Guys:
I have question:

Has any of you played around with layered (laddered?) buys/bids of Tbills?
Been toying with the idea as a method to catch rising rates since I missed the huge run-ups we had a couple of years back-cuz money was tied up in a 364-day T-bill.

The way it would work if I had ~600K and wanted to bid on an 182-day bill:
I would bid 100K each month, for six months-continuously. I would then have some chums every month in a cyclic manner so that I am ready to jump into better rates if and when they come up instead of tying up my whole 600K in a single 182-day bid.

Could also work with 91-day bills. Heck, I suppose one could bid every week there was an auction throughout the year....

Thoughts?
TIA.

Yea you can do that...i have done it with bonds...I get regular maturities through out the year....

Oh cool..Any reason why you prefer to do it with bonds instead of T-bills?

Issuing IFB1/2017/12Yr. Coupon 12.50%. Settlement 27-Feb-17. Maturity Date 12-Feb-29. Amortised payments: 21-Feb-22 (20%), 19-Feb-24 (45%) & 12-Feb-29 (100%).

Bado haijatoka...

i called cbk.not yet.i will be among the first to know cause the prospectus will hit my email before the news is public.

Central Bank of Kenya, acting in its capacity as fiscal agent for the Republic of Kenya, invites bids for the above bond whose terms and conditions are as follows:-

Issuer : Republic of Kenya.
Amount : Kshs. 30 Billion.

Purpose : For partial funding of infrastucture projects in Roads, Energy and Water sectors.

Tenor : Twelve-year
Coupon : 12.500%

Period of sale : 07/02/2017 to 21/02/2017
Value Date : 27/02/2017

Auction Date : Wednesday, 22/02/2017
Results : Investors should obtain details of amounts
payable for successful bids, from Central Bank on Thursday 23/02/2017.

Price Quote : Discounted/Premium/ Par
Minimum Amount : Kshs. 100,000.00

Interest Payment Dates:
28/08/2017 24/08/2020 21/08/2023 17/08/2026
26/02/2018 22/02/2021 19/02/2024 15/02/2027
27/08/2018 23/08/2021 19/08/2024 16/08/2027
25/02/2019 21/02/2022 17/02/2025 14/02/2028
26/08/2019 22/08/2022 18/08/2025 14/08/2028
24/02/2020 20/02/2023 16/02/2026 12/02/2029

Redemption Date : 12/02/2029

Taxation : The Bond will be tax free as is the case for all Infrastructure Bonds as provided for under the
Income Tax Act.

Redemption Structure :

21st February, 2022- 20.000% of unencumbered
outstanding principal amount

19th February,2024-45.000% of unencumbered
outstanding principal amount

12th February, 2029 - 100% - Final Redemption
of all outstanding amounts

Amortization : No partial redemption will be paid on
encumbered securities on armotization dates.
Any amount upto Kshs. 1.0 million per CDS
account at armotization will be redeemed in
full except for encumbered securities.

Auction Method : Multi-Price Bid Auction

Auction Method : Multi-Price Bid Auction......... what does this mean?

This bond business is difficult to grasp!

If anyone can be as so kind as to explain how to arrive at the quoted yield? Is this the same as the coupon rate? ( newbie questions )

@ Maka , thanks, by price do you mean total value I am bidding? e.g 1 million? Would that not be face value?

@ Maka, thanks , So ..if at auction they state ''Price per Kshs 100 at Average Yield '' that means its at par therefore yield would be zero?

Is the face value the same as the amount you are bidding? Mysterious world of bonds.