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Singapore Bonds
- Thread starter Runifyouhaveto
- Start date
Re: Interesting Bond issues
Hyflux's 6% retail-tranche educated the public about the opportunities offered by preference shares. Ms Lum is also a very respected CEO; by being a substantial shareholder, she choose to peg her wealth to the company's share price, and draws a modest salary compared to her peers.
Hyflux's 6% retail-tranche educated the public about the opportunities offered by preference shares. Ms Lum is also a very respected CEO; by being a substantial shareholder, she choose to peg her wealth to the company's share price, and draws a modest salary compared to her peers.
Re: Interesting Bond issues
Jasper warns of potential default of US$165m senior bonds
THE board of Jasper Investments Limited yesterday warned of the potential breach of financial obligations under the five-year US$165 million senior secured bonds issued by its subsidiary Jasper Explorer plc.
Jasper Explorer - whose vessel has not generated any revenue since coming off-hire at the end of February - had asked for a waiver of the maintenance of a minimum liquidity by Jasper Offshore (Cyprus) Ltd and its subsidiaries of at least US$10 million, and for the extension of the due date of the payment to the bondholders of an aggregate US$11.1 million in interest, due Nov 27.
http://www.businesstimes.com.sg/pre...otential-default-us165m-senior-bonds-20140823
Jasper warns of potential default of US$165m senior bonds
THE board of Jasper Investments Limited yesterday warned of the potential breach of financial obligations under the five-year US$165 million senior secured bonds issued by its subsidiary Jasper Explorer plc.
Jasper Explorer - whose vessel has not generated any revenue since coming off-hire at the end of February - had asked for a waiver of the maintenance of a minimum liquidity by Jasper Offshore (Cyprus) Ltd and its subsidiaries of at least US$10 million, and for the extension of the due date of the payment to the bondholders of an aggregate US$11.1 million in interest, due Nov 27.
http://www.businesstimes.com.sg/pre...otential-default-us165m-senior-bonds-20140823
Re: Interesting Bond issues
Singapore inflation eases to 1.2% in July
http://www.businesstimes.com.sg/breaking-news/singapore/singapore-inflation-eases-12-july-20140825
CONSUMER price inflation in Singapore eased more than expected to 1.2 per cent in July from 1.8 per cent in June, mainly on account of lower private road transport costs due to a high base a year ago.
The median forecast of 21 economists polled by Bloomberg before the Department of Statistics released the data on Monday was for a 1.8 per cent year-on-year rise in the consumer price index (CPI).
Private road transport costs fell by 1.6 per cent in July from June's 2.8 per cent increase. The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in joint comments that this mainly reflects the high base last year when COE premiums surged.
Petrol pump prices also rose at a slower pace of 3.1 per cent, compared to 6.4 per cent a month ago.
Given the soft housing rental market, accommodation costs were largely unchanged, after inching up by 0.5 per cent in June.
Food inflation eased as well in July to 3 per cent from June's 3.2 per cent, due to a more moderate rise in the prices of non-cooked food items and prepared meals.
But services inflation was higher at 2.5 per cent, compared to 2.2 per cent in June. This was led by stronger increases in pre-school fees, medical treatment cost and holiday travel expenses.
This pick-up in services inflation meant that core inflation - which excludes accommodation and private road transport costs - edged up to 2.2 per cent in July from 2.1 per cent a month ago.
MAS and MTI said that headline inflation is projected to come in at 1.5-2.0 per cent in 2014, while core inflation will "stay elevated" at 2-3 per cent in 2014.
Singapore inflation eases to 1.2% in July
http://www.businesstimes.com.sg/breaking-news/singapore/singapore-inflation-eases-12-july-20140825
CONSUMER price inflation in Singapore eased more than expected to 1.2 per cent in July from 1.8 per cent in June, mainly on account of lower private road transport costs due to a high base a year ago.
The median forecast of 21 economists polled by Bloomberg before the Department of Statistics released the data on Monday was for a 1.8 per cent year-on-year rise in the consumer price index (CPI).
Private road transport costs fell by 1.6 per cent in July from June's 2.8 per cent increase. The Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry (MTI) said in joint comments that this mainly reflects the high base last year when COE premiums surged.
Petrol pump prices also rose at a slower pace of 3.1 per cent, compared to 6.4 per cent a month ago.
Given the soft housing rental market, accommodation costs were largely unchanged, after inching up by 0.5 per cent in June.
Food inflation eased as well in July to 3 per cent from June's 3.2 per cent, due to a more moderate rise in the prices of non-cooked food items and prepared meals.
