Singapore Bonds

[dancingshoes]

thks bro but i find that Uk and s'pore has similar economy structure, they are banking and financial centres, they want their money to be stronger and not weaker. if like you said, if they borrow money, why they don't want to borrow in pounds just in time before interest rate rise? and furthermore, from the news, s'pore won't raise interest unless FED does.

I believe that is not the true consideration. They are just trying to borrow as much as possible because interest rates are rising, and perpetual securities can allow them stretch debt limits more. Local listed branded property companies can enjoy very very low rates when they issue bonds. In fact, 5% is the indicative rate, they might price the bond at 4.8 or 4.9% eventually.

 

[Runifyouhaveto]

thks bro but i find that Uk and s'pore has similar economy structure, they are banking and financial centres, they want their money to be stronger and not weaker. if like you said, if they borrow money, why they don't want to borrow in pounds just in time before interest rate rise? and furthermore, from the news, s'pore won't raise interest unless FED does.

I only buy SGD bonds because Singapore is very happy. Got deflation means, good to hide in the country's currency/bonds.

Singapore's consumer prices fell at a faster-than-expected pace in May, extending deflation for the seventh straight month
http://www.finchannel.com/index.php...pore-stays-in-deflation-cpi-falls-0-4-on-year

We had massive increased in petrol tax and even small hikes in bus fares (when oil prices are down) to limit the deflation. Are we not the happiest country in the world, we just need to keep hiking the prices of more things to make our economy healthier.

 

[dancingshoes]

moreover, i read that the risk in perpetual bond is that issuer can recall back the bonds that they issue, so they may be selling their bond like hot cakes, after few years, when interest is too high for them, they just recall all of it...

I only buy SGD bonds because Singapore is very happy. Got deflation means, good to hide in the country's currency/bonds.

Singapore's consumer prices fell at a faster-than-expected pace in May, extending deflation for the seventh straight month
http://www.finchannel.com/index.php...pore-stays-in-deflation-cpi-falls-0-4-on-year

We had massive increased in petrol tax and even small hikes in bus fares (when oil prices are down) to limit the deflation. Are we not the happiest country in the world, we just need to keep hiking the prices of more things to make our economy healthier.

 

[Runifyouhaveto]

moreover, i read that the risk in perpetual bond is that issuer can recall back the bonds that they issue, so they may be selling their bond like hot cakes, after few years, when interest is too high for them, they just recall all of it...

It is actually a positive sign if they redeem. Nobody really wants to lend money to a borrow who never repays the principals.

When the interest rates become too high, there is a chance that perp bonds don't recall it because the cost of issuing new ones is more expensive. It happened to Deutsche Bank during subprime crisis when they decided to let it roll over (not recall) because the cost of re-issuing was too high back then (ah RUN's 1-year USD Fixed Deposits was about 6%pa).

Perp Bonds can hint to you if they are sincere about redeeming back after a few years by imposing high step-up penalties for their failures to redeem. Some perp bonds don't have such clauses.

PS: Acendas have another 5% perp bond trading at 2% premium before today's new issue.

 

[dancingshoes]

thanks, you are a mountain of knowledge...but it's still important that the bond issuer must be credible not some ah beng SME kind of company.

It is actually a positive sign if they redeem. Nobody really wants to lend money to a borrow who never repays the principals.

When the interest rates become too high, there is a chance that perp bonds don't recall it because the cost of issuing new ones is more expensive. It happened to Deutsche Bank during subprime crisis when they decided to let it roll over (not recall) because the cost of re-issuing was too high back then (ah RUN's 1-year USD Fixed Deposits was about 6%pa).

Perp Bonds can hint to you if they are sincere about redeeming back after a few years by imposing high step-up penalties for their failures to redeem. Some perp bonds don't have such clauses.

PS: Acendas have another 5% perp bond trading at 2% premium before today's new issue.

 

[Runifyouhaveto]

thanks, you are a mountain of knowledge...but it's still important that the bond issuer must be credible not some ah beng SME kind of company.

No lah, i just writing to pass time. Got knowledge no money also useless.

