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Singapore Bonds

B

bart12

Alfrescian
Loyal
Re: Interesting Bond issues

Well Run, rather stick with the current Hyflux perpetual 6% bond listed on SGX. Its effective yield might be a tad lower at 4+% .At least it provides flexibility to sell. It is also callable at 2018 and yield will be stepped up to 8%.

Btw if they are in denominations of $250,000 ..most likely it is offered by way of placement to investors who fall within Sections 274 and/or 275 of the Securities and Futures Act, Chapter 289 of Singapore. Not for the average joe on the street lah..
 
R

Runifyouhaveto

Alfrescian
Loyal
Re: Interesting Bond issues

bart12 said:
Well Run, rather stick with the current Hyflux perpetual 6% bond listed on SGX. Its effective yield might be a tad lower at 4+% .At least it provides flexibility to sell. It is also callable at 2018 and yield will be stepped up to 8%.

Btw if they are in denominations of $250,000 ..most likely it is offered by way of placement to investors who fall within Sections 274 and/or 275 of the Securities and Futures Act, Chapter 289 of Singapore. Not for the average joe on the street lah..
Click to expand...

Yes sir, Hyflux 6% is an important chapter in local retail financial market. It offered higher yields than many dividend plays and served as a good reference for the retail investor on merits and risks of preference shares.

RUN keenly awaits the Temasek retail bonds in smaller denominations.
I believe we will have covered bonds for retail investors too.
 
B

bart12

Alfrescian
Loyal
Re: Interesting Bond issues

I believe Temasek retail bonds will have low yield.. Won't be surprised if it is around the range of CapMallA bond listed this year
 
R

Runifyouhaveto

Alfrescian
Loyal
Re: Interesting Bond issues

bart12 said:
I believe Temasek retail bonds will have low yield.. Won't be surprised if it is around the range of CapMallA bond listed this year
Click to expand...

well said.
Depending on maturity, I figured that it will between CPF-OA and CPF-SA yields. Not likely to exceed 4%, unless it is 20 or 30 years issue.

References:
The best FD i can find now, is 1.3%pa for 2-3 years
HDB just issued 3.1%pa for 15 years.
 
krafty

krafty

Alfrescian (Inf)
Asset
Re: Interesting Bond issues

bro run, normally, people buy bond is because equity market not doing well and they are seeking safety in bond?
 
R

Runifyouhaveto

Alfrescian
Loyal
Re: Interesting Bond issues

krafty said:
bro run, normally, people buy bond is because equity market not doing well and they are seeking safety in bond?
Click to expand...

1. Yes, you are right.

2. No, even the safest bonds can be manipulated by evil RMs into speculative financial instruments, eg. asking you to make $20 downpayment to own $100 of HDB bonds (safe) through financing.

3. Maybe, something is going to happen. I read a few articles that advocates a new thinking in bond investment (because something is going to happen) that encourages us to chase this mad bond rally. They are encouraging investors and speculators to dump long-term bonds for short-term ones because the chances of default is much lower for good blue chip short-term bonds:
- Investors will be assured of (higher odds of) redemption within 2-3 years. In the event market crashes, Investors can happily get par value back and switch to equities or properties.
- Speculators can lock-in the cost of financing these short-term bonds with fixed short-term (cheaper) loans to make easy $$$ too.




Therefore the answer: all of the above.
 
krafty

krafty

Alfrescian (Inf)
Asset
Re: Interesting Bond issues

seemingly, this relationship between bonds and equities is getting screwy recently... thanks for advice...cheers...:smile:

Runifyouhaveto said:
1. Yes, you are right.

2. No, even the safest bonds can be manipulated by evil RMs into speculative financial instruments, eg. asking you to make $20 downpayment to own $100 of HDB bonds (safe) through financing.

3. Maybe, something is going to happen. I read a few articles that advocates a new thinking in bond investment (because something is going to happen) that encourages us to chase this mad bond rally. They are encouraging investors and speculators to dump long-term bonds for short-term ones because the chances of default is much lower for good blue chip short-term bonds:
- Investors will be assured of (higher odds of) redemption within 2-3 years. In the event market crashes, Investors can happily get par value back and switch to equities or properties.
- Speculators can lock-in the cost of financing these short-term bonds with fixed short-term (cheaper) loans to make easy $$$ too.




Therefore the answer: all of the above.
Click to expand...
 
R

Runifyouhaveto

Alfrescian
Loyal
Re: Interesting Bond issues

sochi2014 said:
interests rates going to rise and you want people to buy bonds?
HALLO?
Click to expand...

hi, Bond prices drop when rates are increasing. But if you don't mind, read what i just replied to Dear Leader Krafty again.

Economic Textbook taught us so. but economic textbook makes us more predictable to be trapped by big boys. To understand the invisible hand of the market, we have to unlearn what we learnt.

It is not just investing or speculating blindly in bonds. Econ just teaches us theory, I have even presented to you the answer: just narrow down to short-term bonds issued by premium issuers.
 
Last edited:
R

Runifyouhaveto

Alfrescian
Loyal
Re: Interesting Bond issues

Runifyouhaveto said:
Final pricing: 4.8%
Step-up interests: Every 2 years, callable annually after first-call date 2 years later.
http://infopub.sgx.com/FileOpen/Ann... Securities - Pricing 21 July 2014 final.ashx
Click to expand...

If the perpetuals are not called, the interest rate is reset every 2 years thereafter at the SGD 2-year SOR (swap offer rate) plus initial spread plus step-up margin of 200 basis points. The initial credit spread is 414.8 basis points
http://www.businesstimes.com.sg/breaking-news/singapore/hyflux-perpetuals-priced-480-20140722
 
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