Singapore Bonds

[Runifyouhaveto]

Re: Interesting Bond issues

Bro run, what you think of the Aspiral 5-year Bond at 5.25% interest? You think it will be over subscribed?

I am seriously thinking of bidding at least $50K.

Good brother, here's my 2 cents

Part 1: Allocation
http://www.straitstimes.com/busines...ent-tranche-to-50m-cuts-public-tranche-to-25m
ASP a bit shocked the secondary market when they doubled the private-placement and half the retail-placement (ATMs applications). For a reasonably priced bond, usually, RMs or Dealers will encourage their customers to apply a bit more than they want so that they can get good allocation size but not expect to get full allocation. ASP disrupted this good industry practice and absorbed all of what the private-placement applied. This hinted that either:
- they need the money OR
- they will upsize the whole bond placement, leaving little room for small capital gains OR
- they are less confident about retail interest.

Part 2: Company
Please check their accounts, they have already issued hundreds of millions of bonds. If you include this latest issue, outstanding bond is almost the same as their market cap when the bond starts trading. Then, they will be using a lot of their gross profit to pay interest-expense, going forward.

Part 3: Value
The bond was trading in private placement (grey market) now at 100.03 (almost par) on Friday. It means it is just fairly-priced but not exciting. If you take clue from the last retail bond from FCL, FCL has collapsed to below par if you consider the accrued interest. The last done price on Friday was 1.003 (including accrued interest, excluding comission). Genting 5.125% retail bond also collapsed to almost close to par (including appx 4-months of accrued interest), last done 1.023.

The good thing about this bond is that it is in small denominations, many can nibble a bit. Personally, I will vote for genting, at least judging from history, I know genting always issue rights to shareholders when they need any money (including to pay off debts or expansion). hahaha, sorry about this silly comment, genting shareholders.



Disclaimer: Just simple comparisons. RUN don't own Asp, FCL, Genting shares or bonds.
Please reconfirm with your financial advisor, ah RUN has no degree or training in this area.

 

[dancingshoes]

Re: Interesting Bond issues

Disclaimer: Just simple comparisons. RUN don't own Asp, FCL, Genting shares or bonds.
Please reconfirm with your financial advisor, ah RUN has no degree or training in this area.

did you do a degree in finance related discipline?

 

[Runifyouhaveto]

did you do a degree in finance related discipline?

Dshoes bro,
No degree, RUN no go uni
You see my england in this forum, u can tell.

If got, maybe i would get to hold the hands of a few more good girls.

Too late liao, 回不去了

 

[dancingshoes]

Dshoes bro,
No degree, RUN no go uni
You see my england in this forum, u can tell.

If got, maybe i would get to hold the hands of a few more good girls.

Too late liao, 回不去了

good bro, such a waste of talent. i can sense that you possess certain depth maybe due to past bad experiences. but a degree is no certain path to success anyway, i am an Honours grad in EEE but end up doing trading and running some small biz.

 

[Runifyouhaveto]

i am an Honours grad in EEE but end up doing trading and running some small biz.

LOL still better than me right

Have a good weekend

 

[dancingshoes]

LOL still better than me right

Have a good weekend

not really better...

 

[Runifyouhaveto]

not really better...

No true. ah RUN confirms that you bedded a lot more girls than him.
If not, i chop. hahahhaa

 

[eErotica69]

Thanks bro Run.

 

[Runifyouhaveto]

Thanks bro Run.

Welcome, thread carefully bro,
our world will change after GE. See this when u free
http://sammyboy.com/showthread.php?212383-Singapore-After-The-Next-Election

Take care.

 

[dancingshoes]

No true. ah RUN confirms that you bedded a lot more girls than him.
If not, i chop. hahahhaa

this is nothing worth mentioning. i am more concerned about making more money nowadays. hope that with your valuable insight, can help me. many thanks.

 

[Runifyouhaveto]

Comparisons:

OCBC Max.4% - Renowned local bank
Giti Tire 6% - Major Tire manufacturer in Indonesia and China, opening US factory
FCL 3.65%- Property giant owned by Thai tycoon Charoen with significant interest in expanding Australian business


OCBC
Yield: Max 4% (to be confirmed)
Duration - Non-Callable 5 years, Perpetual
Bond Denominations - 250K

Giti Tire 6%
Yield: 6%
Duration - 3 Years (appx. 27 more months), Non-perpetual
Bond Denominations - 250K

FCL 3.65%
Yield: 6%
Duration - 7 Years (appx. 80 more months), Non-perpetual
Bond Denominations - Retail-size (small)

The new OCBC 3.8% perp bonds tanked below 100
The coupon is too low, not providing adequate safety buffer in a raising SIBOR environment. In the first page of this thread, we also discussed Apple (another safe issuer) bond holders facing paper losses as tw coupons are too low

 

[Runifyouhaveto]

Singapore junk bond market lacks depth, say money managers
http://www.straitstimes.com/busines...nk-bond-market-lacks-depth-say-money-managers

"High-yield bonds in particular are suffering from lack of price discovery,"said Mr Vishal Goenka, head of local currency credit at Deutsche Bank in Singapore. "Dealers are providing little liquidity and it seems that investors are under pressure from possible retail margin calls on their portfolios."