But services inflation was higher at 2.5 per cent, compared to 2.2 per cent in June. This was led by stronger increases in pre-school fees, medical treatment cost and holiday travel expenses.
This pick-up in services inflation meant that core inflation - which excludes accommodation and private road transport costs - edged up to 2.2 per cent in July from 2.1 per cent a month ago.
MAS and MTI said that headline inflation is projected to come in at 1.5-2.0 per cent in 2014, while core inflation will "stay elevated" at 2-3 per cent in 2014.
Re: Interesting Bond issues
Osim shares fall on news of $200m bond issue
http://business.asiaone.com/print/news/osim-shares-fall-news-200m-bond-issue
Shares in lifestyle products company Osim International fell yesterday after the company announced its latest issuance of convertible bonds.
The stock closed down eight cents or 2.8 per cent to $2.74, which was also its intra-day high. At one point, it was down by as much as 18 cents or 6.4 per cent to $2.64.
Osim announced on Tuesday that it was planning to issue up to $200 million in five-year convertible bonds, which include an upsize option of $50 million.
It said yesterday that the bonds were fully placed to institutional and accredited investors, who took up $170 million in the aggregate principal amount with an upsize option of $30 million.
The bonds due in 2019 will not bear interest and have a conversion price of $3.525 per share.
The final price lies at the lower end of the initial indicative conversion range of between $3.525 and $3.737.
Osim said on Tuesday that it intends to use the net proceeds to boost its well-being and lifestyle business in Asia.
The company could also use it to finance potential acquisitions.
That the money could be used for acquisitions may have put some investors off, as they are still spooked by Osim's investment in United States retailer Brookstone that eventually went bust.
Osim, together with Temasek Holdings and US buyout firm JW Childs Associates, bought Brookstone for US$456 million (S$569 million) in 2005.
Brokerage OSK-DMG, however, is upbeat about Osim's latest move. Analysts James Koh and Juliana Cai noted yesterday that the terms are very favourable and is a relatively cheap source of funding for the company.
They added that the money raised will buff up Osim's cash holdings to around $450 million, putting it in a strong position to capitalise on merger and acquisition (M&A) opportunities.
"We do not think an M&A deal is immediately imminent, as management remains patient on valuations," they added.
"Osim has proven its ability to grow businesses in Asia and we think any M&As ought to provide yet another engine of growth in the long term."
HSBC is the sole bookrunner and sole lead manager for the issue.
Osim shares fall on news of $200m bond issue
http://business.asiaone.com/print/news/osim-shares-fall-news-200m-bond-issue
Shares in lifestyle products company Osim International fell yesterday after the company announced its latest issuance of convertible bonds.
The stock closed down eight cents or 2.8 per cent to $2.74, which was also its intra-day high. At one point, it was down by as much as 18 cents or 6.4 per cent to $2.64.
Osim announced on Tuesday that it was planning to issue up to $200 million in five-year convertible bonds, which include an upsize option of $50 million.
It said yesterday that the bonds were fully placed to institutional and accredited investors, who took up $170 million in the aggregate principal amount with an upsize option of $30 million.
The bonds due in 2019 will not bear interest and have a conversion price of $3.525 per share.
The final price lies at the lower end of the initial indicative conversion range of between $3.525 and $3.737.
Osim said on Tuesday that it intends to use the net proceeds to boost its well-being and lifestyle business in Asia.
The company could also use it to finance potential acquisitions.
That the money could be used for acquisitions may have put some investors off, as they are still spooked by Osim's investment in United States retailer Brookstone that eventually went bust.
Osim, together with Temasek Holdings and US buyout firm JW Childs Associates, bought Brookstone for US$456 million (S$569 million) in 2005.
Brokerage OSK-DMG, however, is upbeat about Osim's latest move. Analysts James Koh and Juliana Cai noted yesterday that the terms are very favourable and is a relatively cheap source of funding for the company.
They added that the money raised will buff up Osim's cash holdings to around $450 million, putting it in a strong position to capitalise on merger and acquisition (M&A) opportunities.
"We do not think an M&A deal is immediately imminent, as management remains patient on valuations," they added.
"Osim has proven its ability to grow businesses in Asia and we think any M&As ought to provide yet another engine of growth in the long term."
HSBC is the sole bookrunner and sole lead manager for the issue.
Re: Interesting Bond issues
We have more information now. If i interprete correctly, it sounds like the China banks are going to issue Coco Bonds.
