I didn't think I would find a Zambian to explain Zambian government bonds but it's a good thing I came across you, thank you soo much for the video and knowledge shared.
Well explained. Kudos. My personal opinion is that the current model is better for me in comparison to the discount rate because I go for short tenure bonds (2,3 and 5 years).
Over all ROI is less under the new system. However when you consider time value of money, less money now may be better than more money tomorrow, especially considering increasing inflation rate.
Thank you, madam. I just jumped onto the Gov Securities wagon in October with my first TBill, and then the change came. I have been quite concerned, but this gives me hope to continue. Again, thanks.
My simulation of the expected range for coupon in the January 2024 auction. 2 years bond 18 to 23% 3 years bond 26 to 30% 5 years bond 29 to 32% 7 years bond 30 to 35% 10 years bond 33 to 37% 15 years bond 34 to 40% Fingers crossed
@@MukonkiMukonkelaYou’re welcome! Money matters have not been my specialty & thus I’ve subscribed to learn a little bit more than the little info that I’m getting elsewhere
Thanks Mukonki for your great help in assisting me understand government securities. Just one question- BOZ classify investors of Zmw1,000 to Zmw499,999 as non competitive and Zmw500,000 + as competitive binders. What is the effect of me selecting non-competitive binder if i invest Zmw700,000 as i wouldn't know what rate to state if i select competitive?
Starting my bond ladder this month.I truly hope that the coupon rate will be higher than what was prevailing before..... otherwise kaya!!! Have to look elsewhere
Hi, mukonkela, well articulated i must say. Just learning about grz bonds and am so interested want to learn more. If I heard you properly, do i need to go to my bank and open an account particularly for the bond? Am Mr. Simbeye.
No, you need to open a CSD account with boz. If you already have a bank account that's ok. You can use the same bank account on the CSD application. To create the CSD account go to boz.zm you'll also need the tpin certificate, nrc and photo, all soft copies
A path to financial freedom, great work madam.. Question. If I invested k50 000 or k100 000 today in a 5yrs bond how much is the interest rate currently
currently there is no interest rate, that is what the announcement was for.After 5years,you ill get back the same amount you invested but bare in mind inflation will have an effect on the value of your money.
Hello Mukonki, please help me understand. What is the difference between a bond bought through a bank eg StanChart, Zanaco etc and the one you buy direct from BOZ. In the event I just instruct my bank to buy a bond for me, will there be any difference in terms of coupon rates with those you buy from BOZ directly without going through the bank
Not much. The important one I've noticed is the investor portal dashboard. If your bank does the investing, at the moment you can't see all your investments on your dashboard when you login into your CSD account online. Unless things have changed cos there's a lot of change seeing the investor portal is a new development
BOZ handling fee is still 1% and each bank charges different handling fees also. Find out how much your bank charges bcoz BOZ is fixed 1%.. Your bank is your broker so they'll definitely charge you even if you're using the investor portal.
@@muleyamusole9565hi with the new method, I just signed up.. when your bid is successful, do I pay the govt manually or is it automatically deducted from the bank account I provided?
If i understand your table using your figures, does it mean after 10 years using the old issuing method ROI (discount plus coupon payments) would be K6,939,200 and with the new method at 25.5% ROI would be K5,765,040 from coupon payments?
@@MukonkiMukonkela Am referring to the actual cash i.e investing K2260800 cost value which is k4,000,000 face value using the old method but will be cost/face value using the new method.
I didn't think I would find a Zambian to explain Zambian government bonds but it's a good thing I came across you, thank you soo much for the video and knowledge shared.
My pleasure!
Okay I get it....on the rate higher coupon rate
Well explained Mukonki, you are my information hub when it comes to government bonds...… please keep it going.🔥
🙂
Brilliant explanation... Thank u
Well explained. Kudos. My personal opinion is that the current model is better for me in comparison to the discount rate because I go for short tenure bonds (2,3 and 5 years).
Over all ROI is less under the new system. However when you consider time value of money, less money now may be better than more money tomorrow, especially considering increasing inflation rate.
Please consider uploading a tutorial on how to navigate the CSD account
Fantastic video. Thank you so much. For future videos, please consider doing one on monetary policy rate.
With highest yield rate the new method of buying bonds is the best
Very insightful take on bonds.
You're so eloquent.
Keep up with the post
thanks, am new to govt bonds but learnt alot.
Welcome!
Great coach, very clear lesson
well explained....kindly help me to open a CSD account as the portal is not approving my application
Thank you, madam. I just jumped onto the Gov Securities wagon in October with my first TBill, and then the change came. I have been quite concerned, but this gives me hope to continue. Again, thanks.
My simulation of the expected range for coupon in the January 2024 auction.
2 years bond 18 to 23%
3 years bond 26 to 30%
5 years bond 29 to 32%
7 years bond 30 to 35%
10 years bond 33 to 37%
15 years bond 34 to 40%
Fingers crossed
How accurate have your predictions been so far?
Came across to this useful information today WOW thanks a lot your content is Faya 🔥🔥🔥
Oh Wellington thanks alot. You've made me feel like fayaaa 🔥🔥🔥 today. 😊
Keep up with the updates
Thanks. Just found your channel & I’ll finish listening during my day
Thanks 🙏
@@MukonkiMukonkelaYou’re welcome! Money matters have not been my specialty & thus I’ve subscribed to learn a little bit more than the little info that I’m getting elsewhere
very insightful. well explained.👍👍
Glad it was helpful!
