Investor guide
Annualised yield is not the same as holding-period return
Why an annualised auction yield differs from return earned over a shorter holding period.
What annualised yield means
Annualised yield expresses a rate as though the investment lasted a full year. It supports comparison but is not the percentage cash return earned over the actual holding period.
How days to maturity affect return
For the same annualised yield, a receivable with fewer days remaining generally has a smaller discount than one with a longer period. Days to maturity therefore form part of settlement calculation.
Settlement price and expected return
The investor pays the settlement amount and expects the debtor to repay the invoice face value. The difference is an expectation before considering delays, losses, taxes or other costs.
Why estimates can change
Time passes, auction bids improve and operational adjustments may be required. The server-authoritative calculation and final settlement record should be used instead of a browser estimate.
How AfriRuil displays yield
Auction yields are stored in exact basis points and labelled as annualised. Portfolio screens keep purchase price, expected repayment, maturity and outstanding value separate.