The amount of local bonds with coupons higher than 6 per cent increased to a record $3.5 billion last year in Singapore, where most debt is unrated and such notes are considered high-yield.




The article reflects the contents in the previous 2 pages of this thread. This is a very good time to buy. Should be more attractive than REITs.

- Good reputed issuers
Avoid dangerous companies, eg. Oil & Gas, although their yields are like 15 to 20%pa.

- Shorter term (<3 years) bonds
Please play safe. In case, there's a market meltdown, so long the issuer is not bankrupt, you still get back your par value. Shorter-duration bond prices are usually less volatile too.

- look at 6-8% yield
Aim slightly higher risk but not 10%pa. Still low insolvent risk, and higher yield an insurance against higher SIBOR and SOR, going forward. Even ultra-safe OCBC 3.8% dropped below 100 this year because the yields are too low for a long duration bank AT1 bond.

 

[Runifyouhaveto]

Hello nice people, this is ah RUN's short n sweet introduction to the topic

WHO SHOULD INVEST IN SINGAPORE SAVINGS BONDS?

PART 1/2: Please skip if you know what is SSB
3 Basic Concepts:
- No min. duration and up to 10 years with step-up interests (the yields increase if you can hold longer)
- You can give up anytime and 100% money back
- You will subscribe to new issues every month, subjected to allocation. (yields might be different)

Yields of the first issue according to http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx

First Year: 0.96%pa
If you give up after first year: Cumulative Average = 0.96%pa

Second Year: 1.09%pa
If you give up after second year: Cumulative Average = 1.02%pa

Third Year: 1.93%pa
If you give up after third year: Cumulative Average = 1.32%pa

Fourth Year: 2.93%pa
If you give up after fourth year: Cumulative Average = 1.71%pa
:
:
:
:
Tenth Year: 3.70%pa
If you give up after tenth year (FINAL MATURITY) : Cumulative Average = 2.63%pa





Part 2/2: Who needs it?
Assumption 1: Only ultra-safe fixed-income instruments considered.
Assumption 2: Yields comparison based on SSB's first issue and current market situation.

Group 1: Normal People
Our bank fixed deposits are insured for up to $50K so we assume them to be very safe. Currently, 1YR-Fixed Deposits give about 1.7%pa to 1.9%pa. The yield is almost as good as the cumulative returns for 4-years SSB.

Group 2: Rich People who knows clearly on how long they can park their money.
Earlier, I shared about ultra-safe bonds in the secondary market which are backed by a "Credit Guarantee and Investment Facility (CGIF)" from Asian Development Bank. It is like a bond jointly-guaranteed by ASEAN + CHINA AND KOREA to compensate you within 1-2 in the event of any default. It gives about 3.25%pa. The yield is better than the cumulative returns for 10-years SSB if you can spare $250000 for a lot of such bonds and knowing that you can lock in the money for a specific period of time.

Group 3: Rich People who are unsure about how long they can park their money.
At this moment, such people hides their spare cash in short-term fixed deposits or interest-yielding current accounts such as CIMB Starsavers which gives about 0.8%pa. The yield is not as good as SSB beyond 12-months.


Summary:
Normal People don't need it
Rich who are sure about how long they can put aside spare cash, don't need it.
Rich who are not sure about how long they can park the money will love it.

Of course, normal people can still consider to subscribe for SSB if they assume that interest rates will big drop, going forward
nothing wrong also.

 

[bart12]

Aspial Corp's latest bond offering (ASPSP 5.250% 28Aug2020 Corp (SGD)) of 5.25% SGD-denominated bonds (maturing on 28 August 2020) has started trading today on the secondary market. The bonds are currently off to a strong start, with current indicative prices at around 101.70/101.80 (4.86%/4.84% YTM) while the day's range has been between 101.00 and 102.00, a possible indication of the strong pent-up demand for higher-yielding bonds in the retail SGD bond market.
Strong orders from retail investors

Highlighting this pent-up demand for yield were the strong orders received for the issue, the first retail SGD bond to be issued since Frasers Centrepoint's 7-year 3.65% bonds in May (see 3 Things To Know About Frasers Centrepoint's Retail Bond Issue [22 May 2015]). While Aspial Corp originally sought to raise S$75m in two tranches (S$25m placement tranche, S$50m retail tranche), the strong orders for the institutional "placement" tranche saw that tranche's size expanded to S$50m. For the remaining S$25m retail tranche, Aspial saw S$217.3m of applications (8.7x subscribed) – Aspial eventually expanded the retail tranche to S$100m, raising a total of S$150m in the process.
First SGD High Yield Retail Bond?

