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Chase Bank 13% bond
Rank: Member Joined: 8/17/2007 Posts: 294
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Is this the best bond on offer currently?
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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link? The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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instinct wrote:Is this the best bond on offer currently? yes.... Now how do I post it? possunt quia posse videntur
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Rank: Member Joined: 6/14/2010 Posts: 520 Location: Nairobi
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maka wrote:instinct wrote:Is this the best bond on offer currently? yes.... Now how do I post it? Here you go.. 
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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Handsome payment. On the flip side why a high interest rate payout? Liquidity squeeze? This points to a robust money market trend shift. Equities to feel this capital flight squeeze. Are lending rates about to spike? Looks likely. $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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hisah wrote:Handsome payment. On the flip side why a high interest rate payout? Liquidity squeeze? This points to a robust money market trend shift. Equities to feel this capital flight squeeze. Are lending rates about to spike? Looks likely. Trading yields have gone up...most dealers who bought IFB 8 have been stuck with it...the primary that just closed the re opened 10 year (8 point something years left) guys went in as high as 13.15%...Guess thats where the market is at the moment... possunt quia posse videntur
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Rank: Hello Joined: 1/12/2015 Posts: 3
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I don't think this is a good buy in comparison to the Centum Bond. Here's why:
Chase Bank is offering 13.1% for a 7 (SEVEN) year bond, while Centum is offering 13% for a 5 (FIVE) year bond, in addition Centum is offering Equity Linked Notes! giving bond holders a chance to participate in their equity upside based on NAV.
The pricing is done off the Govt T bond rates
The current rate for a 7 year Bond (per NSE Yield Curve on 15th May 2015) is 12.16% which means Chase have priced at just 94 Basis Points above this rate
The current rate for a 5 year Bond (per NSE Yield Curve on 15th May 2015) is 11.7% which means Centum have priced at a cool 130 basis points above the govt yield
So you tell me which is the better buy
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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If I was to invest KES 100,000,what would be my net first quarterly payment?
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Rank: Elder Joined: 12/25/2014 Posts: 2,300 Location: kenya
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Chaka wrote:If I was to invest KES 100,000,what would be my net first quarterly payment? @chaka take that 100,000 go buy safaricom shares or one of the most stable doing well businesses on nse and forget about it completely and go get your equity after 4yrs .The returns I'm sure will give yyou more rreturns than bbond's . Bonds are reasonable for pension schemes that plan payment after a certain number employees retire and have to play safe with their money . TThat's just me hhow no see it ........
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Rank: Veteran Joined: 11/21/2006 Posts: 1,590
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Gross is 3.25% which Ksh3,250 less 15%% withholding tax I believe. Net is then 2,763. Chaka wrote:If I was to invest KES 100,000,what would be my net first quarterly payment? Sehemu ndio nyumba
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Rank: Member Joined: 8/17/2007 Posts: 294
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Kason wrote:I don't think this is a good buy in comparison to the Centum Bond. Here's why:
Chase Bank is offering 13.1% for a 7 (SEVEN) year bond, while Centum is offering 13% for a 5 (FIVE) year bond, in addition Centum is offering Equity Linked Notes! giving bond holders a chance to participate in their equity upside based on NAV.
The pricing is done off the Govt T bond rates
The current rate for a 7 year Bond (per NSE Yield Curve on 15th May 2015) is 12.16% which means Chase have priced at just 94 Basis Points above this rate
The current rate for a 5 year Bond (per NSE Yield Curve on 15th May 2015) is 11.7% which means Centum have priced at a cool 130 basis points above the govt yield
So you tell me which is the better buy Good analysis. I like the quarterly interest payments for chase bank tho. btw how easy is it to sell a corporate bond in the secondary market within a week? and at what price?
