🚨MARCH 2023 INFRASTRUCTURE BOND: What is Bond Redemption Structure & Bond Amortization In Kenya?

How do you amortize bonds?
Bond Redemption Structure & Bond Amortization Explained in relation to Investing in Treasury Bonds in Kenya: specifically, the March 2023 Infrastructure Bond (IFB1/2023/17)
For a full guide on how to start investing in Treasury Bonds in Kenya, read this article 👉🏽 thewealthtribe...
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[@TheWealthTribe]

The results are out. The coupon rate is 14.399% The highest-ever coupon rate!

[@garrygerry1889]

Does 14.399% apply to all investors even those who bid below ?

[@TheWealthTribe]

@@garrygerry1889 if you bid below 14.399% CBK will apply your low bid. That's why it's always advisable to bid average rate (for retail investors)

[@vivekbhirud]

What does that mean? If someone bid 14%, what happens? He/she gets 14%? What happens if someone bids more then the coupon? 14.5% for example?

[@TheWealthTribe]

@@vivekbhirud Yes, if you bid 14%, you'll get 14%. If you bid more (assuming you were to invest less than 20M), it'll be rejected. I shared such an example on my Instagram.

[@garrygerry1889]

@@TheWealthTribe @vivekbhirud Actually after researching I found out that's not the case. Coupon of 14.399% applies to all investor but If you bid below 14.399% and bid is accepted you will be charged a premium and If you bid above 14.399 and bid is accepted you will get a discount on the principal amount.

[@Omwaka]

You made me to start investing in bonds, your analysis was spot on. I have heard from you things that I had never heard before. Be blessed.

[@TheWealthTribe]

I'm so glad to see people who not only watch the analysis but also IMPLEMENT! Congratulations and thank you for stopping by to provide this feedback!

[@WordsPictures997]

Agatha, you are FANTASTIC! and such a great Teacher. Thank you so much for your channel and for using everyday examples that are simple to understand.

[@TheWealthTribe]

Thank you so much! 🤩 And you're super welcome!

[@meshacknyabuto3602]

Thanks my.couch.i.have.alredy.pressed.my.bind.good.job

[@TheWealthTribe]

Congratulations Meshack!

[@beatricemusyoka2168]

Congratulations, excellent explanation on Infrastructure Bonds and well articulated .

[@TheWealthTribe]

Thank you! I'm glad you found it helpful!

[@annnduku2978]

I am a young investor who learnt the whole thing of bonds on You Tube but to be precise you are the number one advisor with the most crucial and detailed information about bonds and bills in Kenya. I wish I knew you before but every season with a reason. The money is running away from us but we will keep on pressing. 🙏🙏🙏🙏.

[@TheWealthTribe]

Welcome to The Wealth Tribe! Now that you know, make sure to invest to prevent your money from running away from you!

[@tonnie7079]

Gosh! I had mistaken the payment date to be on 15th March but it is actually on 13th as you rightly pointed out. Thx for the heads-up. I am subbed! This is the vibe I want to hear wachana na Wamlambez sijui Amapiano!

[@TheWealthTribe]

😂😂😂😂😂Welcome to The Wealth Tribe!

[@Omwaka]

Thanks very much, I started following you recently but wow, you really understand this bond thing. Thanks very much and God bless you

[@TheWealthTribe]

Thank you and welcome to The Wealth Tribe!

[@charlesokanya7408]

You are amazing! Welldone on putting in the effort and thanks enlightening us.

[@TheWealthTribe]

My pleasure!

[@damarisnjeriofficial]

I have really learnt alot from you Agatha,thankyou 🙏

[@TheWealthTribe]

Happy to hear that Damaris! 😊

[@djswodi]

Thank you. Kindly educate us on how to buy and sell T- bonds on the secondary market.

[@TheWealthTribe]

Will do soon

[@ericksimiyuotido4331]

Thanks for this great information.

[@TheWealthTribe]

Welcome

[@terrynjoki3086]

From your teachings I love bonds more I wanna start with normal bonds coz its 50k then I save for infrastructure bonds

[@TheWealthTribe]

Okay

[@anthonywanjiru9067]

Hi Agatha. Thank you for your informative content. My question is: how often are IFBs floated by the CBK?

[@TheWealthTribe]

There's no schedule. The strategy I recommend is to set up a Sanlam Money Market Fund account and use it as an "Investment Fund" where you save money in it as you wait for the next Infrastructure bond. Here's the guide 👉🏽 kzbin.info/www/bejne/pZzNeGOtp5tlY7c

[@anthonywanjiru9067]

@@TheWealthTribe thank you for your timely and apt reply.

[@vivianmbugua4442]

Please advise on the process of selling a bond on secondary market

[@TheWealthTribe]

Contact your stock broker, they'll help.

[@betinansi201]

Hi, thanks for your explanation but what is an amortized bond ( without loans etc ) reference June IFB 2023. Thanks.

[@TheWealthTribe]

I will upload a video to explain the June IFB

[@betinansi201]

@@TheWealthTribe thank you, looking forward. Whats your @ on Instagram i follow you there too please ? Thanks, good job.

