Chitchat Bond investors in Spore be careful

[Runifyouhaveto]

Raffles Education
Founder CEO offload some shares in Nov 2015 and share-prices declined by 30% since then. Recent-acquisition in Europe and US taking toll on balance sheet, haunted by earlier Oriental Century's failure after Lehmen Crisis.

RLSSP 5.900% 03May2018
Last Checked: 13% discount to par
https://www.bondsupermart.com/main/bond-info/bond-factsheet/SG55H0992169

 

[Runifyouhaveto]

Geo Energy Resources
CFO resigned in August.

GERLSP 7.000% 18Jan2018
Last Checked: 25% discount to par
https://www.bondsupermart.com/main/bond-info/bond-factsheet/SG6SA1000006

CFO announced a few hours after this post.
Recruited former Chasen CFO

 

[Runifyouhaveto]

Also must be willing to take the extra steps to actually invest the $
I remember that back when I opened my US trading brokerage account with Etrade they didn't have an office in Spore & you had to do everything via their US office. Getting an internet account with Singnet was also a hassle.

Throughout my working career I got into the habit of always putting something aside to invest $ whether it was for an RRSPs, mutual funds, or stocks. Working for an american MNC made it easier because they offered employees a chance to buy stocks at a discount.

Yes sir, laziness has no cure.

 

[Runifyouhaveto]

"Bondholders were treated very roughly" in recent cases, said Lee Ka Shao, a former hedge fund manager who now runs a family office in Singapore.

"If bondholders are not in the know, they could be easily ran over because there is no platform for them to group and there is no process for going through a fair restructuring."

http://www.businesstimes.com.sg/ban...aire-77-joins-bondholders-uniting-in-workouts


Singapore has real problem that we dare not face.

 

[OrLanChowHorFun]

"Bondholders were treated very roughly" in recent cases, said Lee Ka Shao, a former hedge fund manager who now runs a family office in Singapore.

"If bondholders are not in the know, they could be easily ran over because there is no platform for them to group and there is no process for going through a fair restructuring."

http://www.businesstimes.com.sg/ban...aire-77-joins-bondholders-uniting-in-workouts


Singapore has real problem that we dare not face.

velly velly goooood ah...........PAP voters kena conned..................what's NOT to like.............

 

[Runifyouhaveto]

Update for Swissco
Just announced debt restructuring today.
http://www.businesstimes.com.sg/ban...nk-bonds-slump-as-swissco-seeks-restructuring
The securities were last quoted at 47.5 Singapore cents on the US dollar, according to prices from DBS Bank Ltd.
Last Checked: 52.5% discount to par

 

[Runifyouhaveto]

So far, we discussed about investors of 21 distressed issuers (in billions of dollars) sitting on massive losses.

NOL
IHC
Rickmer
Marco Polo
Pacific Radiance
Ezion
Nam Cheong
Ezra
Deutsche Bank
Trikomsel
Pacific Andes
ASL Marine
Noble
Swiber
Swissco
Ausgroup
Kris Energy
TA Corp
Aspial
Geo Energy Resources
Vallianz Holdings

It is our worst financial crisis since the lehmen crisis.

 

[Runifyouhaveto]

Background:
Perisai is also partially-owned by EMAS Offshore
EMAS Offshore is also partially-owned by Ezra

The put option to sell its 51 per cent stake in SJR Marine will enable Perisai to strengthen their working capital. That is one part of the story.

In another story........at the end of 2015, Ezra bailed out EMAS by paying about US$56million which is appx. 4x premium, for EMAS's 12%+ stake in Perisai. Since then, shareholders punished Ezra sent Ezra's share price crashing down 50% for 2 months.
https://www.fool.sg/2015/12/17/did-ezra-holdings-ltd-just-bail-out-emas-offshore-ltd-from-trouble

Ezra is one of the rare holding companies that sacrificed so much of themselves, to bail out subsidiaries and associate companies.

Update for Ezra's Perisai

More than 70 percent of investors who voted on Monday rejected the company’s proposal to extend the maturity of the bond to Feb. 3, 2017, according to Cheng Fong Kiew, a bondholder present at the meeting.

Over 20 bondholders gathered at the basement of an office tower in Singapore’s central business district to vote on the plan to prolong maturity of its S$125 million ($91.6 million), 6.875 percent bond due today. Bond investors last week demanded immediate repayment after talks with the company collapsed.

“Yes, it’s our responsibility that we bought the bonds but the company can’t just brush us aside,” said Cheng, who owns S$500,000 of Perisai bonds. “Trust has been eroded.”
http://www.bloomberg.com/news/artic...-reject-oil-rig-contractor-restructuring-plan

 

[Runifyouhaveto]

There is a lot of con jobs or unfair practices against small investors in our local financial market. When you try to seek redress from MAS, MOF or even the Minister, they will probably tell you that these are commercial matters, they cannot intervene.

RUN wrote to 2 ministers and regulatory authorities about his grievances.

Now, some people shared with ah RUN, that they received the same reply from our regulatory authorities regarding the recent bond rough-handlings.
They probably used the same reply template.

