08, 2012 3:55:31 PM
Rank: Member


Joined: 9/17/2009
Posts: 47
You can also look at putting some of it in CfcStanbic bank with their 11% savings account. That way you will still have access to some of it when you need it and still earn interest.
jano
#29 Posted : Friday, June 15, 2012 11:46:29 AM
Rank: New-farer


Joined: 7/12/2011
Posts: 57
Location: nairobi
and if you have not yet found a place to invest..i can propose you put it in private wealth management..if interested give ua email i give u more details.
StatMeister
#30 Posted : Friday, June 15, 2012 1:09:07 PM
Rank: Veteran


Joined: 5/23/2010
Posts: 868
Location: La Islas Galápagos
short KQ
A bad day fishing is better than a good day at work
premio
#31 Posted : Friday, June 15, 2012 3:59:43 PM
Rank: Member


Joined: 5/31/2009
Posts: 226
if i were u n want real returns take aside 10m and import 4 2005 Toyota harriers and 5 toyota ists and get a free fob unit either ist or new shape vitz. Since you will buy bulk the harriers will cost 1.7m each total landed cost and the ists each 600k. Buy coloured ones only beige, black, silver and park them at any reputable showroom on ngong road they should sell like hotcakes within 3-5months and the harriers combined should net 2m plus the ist combined750k. The free fob unit should get u at least 450k thats a cool 3.2m in at most 5 months from just a third of the cash. Cars are really selling you can select a reputable dealer like sbtjapan or delights and go there in person kobe city has numerous auctions that can fetch u good deals. U would need to pay me consultation fees if u need me to accompany u hahaha.
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