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Chase Bank 13% bond
instinct
#1 Posted : Wednesday, May 20, 2015 12:23:45 PM
Rank: Member


Joined: 8/17/2007
Posts: 294
Is this the best bond on offer currently?
jerry
#2 Posted : Wednesday, May 20, 2015 1:25:58 PM
Rank: Elder


Joined: 9/29/2006
Posts: 2,570
link?
The opposite of courage is not cowardice, it's conformity.
maka
#3 Posted : Wednesday, May 20, 2015 1:31:36 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,077
Location: Nairobi
instinct wrote:
Is this the best bond on offer currently?


yes....
Now how do I post it?
possunt quia posse videntur
The optimist
#4 Posted : Wednesday, May 20, 2015 3:05:49 PM
Rank: Member


Joined: 6/14/2010
Posts: 519
Location: Nairobi
maka wrote:
instinct wrote:
Is this the best bond on offer currently?


yes....
Now how do I post it?


Here you go..
hisah
#5 Posted : Wednesday, May 20, 2015 4:14:01 PM
Rank: Chief


Joined: 8/4/2010
Posts: 8,977
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!
maka
#6 Posted : Wednesday, May 20, 2015 4:21:37 PM
Rank: Elder


Joined: 4/22/2010
Posts: 11,077
Location: Nairobi
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
Kason
#7 Posted : Wednesday, May 20, 2015 5:04:17 PM
Rank: Hello


Joined: 1/12/2015
Posts: 3
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
Chaka
#8 Posted : Wednesday, May 20, 2015 5:05:12 PM
Rank: Veteran


Joined: 2/16/2007
Posts: 2,079
If I was to invest KES 100,000,what would be my net first quarterly payment?
enyands
#9 Posted : Wednesday, May 20, 2015 5:49:11 PM
Rank: Elder


Joined: 12/25/2014
Posts: 2,294
Location: kenya
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 ........
Mainat
#10 Posted : Wednesday, May 20, 2015 7:13:35 PM
Rank: Veteran


Joined: 11/21/2006
Posts: 1,583
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
instinct
#11 Posted : Thursday, May 21, 2015 10:10:05 PM
Rank: Member


Joined: 8/17/2007
Posts: 294
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?
maka
#12 Posted : Friday, May 22, 2015 9:44:26 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,077
Location: Nairobi
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
The optimist
#13 Posted : Tuesday, June 09, 2015 7:23:38 AM
Rank: Member


Joined: 6/14/2010
Posts: 519
Location: Nairobi
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.

Othelo
#14 Posted : Tuesday, June 09, 2015 9:36:29 AM
Rank: User


Joined: 1/20/2014
Posts: 3,528
The optimist wrote:
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.


@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.
obiero
#15 Posted : Saturday, July 22, 2017 6:29:39 AM
Rank: Elder


Joined: 6/23/2009
Posts: 11,859
Location: nairobi
Siku za dingo http://mobile.hivisasa.c...ed-for-fraud?source=home
COOP 5,500; KCB 3,700; KQ 221,100
maka
#16 Posted : Saturday, July 22, 2017 10:44:38 AM
Rank: Elder


Joined: 4/22/2010
Posts: 11,077
Location: Nairobi
The optimist wrote:
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.



Had even forgotten about this...Sad
possunt quia posse videntur
obiero
#17 Posted : Saturday, July 22, 2017 11:28:29 AM
Rank: Elder


Joined: 6/23/2009
Posts: 11,859
Location: nairobi
maka wrote:
The optimist wrote:
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.



Had even forgotten about this...Sad

You just could have saved a few lost souls
COOP 5,500; KCB 3,700; KQ 221,100
Angelica _ann
#18 Posted : Sunday, July 23, 2017 10:38:48 AM
Rank: Elder


Joined: 12/7/2012
Posts: 10,556
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
NFag
#19 Posted : Wednesday, November 15, 2017 5:00:46 PM
Rank: New-farer


Joined: 8/11/2017
Posts: 15
13% realy?
Mucher
#20 Posted : Saturday, April 27, 2019 1:22:01 PM
Rank: New-farer


Joined: 1/15/2019
Posts: 30
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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