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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instinct wrote:Kason wrote:I don't think this is a good buy in comparison to the Centum Bond. Here's why:
Chase Bank is offering 13.1% for a 7 (SEVEN) year bond, while Centum is offering 13% for a 5 (FIVE) year bond, in addition Centum is offering Equity Linked Notes! giving bond holders a chance to participate in their equity upside based on NAV.
The pricing is done off the Govt T bond rates
The current rate for a 7 year Bond (per NSE Yield Curve on 15th May 2015) is 12.16% which means Chase have priced at just 94 Basis Points above this rate
The current rate for a 5 year Bond (per NSE Yield Curve on 15th May 2015) is 11.7% which means Centum have priced at a cool 130 basis points above the govt yield
So you tell me which is the better buy Good analysis. I like the quarterly interest payments for chase bank tho. btw how easy is it to sell a corporate bond in the secondary market within a week? and at what price? Hard sell my friend,hard sell the only corporate bond that moves is Kengen.... possunt quia posse videntur
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Rank: Member Joined: 6/14/2010 Posts: 520 Location: Nairobi
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maka wrote:instinct wrote:Kason wrote:I don't think this is a good buy in comparison to the Centum Bond. Here's why:
Chase Bank is offering 13.1% for a 7 (SEVEN) year bond, while Centum is offering 13% for a 5 (FIVE) year bond, in addition Centum is offering Equity Linked Notes! giving bond holders a chance to participate in their equity upside based on NAV.
The pricing is done off the Govt T bond rates
The current rate for a 7 year Bond (per NSE Yield Curve on 15th May 2015) is 12.16% which means Chase have priced at just 94 Basis Points above this rate
The current rate for a 5 year Bond (per NSE Yield Curve on 15th May 2015) is 11.7% which means Centum have priced at a cool 130 basis points above the govt yield
So you tell me which is the better buy Good analysis. I like the quarterly interest payments for chase bank tho. btw how easy is it to sell a corporate bond in the secondary market within a week? and at what price? Hard sell my friend,hard sell the only corporate bond that moves is Kengen.... @Maka you underestimated the market Chase Bank corporate bond has attracted over Sh6 billion worth of subscriptions, more than doubling the target set for the first tranche.
Chief executive Paul Njaga on Monday said the bank will take Sh4.5 billion instead of 3b and no more subscriptions would be accepted for the first tranche.
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Rank: User Joined: 1/20/2014 Posts: 3,528
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@Maka's response is, how bonds once bought in the 'primary' market, are easily traded in the 'secondary' market!!! Formal education will make you a living. Self-education will make you a fortune - Jim Rohn.
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Rank: Elder Joined: 6/23/2009 Posts: 13,472 Location: nairobi
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Siku za dingo http://mobile.hivisasa.c...ed-for-fraud?source=home
HF 428,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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Had even forgotten about this...  possunt quia posse videntur
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Rank: Elder Joined: 6/23/2009 Posts: 13,472 Location: nairobi
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maka wrote:Had even forgotten about this... You just could have saved a few lost souls
HF 428,000 ABP 3.49; KQ 414,100 ABP 7.92; MTN 15,750 ABP 6.45
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Rank: Elder Joined: 12/7/2012 Posts: 11,901
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enyands wrote:Chaka wrote:If I was to invest KES 100,000,what would be my net first quarterly payment? @chaka take that 100,000 go buy safaricom shares or one of the most stable doing well businesses on nse and forget about it completely and go get your equity after 4yrs .The returns I'm sure will give yyou more rreturns than bbond's . Bonds are reasonable for pension schemes that plan payment after a certain number employees retire and have to play safe with their money . TThat's just me hhow no see it ........ Looks like God send advice at that time!!! In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: New-farer Joined: 8/11/2017 Posts: 15
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Rank: New-farer Joined: 1/15/2019 Posts: 33
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I find that this is one excellent bond with relatively high yield. Obviously other investors are sharing the same opinion as this bond is already trading with higher yield on the market
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Chase Bank 13% bond
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