wazua Fri, Apr 17, 2026
Welcome Guest Search | Active Topics | Log In

7 Pages<12345>»
30yr bond at 12%. Any takers?
Options
Previous Topic · Next Topic
kizee1
#21 Posted : Thursday, February 10, 2011 9:47:56 AM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
2012 wrote:
kizee1 wrote:
theres also a risk that in 30 years teh country u know as kenya may cease to exist.....


And which tenant will agree to continue paying you rent in this situation? How much will the Kes that you are holding be worth? It is upon you and me to make sure that scenario doesn't occur otherwise no investment will make sense even being a refugee somewhere with $1m.



so you will buy the bond? whats your long terms view on interest rates?
Back to top
  |
2012
#22 Posted : Thursday, February 10, 2011 9:55:00 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
kizee1 wrote:
2012 wrote:
kizee1 wrote:
theres also a risk that in 30 years teh country u know as kenya may cease to exist.....


And which tenant will agree to continue paying you rent in this situation? How much will the Kes that you are holding be worth? It is upon you and me to make sure that scenario doesn't occur otherwise no investment will make sense even being a refugee somewhere with $1m.



so you will buy the bond? whats your long terms view on interest rates?


If I had the cash I would. I however don't think it's worth investing less than 2m. I know the biggest fear is inflation but think about it, where would you invest to beat inflation by 100%? Nowhere and we all know that the worst it can get is around 5% so 12.5% is pretty good. Ama?

BBI will solve it :)
Back to top
  |
kizee1
#23 Posted : Thursday, February 10, 2011 1:34:49 PM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
2012 wrote:
kizee1 wrote:
2012 wrote:
kizee1 wrote:
theres also a risk that in 30 years teh country u know as kenya may cease to exist.....


And which tenant will agree to continue paying you rent in this situation? How much will the Kes that you are holding be worth? It is upon you and me to make sure that scenario doesn't occur otherwise no investment will make sense even being a refugee somewhere with $1m.



so you will buy the bond? whats your long terms view on interest rates?


If I had the cash I would. I however don't think it's worth investing less than 2m. I know the biggest fear is inflation but think about it, where would you invest to beat inflation by 100%? Nowhere and we all know that the worst it can get is around 5% so 12.5% is pretty good. Ama?


you havent answered my question , i asked u a very direct question...WHAT IS YOUR LONG TERM VIEW ON INTEREST RATES? the highest inflation can get to is 5 %? really?
Back to top
  | | Edit by user: Thursday, February 10, 2011 1:37 PM | Reason: Not specified
MatataMingi
#24 Posted : Thursday, February 10, 2011 7:05:29 PM
Rank: Member

Joined: 11/17/2009
Posts: 399
Location: Where everyone knows you
@ Kizee1 & 2012.
Let me give you my thoughts on this .

Interest rates are going UP. And will continue to do so for untill ènd of 2012. After that who knows ?

@ year bond issue 2/2009/2 dated 25/05/09 had a coupon of 8.7505.
But the yield was 10.193%.
Check it if you want to.
Interest rates WILL go up. The Government is Hungry. Elections are are coming soon .
Interest rates WILL go up every week. Mark my word.

No offence meant to anyone who has a different view.

Regards and sleep well.
Back to top
  |
Wa_ithaka
#25 Posted : Friday, February 11, 2011 12:12:22 AM
Rank: Veteran

Joined: 1/7/2010
Posts: 1,279
Location: nbi
I think if it was priced at similar level to bank loans, I might think about it. At 12%, its 10% after the taxman has his wicked way with the interest so ou double our money every 10yrs.

I think even growing trees or raising cettle will give you much higher returns.
Wasa ikae.
The Governor of Nyeri - 2017
Back to top
  |
VituVingiSana
#26 Posted : Monday, February 14, 2011 10:12:03 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,368
Location: Nairobi
The w/tax is 10% of the coupon but that is 1.2% no matter what the yield...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
erifloss
#27 Posted : Tuesday, February 15, 2011 8:22:46 AM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
kizee1 wrote:
2012 wrote:
kizee1 wrote:
2012 wrote:
kizee1 wrote:
theres also a risk that in 30 years teh country u know as kenya may cease to exist.....


And which tenant will agree to continue paying you rent in this situation? How much will the Kes that you are holding be worth? It is upon you and me to make sure that scenario doesn't occur otherwise no investment will make sense even being a refugee somewhere with $1m.



so you will buy the bond? whats your long terms view on interest rates?


If I had the cash I would. I however don't think it's worth investing less than 2m. I know the biggest fear is inflation but think about it, where would you invest to beat inflation by 100%? Nowhere and we all know that the worst it can get is around 5% so 12.5% is pretty good. Ama?


you havent answered my question , i asked u a very direct question...WHAT IS YOUR LONG TERM VIEW ON INTEREST RATES? the highest inflation can get to is 5 %? really?

@2012, a little reality check on inflation rates:
2008 - 16.3%
2009 - 9%
2011 jan - 5.42%
And all this is after changing their calculation formula, base year and the contribution by foodstuff(downwards). The bond's return might look good but you should look at the opportunity cost coz 30 years is a damn long time....
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Back to top
  |
2012
#28 Posted : Tuesday, February 15, 2011 9:54:38 AM
Rank: Elder

Joined: 12/9/2009
Posts: 6,592
Location: Nairobi
kizee1 wrote:
.WHAT IS YOUR LONG TERM VIEW ON INTEREST RATES? the highest inflation can get to is 5 %? really?


My friend, nobody can honestly answer that question but it's not looking good at the moment.
1. The Meteorological Dept. is predicting doom as always
2. Next year is election year and you know what that means to the western world
3. The CBK Governor's term is coming to an end and we don't know what Kibs intends to do.
4. The PM having drastically dropped in popularity is spreading fears of war in 2012.

I humbly withdraw that statement on 5%.

BBI will solve it :)
Back to top
  | | Edit by user: Tuesday, February 15, 2011 9:57 AM | Reason: Not specified
VituVingiSana
#29 Posted : Tuesday, February 15, 2011 11:03:53 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,368
Location: Nairobi
2012 wrote:
kizee1 wrote:
.WHAT IS YOUR LONG TERM VIEW ON INTEREST RATES? the highest inflation can get to is 5 %? really?


My friend, nobody can honestly answer that question but it's not looking good at the moment.
1. The Meteorological Dept. is predicting doom as always
2. Next year is election year and you know what that means to the western world
3. The CBK Governor's term is coming to an end and we don't know what Kibs intends to do.
4. The PM having drastically dropped in popularity is spreading fears of war in 2012.

I humbly withdraw that statement on 5%.
Add food inflation [not just Kenya's drought but also worldwide food prices rising] Then add oil shocks [Oil prices are +12% vs last year. Even touched $100. An uprising in Bahrain or Qatar [or saudi arabia] can push oil up to $120 easily...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
kizee1
#30 Posted : Tuesday, February 15, 2011 11:35:44 AM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
ok mr 2012...wats ur short term view on rates? maybe u cud scalp ur bond position and make a coin
Back to top
  |
7 Pages<12345>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.