Treasury Bill is an option of Fixed income

summa · 1 Treasury Bill is an option of Fixed income Sun Jul 24, 2022 7:59 am

summa

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Hi folks

I have a few questions to solve before moving into the T bill market. Hope, many of you have the same in your mind, and better if we can get to gether discuss this and share your experience and thoughts.

1. Is there any possibility of default risk involved in T-bills under the current economic situation?

2. Is there any risk involved if we select non-banking primary dealers to purchase T-Bills?

3. Is there any grading system (Let's say fitch, RAM rating) for primary dealers?

4. Why do Non-banking primary dealers offer higher rates than Banking primary dealers? E,g: People's bank rates are low compared to CAL

5. Is there any insurance for the T-bills which is available for Fixed Deposits such as Sri Lanka Deposit Insurance and Liquidity Support Scheme (SLDILSS)

Please share your thoughts and questions, may be very helpful to everyone in this forum.
6.

ResearchMan · 2 Re: Treasury Bill is an option of Fixed income Fri Feb 09, 2024 1:12 pm

ResearchMan

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Indeed it's also one of the good invesment options. I parket some of my funds there when the rate hit over 25%. As I expected rates are going to plummet I sold them and invested in the CSE specially in high dividend champions. Every asset is a risk.

deli · 3 Re: Treasury Bill is an option of Fixed income Tue Feb 13, 2024 8:36 pm

deli

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Not viable now, why go for TBs when shares have hit rock bottom and have more probability to give you lucrative abundance where as fixed income gives you what? $4 for every $20 investment? Honestly then go to the closest bank and open a FD!

ResearchMan · 4 Re: Treasury Bill is an option of Fixed income Wed Feb 14, 2024 12:11 pm

ResearchMan

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After selling my entire TBs bought shares, kept emergency money and opened a fixed deposit in the oldest private bank in SL to be used as a pocket money. No need to go to bank. Everything we can do online. Hope my money is safe. CB''s sudden undervaulation of rupee made many poor. Overnight dropped wealth by more than 100%. Rupee went from Rs.180 to Rs.400 aginst USD. Even if we get 100% gain from any investment we don't make any capital gain. On top of that we saw two extreme scenarios in TB rates within the short period. Sent them to moon(over 25%).Put them down to below 13%.

At least preservation of capital is important for me. Investing in highly leveraged companies are highly risky. Better pick at least one or two multibaggers.

Good luck!

agentnrox · 5 Re: Treasury Bill is an option of Fixed income Fri Feb 16, 2024 11:01 am

agentnrox

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ResearchMan wrote:After selling my entire TBs bought shares, kept emergency money and opened a fixed deposit in the oldest private bank in SL to be used as a pocket money. No need to go to bank. Everything we can do online. Hope my money is safe. CB''s sudden undervaulation of rupee made many poor. Overnight dropped wealth by more than 100%. Rupee went from Rs.180 to Rs.400 aginst USD. Even if we get 100% gain from any investment we don't make any capital gain. On top of that we saw two extreme scenarios in TB rates within the short period. Sent them to moon(over 25%).Put them down to below 13%.

At least preservation of capital is important for me. Investing in highly leveraged companies are highly risky. Better pick at least one or two multibaggers.

Good luck!

Could you please suggest few multibaggers stocks ?

ResearchMan · 6 Re: Treasury Bill is an option of Fixed income Sat Feb 17, 2024 2:31 pm

ResearchMan

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Dear Friend, I picked Gran and Tafl great discount to the market and peers after seeing their mutibagger characteristics. In the past I had shares of mutibaggers such as TPL, Soy and Cins etc.There are few more and have kept on my radar. Currently I have only about 6 stocks in my portfolio. Basically, target strong companies with rising cash flow, low debt, and growth at least for next 5 to 10 years. You will get dividends and capital gain. In the past I ignored dividends but now I see declaring dividends means company is stable and can judge their financial strength. If you reinvest them, you can find out compound return. That’s what I have been doing over the last 3 years. CSE is better than bond market. When others run and leave, we should get in. In some period, we get lifetime opportunities. Didn’t we have banking rally, Tiles rally and plantation rally? When we miss one, we will get another one.

TB rates have dropped below 10%.

https://economynext.com/sri-lanka-treasuries-yields-fall-across-maturities-150922/

Good luck!