I need to know more about the bonds its my first time
I have been waiting for your video, keep up the good work
Thanks, will do!
Well explained.... Thank you so much.
You are welcome
Please share insights on callable bonds.
Thanks Mukonki for your great help in assisting me understand government securities.
Just one question- BOZ classify investors of Zmw1,000 to Zmw499,999 as non competitive and Zmw500,000 + as competitive binders. What is the effect of me selecting non-competitive binder if i invest Zmw700,000 as i wouldn't know what rate to state if i select competitive?
The cutoff yield rate or coupon rate that wins the bid is what will determine your coupon income
Awesome,thanks
Good evening, I'm interested to know more on government bonds
Do you have any video on the early redemption of a government bond?
Thank you so much for the explanation
thank you for the explanation 🙏
Well explained. Good job!
Really want to know more about this
Calculating NPV of say 1 million....what percentage do you use?
Eagerly awaiting next week when we can reflect on what the first coupon rate was.
😊😊😊
Thanks for this explanation. Can you please share your excel template?
How has the coupon rate behaved post December 2023? Am new in theae investments.
Madam please guide on the strategy that one can use to compound bond interest. So that there's growth.
Do we have infrastructure bonds in Zambia??and what are they?i have heard of them but don't really understand them.
Starting my bond ladder this month.I truly hope that the coupon rate will be higher than what was prevailing before..... otherwise kaya!!! Have to look elsewhere
Thanks Mukonki for breaking this down. Would you kindly share the excel document with me?
Share your email address to mmukonkela@insightpartnersafrica.com
Hi, mukonkela, well articulated i must say. Just learning about grz bonds and am so interested want to learn more. If I heard you properly, do i need to go to my bank and open an account particularly for the bond? Am Mr. Simbeye.
No, you need to open a CSD account with boz. If you already have a bank account that's ok. You can use the same bank account on the CSD application. To create the CSD account go to boz.zm you'll also need the tpin certificate, nrc and photo, all soft copies
Hi @Mukonki please share the excel template used in the video
Hello, just a reminder, what is the percentage of withholding tax and handling fee?
16 percentage
How much does one need to invest in govnt bonds
Well explained ma'am..
I am a student and I heard that i can actually start with 1000.. how do I go about it if I want to invest/buy??
A path to financial freedom, great work madam..
Question. If I invested k50 000 or k100 000 today in a 5yrs bond how much is the interest rate currently
currently there is no interest rate, that is what the announcement was for.After 5years,you ill get back the same amount you invested but bare in mind inflation will have an effect on the value of your money.
@@Natalia-mf6ed thank you, on that issue Iam very much aware I meant to ask the interest rate per coupon or the percentage for 5 yrs...eg 10yrs 13%
Please create a video to compare old and new T-Bills
Tbills haven't changed. It's bonds. I'll do a comparison video
Can you share that excel sheet?
Interesting explanation.Help me to know the cost value and coupon rates for k80000 and k100000.Am planning to invest for a period of 15years
Too bad you didn’t get a response. I’d have equally benefited
How can I get in touch with you madame?
Madam, to what extent can one depend on the GRZ Bonds for loan collateral
I really need this education. How do I contact you directly
better to be very active on the secondary market and try to make a profit there
What is a secondary market
Is It possible to get a loan against a government bond?
Yes
Hello Mukonki, please help me understand. What is the difference between a bond bought through a bank eg StanChart, Zanaco etc and the one you buy direct from BOZ. In the event I just instruct my bank to buy a bond for me, will there be any difference in terms of coupon rates with those you buy from BOZ directly without going through the bank
Not much. The important one I've noticed is the investor portal dashboard. If your bank does the investing, at the moment you can't see all your investments on your dashboard when you login into your CSD account online. Unless things have changed cos there's a lot of change seeing the investor portal is a new development
Okay thank you
What's the transaction fee in government securities T-bils and bonds when you use investors portal? your urgent response will highly be appreciated
BOZ handling fee is still 1% and each bank charges different handling fees also. Find out how much your bank charges bcoz BOZ is fixed 1%.. Your bank is your broker so they'll definitely charge you even if you're using the investor portal.
@@muleyamusole9565hi with the new method, I just signed up.. when your bid is successful, do I pay the govt manually or is it automatically deducted from the bank account I provided?
If i understand your table using your figures, does it mean after 10 years using the old issuing method ROI (discount plus coupon payments) would be K6,939,200 and with the new method at 25.5% ROI would be K5,765,040 from coupon payments?
Are you referring to present values or actual cash?
@@MukonkiMukonkela Am referring to the actual cash i.e investing K2260800 cost value which is k4,000,000 face value using the old method but will be cost/face value using the new method.
You have not explained on non competitive bonds In relation to the new announcement-help!
th-cam.com/users/livewbVZsGjI_0Y its mentioned here
the worry is the value of the K4,000,000 in 10 years
My opinion, don't go for those long term bonds. Inflation will chew your profits away... stick to 2 and 3 years bond. At maximum do a 5years
How do I contact you I have a lot of questions