[@maureennjoki6381]

Hi Agatha. This is awesome.quite educative.still learning about bonds & some day i will invest.i really wanted you to mention roughly how much one would get every 6 months as interest with a principal of 100,000...the calculations are still a challenge for me.thanks

[@TheWealthTribe]

Hi Maureen, Like I explained in the video, we’ll know the average coupon rate from Central Bank after the period of sale ends. If for example they give 14%,:14% of KES 100,000 is KES 14,000. That means you'll be paid KES 7,500 every 6 months.

[@eunicemwangi2195]

Hello Agatha ,so does it mean ,the higher the interest rate ,the higher the cash u will get interms of interest. e.g. 14%,13.50%,12%

[@TheWealthTribe]

@@eunicemwangi2195 yes

[@LucyWainaina-y6d]

Hello.if i take a loan on my bond .will i be getting interest semi annually on my invested amount

[@TheGushy]

Hello, just stumbled on this youtube channel, and it's amazing. I was wondering though how do I fund a virtual account what is the swift code for CBK.

[@TheWealthTribe]

Do you already have a CDS account? You don't need a swift code. CBK will have already sent you the details you need to do the transfer

[@TheGushy]

@@TheWealthTribe thank you for the reply. I do have a CDS account.

[@TheWealthTribe]

@@TheGushy then they must have sent you the transfer details. Do an RTGS transfer

[@TheWealthTribe]

A Wealthtriber asked: If you use part of your bond as collateral for a loan, do you still continue receiving your interest payouts? If yes, is it on the full value or only on your unencumbered? Answer: If you use your title deed as collateral for a loan can you still farm and harvest? The collateral is a fallback for the lender and has nothing to do with you receiving interest. It only means you cannot sell the security in the secondary market because it's encumbered.

[@vivekbhirud]

Can you use bond as a collateral if you have invested through an authorized stock broker?

[@TheWealthTribe]

@@vivekbhirud Yes. But in this case, your broker will have to countersign

[@stevedavid3766]

How do I benefit from this thing apart from getting a loan...?

[@TheWealthTribe]

It's an investment. You earn interest paid twice a year.

[@Justchilling8261]

Thank you 💝

[@midomarvin8793]

Hapo sawa. ✊🏾

[@TheWealthTribe]

💪🏾

[@bloomingtoladies7360]

Kind request, what amount of loan is allowed by the banks if I have an infrastructure bond for 1.5million that ? And also,how long will I have to pay back the loan? Will it be as long as the bond is present? I.e. until the bond matures? Thanks.

[@TheWealthTribe]

Hey, The above questions can only be answered by your bank: the terms and conditions of the loan is up to them.

[@EddieBOY73]

Agatha do you know why it is taking long to PROCESS applications for CDS account? I applied on 17th January 2023. Todate, I have heard nothing from CBK even after making enquiry by email. I feel bad missing bidding for this Infrastructer bond.

[@TheWealthTribe]

I've heard this complaint from several people and CBK says that they're taking long because have a backlog of applications. Maybe you could try go there physically to check or write to [e-mail]

[@EddieBOY73]

@@TheWealthTribe This is a good advise. I will see what to do as at the moment am in London for a few months.

[@joymungai1988]

Did you get help? Applied 2 months ago yet to hear anything from them....funny when I opened I didn't see many people plus...they work from 9am-1pm....I don't believe their backlog story

[@EddieBOY73]

@@joymungai1988 Have you got intouch with them? If so, what did they say?

[@joymungai1988]

@@EddieBOY73 I got mine today, too late though, but I'll prepare for next time

[@mumbajaphet135]

Hello, I have sort of a weird question.... Say you invest X amount in a bond, then you take a loan on 100% of the bond, does this mean all of it is encumbered hence no payments semiannually

[@TheWealthTribe]

Yes, unless you'll have paid the loan by the time the partial payments are done.

[@tonnie7079]

One More thing though, if I bid at 14.0% but the average after auction is 13.5%; will I still get the bond at 14.0 assuming 14.0 is still within the cut-off points?

[@TheWealthTribe]

In this case, your bid is likely to be rejected. As a retail investor, it's always best to bid the average rate which is 0

[@benwanyoike67]

Finally. The coupon rate is 14.399% Highest-ever coupon rate IN recent past!

[@TheWealthTribe]

🤔

[@abumagiokiplasma4711]

Glad i bid 14.399 is quite good...

[@TheWealthTribe]

It's always exciting to see your comment in these bond videos! You're doing very well in your investing journey!

[@abumagiokiplasma4711]

@@TheWealthTribe Thanks Agatha..Actually its You i should appreciate... U helped clarify the investment as well as Help me think thru How much passive income i could Generate from an X amount of Bonds..Talk about Starting with the end in Mind... Asante to u...

[@TheWealthTribe]

@@abumagiokiplasma4711 karibu sana

[@annwanjiru8242]

Also good to advise people that if one is able to invest for six months, let's say from January to June, you will be on salary for the whole year during the years of investment.for retiree's n you have been given your benefits let's say 3million,invest 500000 for six months you'll be getting at least 30k every month.kizungu is not my language though

[@TheWealthTribe]

Yes. The concept is called bond laddering. I teach about it