 

[Runifyouhaveto]

Noble Group

IE Singapore is very reluctant to see them collapse but I think only COFCO can save them

Noble top-volume today as we speak.

Who will be the white knight

Scaling new heights today.

 

[Runifyouhaveto]

No liquidity in our financial system now

Singapore private home prices fall most in seven years in Q3
http://in.reuters.com/article/singapore-economy-property-idINKCN1230DJ

 

[johnny333]

No liquidity in our financial system now

Singapore private home prices fall most in seven years in Q3
http://in.reuters.com/article/singapore-economy-property-idINKCN1230DJ

With so many people being laid off in Spore I doubt there are people who would risk buying a landed pte property.

Private properties is also more suitable for larger families & not for an aging population or for singles. You'll need a maid to clean a large home.

 

[Runifyouhaveto]

Case Study: Highly-Geared Companies

Perennial Real Estate Holdings Limited - Singapore-dollar loans funding Chinese assets
https://www.fool.sg/2016/09/28/3-th...about-perennial-real-estate-holdings-limited/

Hyflux - Singapore-dollar loans funding $3.6billion order book
https://secure.fundsupermart.com/main/bond/article/Hyflux-Ltd-Better-times-ahead--11505

Deutsche bank just hinted at capital raising. DB share price went up by 15% since hitting new lows. The ability to raise capital is a mark of confidence.

All local bond issuers in Singapore, of a few hundred million of market cap, should also embark on a rights issue to raise at least 100-200mio to strengthen their balance sheets, especially Perennial, Hyflux & REITs. They have a decent business model but if their market cap sinks further, it will be impossible to raise a decent amount of capital to reduce expose to the debt market. These companies can be winners when the liquidity crisis is over.

 

[Runifyouhaveto]

And having huge amount of position in precious metals.

Not true sir, gold and silver just crashed this week.

Compared to twenty years ago, gold and silver are very highly leveraged now. Today, people can easily bet them using futures or margin accounts. When the leverage unwinds or cost of financing increases , it is inevitable to experience selling pressure like shares or properties.

 

[zeebjii]

Not true sir, gold and silver just crashed this week.

Compared to twenty years ago, gold and silver are very highly leveraged now. Today, people can easily bet them using futures or margin accounts. When the leverage unwinds or cost of financing increases , it is inevitable to experience selling pressure like shares or properties.

in current climate, only physical gold and silver are good enough.

 

[Runifyouhaveto]

in current climate, only physical gold and silver are good enough.

If you had tried to offload physical precious metals in Singapore, especially silver,
You will vomit blood. The street spread for physical silver buy-sell price is a usually whopping 8-16% spread on normal days. Paper silver will give you a much more narrow spread.

For gold, keeping physical is fine if you strictly choose sealed bar. The spread is very narrow on peaceful days. Once the seal is broken, the spread can be 5-12%. It is worse on less peaceful days like the case study below.

When the Genneva gold scam collapse, my friend was affected. The investors were holding genuine sealed gold bars but my friend was offered 16% discount from spot price, at a listed pawn shop in Singapore because of the oversupply (to cash out) due to the Genneva Gold scam.

Don't get me wrong, I am not saying gold and silver are bad investment. Just avoid physical in Singapore. If you just $$$ itchy wanting to diversify, then buy physical and keep in your safes or depositories.

 

[Runifyouhaveto]

Scaling new heights today.

Share continued to rocket, Noble Bonds trending 3% since this thread begun.

 

[Runifyouhaveto]

Deutsche bank just hinted at capital raising. DB share price went up by 15% since hitting new lows. The ability to raise capital is a mark of confidence.

All local bond issuers in Singapore, of a few hundred million of market cap, should also embark on a rights issue to raise at least 100-200mio to strengthen their balance sheets, especially Perennial, Hyflux & REITs. They have a decent business model but if their market cap sinks further, it will be impossible to raise a decent amount of capital to reduce expose to the debt market. These companies can be winners when the liquidity crisis is over.

Hyflux shares sank about 5-7% since this thread began.

Weakness will only be over if they improve their balance sheet (eg, place out shares or issue rights) because they are doing too much business (almost $3.6 billion) with a small market cap (about 1/10 of their order book).

 

[Runifyouhaveto]

Swissco joins debt restructuring frenzy
http://www.straitstimes.com/business/swissco-joins-debt-restructuring-frenzy

A meeting with bond holders will be held on Monday. The 5.7 per cent bonds only mature in 2018 and Swissco has not said that it cannot pay its next coupon.

 

[Runifyouhaveto]

Thank you for sharing brother Johnny.

The biggest (bond) news today is the offering of 7% Perpetual Bond from Lippo Reits (5 years).

There are two issues in local bond market now:
- Collapse of issuers (default or bankrupt)
- Lack of liquidity

Lippo probably forced to offer the highest yield in local SGD Bond market among REITS because of vanishing liquidity.

Latest: Lippo Group mulls moving Singapore-listed REITs to Indonesia
http://sbr.com.sg/commercial-proper...mulls-moving-singapore-listed-reits-indonesia