"Bank of China is expected to be the first PRC lender to come to market. The bank has shortlisted eight banks, including top choice Bank of China International, for an offshore AT1 of up to $US6.5bn. ICBC, expected to be second to market, has mandated seven banks for its transaction.
Agricultural Bank of China was mandating banks for a similar deal, market sources said, but there were no details yet on offerings from either China Construction Bank or Bank of Communications.
Under Basel III rules, AT1 capital is undated and loss absorbing, and can be written down or converted to equity when a bank's common equity Tier 1 ratio drops below 5.125%. AT1 holders may also face the risk of coupon or dividend deferral."
http://www.reuters.com/article/2014/08/29/emergingmarkets-bonds-idUSL3N0QZ3LP20140829
This sounds like Coco Bonds. Deutsche Bank issued Coco bonds for 6.25-7.5% and I feel that such bonds are very high risk, given the way they structured. It is more dangerous than the mainstream bank preference shares that we have here.
http://sammyboy.com/showthread.php?181997-Singapore-Bonds&p=1884370#post1884370
Please avoid Coco bonds. You'd might as well buy ordinary shares.
We have more information now. If i interprete correctly, it sounds like the China banks are going to issue Coco Bonds.
"Bank of China is expected to be the first PRC lender to come to market. The bank has shortlisted eight banks, including top choice Bank of China International, for an offshore AT1 of up to $US6.5bn. ICBC, expected to be second to market, has mandated seven banks for its transaction.
Agricultural Bank of China was mandating banks for a similar deal, market sources said, but there were no details yet on offerings from either China Construction Bank or Bank of Communications.
Under Basel III rules, AT1 capital is undated and loss absorbing, and can be written down or converted to equity when a bank's common equity Tier 1 ratio drops below 5.125%. AT1 holders may also face the risk of coupon or dividend deferral."
http://www.reuters.com/article/2014/08/29/emergingmarkets-bonds-idUSL3N0QZ3LP20140829
This sounds like Coco Bonds. Deutsche Bank issued Coco bonds for 6.25-7.5% and I feel that such bonds are very high risk, given the way they structured. It is more dangerous than the mainstream bank preference shares that we have here.
http://sammyboy.com/showthread.php?181997-Singapore-Bonds&p=1884370#post1884370
Please avoid Coco bonds. You'd might as well buy ordinary shares.
Garuda Indonesia might be issuing SGD bonds in secondary market soon
http://www.ifrasia.com/unrated-firms-target-singapore/21162009.article
http://www.ifrasia.com/unrated-firms-target-singapore/21162009.article
Re: Interesting Bond issues
First question: It is about owning OCBC, you can hold OCBC for short-term.
Second question: You can sell the rights if you don't want to fork out money.
Third question: if you love banking counters so much, you can do a switch to hold them in UOB. At least UOB will not have massive write-offs for Wing Hang + potential mainland doubtful-debts in the next 3-5 years.
Conclusion:
If you love banking counters for LONG TERM, just switch to UOB.
If you love banking counters for short-term, OCBC is fine.
First question: It is about owning OCBC, you can hold OCBC for short-term.
Second question: You can sell the rights if you don't want to fork out money.
Third question: if you love banking counters so much, you can do a switch to hold them in UOB. At least UOB will not have massive write-offs for Wing Hang + potential mainland doubtful-debts in the next 3-5 years.
Conclusion:
If you love banking counters for LONG TERM, just switch to UOB.
If you love banking counters for short-term, OCBC is fine.
Re: Interesting Bond issues
O. Too much rubbish share now. I think I will just sell 1 sept.
Mother share want to sell mah? My 5 lot entry px 9.65.
O. Too much rubbish share now. I think I will just sell 1 sept.
Mother share want to sell mah? My 5 lot entry px 9.65.
Re: Interesting Bond issues
if you sell = sell rights + mama shares
if you wanna keep = continue to own bank shares = switch to UOB for better long term stability.
if you sell = sell rights + mama shares
if you wanna keep = continue to own bank shares = switch to UOB for better long term stability.
Re: Interesting Bond issues
Sorry, RUN never owned a single bank share in his life. You'd probably know a better time to enter than me.
I believe UOB is widely covered by ANALysts and brokerage-calls. You can also read up more from them.
Sorry, RUN never owned a single bank share in his life. You'd probably know a better time to enter than me.
I believe UOB is widely covered by ANALysts and brokerage-calls. You can also read up more from them.