As we guided previously (Aspial Corp: 5 Things to Know About Singapore's First "High Yield" SGD Retail Bonds), Aspial Corp's latest retail bond offering (ASPSP 5.250% 28Aug2020 Corp (SGD)) represents what is possibly Singapore's first SGD high yield retail bond, offering investors a fairly high yield but also entailing higher credit risk. Investors who are comfortable with the higher risks associated with the Aspial retail bond can now invest in the bonds with a minimum investment piece size of S$1,000. As highlighted previously, this represents the minimum nominal value of a bond piece, and should the bonds trade above par (as they currently are), investors will need to fork out slightly more than S$1,000 for the minimum investment amount in the bond.

The Research Team is part of iFAST Financial Pte Ltd.

 

[MovieStar]

STI etf better or SSB better?

 

[Runifyouhaveto]

STI etf better or SSB better?

For buying equities (STI ETF), decide after October.
There are $12 rumours going around for our banks in 2016.

For SSB, please see which category u belong to, according to reply #653

 

[Runifyouhaveto]

Aspial Corp's latest bond offering (ASPSP 5.250% 28Aug2020 Corp (SGD)) of 5.25% SGD-denominated bonds (maturing on 28 August 2020) has started trading today on the secondary market. The bonds are currently off to a strong start, with current indicative prices at around 101.70/101.80 (4.86%/4.84% YTM) while the day's range has been between 101.00 and 102.00, a possible indication of the strong pent-up demand for higher-yielding bonds in the retail SGD bond market.
Strong orders from retail investors

Highlighting this pent-up demand for yield were the strong orders received for the issue, the first retail SGD bond to be issued since Frasers Centrepoint's 7-year 3.65% bonds in May (see 3 Things To Know About Frasers Centrepoint's Retail Bond Issue [22 May 2015]). While Aspial Corp originally sought to raise S$75m in two tranches (S$25m placement tranche, S$50m retail tranche), the strong orders for the institutional "placement" tranche saw that tranche's size expanded to S$50m. For the remaining S$25m retail tranche, Aspial saw S$217.3m of applications (8.7x subscribed) – Aspial eventually expanded the retail tranche to S$100m, raising a total of S$150m in the process.
First SGD High Yield Retail Bond?

As we guided previously (Aspial Corp: 5 Things to Know About Singapore's First "High Yield" SGD Retail Bonds), Aspial Corp's latest retail bond offering (ASPSP 5.250% 28Aug2020 Corp (SGD)) represents what is possibly Singapore's first SGD high yield retail bond, offering investors a fairly high yield but also entailing higher credit risk. Investors who are comfortable with the higher risks associated with the Aspial retail bond can now invest in the bonds with a minimum investment piece size of S$1,000. As highlighted previously, this represents the minimum nominal value of a bond piece, and should the bonds trade above par (as they currently are), investors will need to fork out slightly more than S$1,000 for the minimum investment amount in the bond.

The Research Team is part of iFAST Financial Pte Ltd.

Considering accrued interests, just compare the current retail bonds:
- CapMall 3.08% & FCL 3.65% fell slightly below par, they are safe bonds but this is the price to pay when the yields are too low.
- CapMall 3.8% and Genting 5.125% are trading appx at par.
- Judging from the above mentioned, there is very limited capital upside for Aspial 5.25% at current 1.02 level.

 

[lifeafter41]

good bro, such a waste of talent. i can sense that you possess certain depth maybe due to past bad experiences. but a degree is no certain path to success anyway, i am an Honours grad in EEE but end up doing trading and running some small biz.

Having your own business is better than being and employee in this time and age, with the relentless FWs being brought in to compete with Singaporeans for PMET jobs.

Understand from a HR friend there is a lot of EEE and Business grad looking for jobs, not sure if this is prevalent, maybe a check with your cohorts would reveal something.......

 

[dancingshoes]

Considering accrued interests, just compare the current retail bonds:
- CapMall 3.08% & FCL 3.65% fell slightly below par, they are safe bonds but this is the price to pay when the yields are too low.
- CapMall 3.8% and Genting 5.125% are trading appx at par.
- Judging from the above mentioned, there is very limited capital upside for Aspial 5.25% at current 1.02 level.

what is the minimum capital required to buy the bond of capmall?

 

[ontheA1]

what is the minimum capital required to buy the bond of capmall?

deleted post.