SMEs cannot issue bonds openly but many ah beng construction and O&G listed companies are also doing so.

 

[Runifyouhaveto]

Ascott markets Sing dollar subordinated perpetual bonds
http://www.reuters.com/article/2015/06/23/asia-bonds-idUSL3N0Z90E720150623
SINGAPORE, June 23 (IFR) - Ascott Residence Trust is offering Singapore dollar non-call five perpetual bonds at a price guidance for a yield in the 5% area. It will be the issuer's second perpetual bonds, following a S$150 million 5% perp callable in 2019 issued last October.

Priced at 4.68%
http://infopub.sgx.com/FileOpen/News Release.ashx?App=Announcement&FileID=357135

 

[Runifyouhaveto]

Meltdown in local O&G bond prices, approximate-yields

>25%pa Yield (considering price below value)
Swiber 5.55%
Vallianz 7.2%

>20%pa Yield (considering price below value)
Vallianz 7.25%
Otto 7%
Ezra 8.75%

>15%pa Yield (considering price below value)
Swiber 6.25%
Swiber 6.5%
Swiber 7%

>10%pa Yield (considering price below value)
Ezra 4.875%
Falcon 5.5%
Mencast 5.5%
Geo Resources Energy 7%

 

[Runifyouhaveto]

Potential Issue: 4-year Bank of China Singapore dollar bonds at around 3.0%
http://www.reuters.com/article/2015/06/24/idUSL3N0ZA1FW20150624

 

[bart12]

SINGAPORE - Singapore Telecommunications (Singtel) announced on Tuesday that it has closed the order book for its US$500 million 10-year notes after they were 2.5 times oversubscribed, receiving an interest of approximately US$1.25 billion from investors.

The Notes, which were issued by subsidiary Singtel Group Treasury (SGT), will carry a coupon of 3.25 per cent per annum and are drawn down under SGT's $10 billion Euro Medium Term Note Programme guaranteed by Singtel. They will mature in 2025.

Singtel said the issue is part of its long-term financing strategy and extends the debt maturity profile of the telco and its subsidiaries. The net proceeds from this issue will be applied by SGT to fund its ordinary course of business.

Said Ms Lim Cheng Cheng, Singtel group chief financial officer: "We are pleased to have received very keen support and interests from investors which reflected confidence in the Singtel Group's strong credit quality."

- See more at: http://www.straitstimes.com/news/bu...-year-notes-325-20150624#sthash.N8Qp26rA.dpuf

 

[Runifyouhaveto]

Hidden Debt Risks Rise as Chinese Developers Scrap Bond Promises
http://www.bloomberg.com/news/artic...ise-as-chinese-developers-scrap-bond-promises

Like that also can

 

[bart12]

Asia Black Monday..

 

[SgGoneWrong]

Hidden Debt Risks Rise as Chinese Developers Scrap Bond Promises
http://www.bloomberg.com/news/artic...ise-as-chinese-developers-scrap-bond-promises

Like that also can

With the tiongs, anything is possible.

 

[dancingshoes]

today bloodshed everywhere, china is officially in bear market now.

Hidden Debt Risks Rise as Chinese Developers Scrap Bond Promises
http://www.bloomberg.com/news/artic...ise-as-chinese-developers-scrap-bond-promises

Like that also can

 

[Runifyouhaveto]

today bloodshed everywhere, china is officially in bear market now.

Last week, a professor said on FM958 5.50pm talk that China will drop a bit and hit 7000 points.

 

[GG789]

Last week, a professor said on FM958 5.50pm talk that China will drop a bit and hit 7000 points.

when? got meh?

 

[Runifyouhaveto]

when? got meh?

i observed he very positive all the times.

 

[dancingshoes]

is it daniel loh> http://www.danielloh.com/

i observed he very positive all the times.

 

[Runifyouhaveto]

no lah, some professor wang
always say must buy, must buy, must buy
He said SSE drops a while, will cross 7000 in a few months.

Now SSE 4000, dunno he got maximum buy or not

 

[winnipegjets]

View attachment 22091
Asia Black Monday..

It is going to be fun today in Europe & US. Let the party begin.