Re: Interesting Bond issues
4 Reasons Why Investors Should Be Careful With Bonds
https://sg.finance.yahoo.com/news/4-reasons-why-investors-careful-155439985.html
At the beginning of the year, almost every expert who made a prediction on the bond market had a negative outlook. It seemed like a no-brainer at the time. The U.S. economy was on the mend, which meant the Federal Reserve would continue to taper its asset purchase program, and then eventually raise interest rates.
However, despite the fact the economy has shown improvement this year, despite the weather-related first quarter gross domestic product report, and the Fed indeed tapering its asset purchase program, interest rates have dropped and bonds have performed well.
So, what's going on? The answer to why bonds have actually rallied this year, rather than declined, as many predicted, is interesting. Furthermore, bond bears shouldn't back down from their bond predictions. Based on what's happening, I believe the fundamental case for bonds having a poor long-term forecast has only strengthened.
1. Who are the bond buyers? At the end of the day, asset prices move higher when investors demand an investment in excess of what is supplied. One commonly overlooked characteristic of today's U.S. Treasury market is that there has actually been an incremental decline in the supply of U.S. government debt this year, due to lower deficits. Additionally, the demand for U.S. Treasuries is rising higher, even as the Fed tapers its purchases. Last year, after the Fed announced its intentions to buy fewer U.S. bonds, the currencies of many countries declined quickly and severely.
For many nations, a lower currency isn't desirable and has negative implications for their economy. In order to combat this occurrence, foreign nations have opted to intervene by purchasing large amounts of U.S. debt, which helps suppress the rise of interest rates, and in effect the borrowing costs of those nations. Also, as interest rates plummet to rock bottom levels in other developed countries, U.S. yields have become relatively attractive. This led to a large increase in the purchases of U.S. government bonds from institutional investors and governments around the world.
However, investors should heed caution, because private or government purchases or sales of U.S. debt can change direction quickly and without notice. Although U.S. Treasuries have found a substitute buyer to replace the Fed, these new buyers will likely be far less dependable and predictable. In effect, the quality of buyers in the market for bonds has declined considerably this year.
2. Inflation won't stay low. So far in 2014, the U.S. economy has had a perfect Goldilocks combination of improved growth without much inflation. This has helped keep interest rates low as the Fed remains accommodating with its monetary policy. However, if we're assuming the U.S. economy continues to improve, inflation is inevitable. Most of the reason why we haven't seen inflation is stagnant wage growth.
However, as the slack in the labor market disappears, we will eventually see wages rise. We've already started to hear about employers across the country having difficulty finding quality workers at the wages they're offering. Although predicting exactly when wage inflation will pick up is impossible, it's difficult to envision an environment where wage growth remains suppressed as economic growth continues to accelerate.
3. The Fed's reaction. Once inflation begins to rise, there won't be any additional rationale for why the Fed would keep interest rates at record lows. Furthermore, if inflation becomes too high, you could even begin to see the Fed start to unload its massive balance sheet. Sure, the Fed has stated it could hold all of the $4 trillion worth of assets it accumulated to maturity.
However, should inflation reverse and become a problem, it would absolutely be an option for the Fed to begin exiting some of assets it currently holds. Though I don't think this is a probable outcome, bond yields seem to be pricing in a zero percent chance of this happening. I believe bond investors are being a bit complacent in this regard, and could be underestimating how the Fed would react should we experience an unexpected elevation of inflation.
Granted, a buy-and-hold bond investor can stomach price volatility as long as they're confident the bond issuer will return the entire principal at maturity. But with the 10-year Treasury yielding a mere 2.4 percent, it won't take much inflation to erode away that minuscule return.
4. Everyone else's reaction. Like anything else in finance, momentum matters. Right now, the momentum is positive for bond investments. For all the reasons we've mentioned, bonds have been a rewarding place to invest for many years. However, should bonds begin posting negative returns, it's likely you'll begin to see active money managers react to the unattractive performance by reducing or exiting their positions. As we've witnessed before on countless occasions, the pendulum can swing quite drastically in the wrong direction for a considerable period of time.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth may not develop as predicted. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
Brett Carson , CFA, is the director of research for Carson Institutional Alliance where, as portfolio manager, he is directly responsible for managing several strategies, including perennial growth, long-term trend and write income. Additionally, the Omaha-based research department conducts thorough analyses of companies to identify undervalued stocks that carry attractive upside potential.
Investment advice offered through CWM, LLC, a Registered Investment Advisor. Securities offered through LPL Financial, Member FINRA/SIPC. LPL Financial is a separately owned entity from all other entities.
4 Reasons Why Investors Should Be Careful With Bonds
https://sg.finance.yahoo.com/news/4-reasons-why-investors-careful-155439985.html
At the beginning of the year, almost every expert who made a prediction on the bond market had a negative outlook. It seemed like a no-brainer at the time. The U.S. economy was on the mend, which meant the Federal Reserve would continue to taper its asset purchase program, and then eventually raise interest rates.
However, despite the fact the economy has shown improvement this year, despite the weather-related first quarter gross domestic product report, and the Fed indeed tapering its asset purchase program, interest rates have dropped and bonds have performed well.
So, what's going on? The answer to why bonds have actually rallied this year, rather than declined, as many predicted, is interesting. Furthermore, bond bears shouldn't back down from their bond predictions. Based on what's happening, I believe the fundamental case for bonds having a poor long-term forecast has only strengthened.
1. Who are the bond buyers? At the end of the day, asset prices move higher when investors demand an investment in excess of what is supplied. One commonly overlooked characteristic of today's U.S. Treasury market is that there has actually been an incremental decline in the supply of U.S. government debt this year, due to lower deficits. Additionally, the demand for U.S. Treasuries is rising higher, even as the Fed tapers its purchases. Last year, after the Fed announced its intentions to buy fewer U.S. bonds, the currencies of many countries declined quickly and severely.
For many nations, a lower currency isn't desirable and has negative implications for their economy. In order to combat this occurrence, foreign nations have opted to intervene by purchasing large amounts of U.S. debt, which helps suppress the rise of interest rates, and in effect the borrowing costs of those nations. Also, as interest rates plummet to rock bottom levels in other developed countries, U.S. yields have become relatively attractive. This led to a large increase in the purchases of U.S. government bonds from institutional investors and governments around the world.
However, investors should heed caution, because private or government purchases or sales of U.S. debt can change direction quickly and without notice. Although U.S. Treasuries have found a substitute buyer to replace the Fed, these new buyers will likely be far less dependable and predictable. In effect, the quality of buyers in the market for bonds has declined considerably this year.
2. Inflation won't stay low. So far in 2014, the U.S. economy has had a perfect Goldilocks combination of improved growth without much inflation. This has helped keep interest rates low as the Fed remains accommodating with its monetary policy. However, if we're assuming the U.S. economy continues to improve, inflation is inevitable. Most of the reason why we haven't seen inflation is stagnant wage growth.
However, as the slack in the labor market disappears, we will eventually see wages rise. We've already started to hear about employers across the country having difficulty finding quality workers at the wages they're offering. Although predicting exactly when wage inflation will pick up is impossible, it's difficult to envision an environment where wage growth remains suppressed as economic growth continues to accelerate.
3. The Fed's reaction. Once inflation begins to rise, there won't be any additional rationale for why the Fed would keep interest rates at record lows. Furthermore, if inflation becomes too high, you could even begin to see the Fed start to unload its massive balance sheet. Sure, the Fed has stated it could hold all of the $4 trillion worth of assets it accumulated to maturity.
However, should inflation reverse and become a problem, it would absolutely be an option for the Fed to begin exiting some of assets it currently holds. Though I don't think this is a probable outcome, bond yields seem to be pricing in a zero percent chance of this happening. I believe bond investors are being a bit complacent in this regard, and could be underestimating how the Fed would react should we experience an unexpected elevation of inflation.
Granted, a buy-and-hold bond investor can stomach price volatility as long as they're confident the bond issuer will return the entire principal at maturity. But with the 10-year Treasury yielding a mere 2.4 percent, it won't take much inflation to erode away that minuscule return.
4. Everyone else's reaction. Like anything else in finance, momentum matters. Right now, the momentum is positive for bond investments. For all the reasons we've mentioned, bonds have been a rewarding place to invest for many years. However, should bonds begin posting negative returns, it's likely you'll begin to see active money managers react to the unattractive performance by reducing or exiting their positions. As we've witnessed before on countless occasions, the pendulum can swing quite drastically in the wrong direction for a considerable period of time.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. The economic forecasts set forth may not develop as predicted. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.
Brett Carson , CFA, is the director of research for Carson Institutional Alliance where, as portfolio manager, he is directly responsible for managing several strategies, including perennial growth, long-term trend and write income. Additionally, the Omaha-based research department conducts thorough analyses of companies to identify undervalued stocks that carry attractive upside potential.
Investment advice offered through CWM, LLC, a Registered Investment Advisor. Securities offered through LPL Financial, Member FINRA/SIPC. LPL Financial is a separately owned entity from all other entities.
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