Singapore corporate debt bubble

[Confuseous]

According to research by Bloomberg,

Singapore companies’ indebtedness has swelled to the most in Asia after China and India as the city-state’s economic growth slows, according to GMT Research Ltd.

Leverage among the Southeast Asian nation’s corporates is following counterparts in the two larger economies to a level considered a “danger threshold,” Gillem Tulloch, founder of the Hong Kong-based researcher, said in an interview yesterday. Debt rose to six times the amount of operating cash flow in 2013 for non-financial Singaporean companies, from 5.1 times in 2012, a report by GMT Research shows.
Earlier, non other than vampire squid Goldman Sachs had also shown Singapore companies are over-leverage at 133% GDP. The day bubble pops, we will suddenly wake up to find that we are shithole of SE Asia.

http://veritas-lux.blogspot.sg/2014...d&utm_campaign=Feed:+blogspot/lrDIX+(Veritas)

 

[winnipegjets]

According to research by Bloomberg,

Singapore companies’ indebtedness has swelled to the most in Asia after China and India as the city-state’s economic growth slows, according to GMT Research Ltd.

Leverage among the Southeast Asian nation’s corporates is following counterparts in the two larger economies to a level considered a “danger threshold,” Gillem Tulloch, founder of the Hong Kong-based researcher, said in an interview yesterday. Debt rose to six times the amount of operating cash flow in 2013 for non-financial Singaporean companies, from 5.1 times in 2012, a report by GMT Research shows.
Earlier, non other than vampire squid Goldman Sachs had also shown Singapore companies are over-leverage at 133% GDP. The day bubble pops, we will suddenly wake up to find that we are shithole of SE Asia.

http://veritas-lux.blogspot.sg/2014...d&utm_campaign=Feed:+blogspot/lrDIX+(Veritas)

What did they spend the debt on? Have not seen any world class companies from sinkapore. Is this another way of fattening the overpaid government?

 

[Runifyouhaveto]

Many banks are using our cheap SIBOR to finance high-yield syndicate agri loans to regional countries

- Public Investment in the ASEAN's agri sector increased due to soft-commodity boom 3-5 years ago. Credit flow to the sector is increasing year after year because agriculture-sector provided the highest profitability in many of these banks. These include farm machinery loans, crop loans, land development loans, refining and processing facilities loans, etc.

- Singapore-based European & Japanese merchant banks are also extending massive loans to Indonesia & Malaysia's agri sector in search for ultra high-yield loan portfolios, usually in excess of US$10million per project. In recent years, Syndicate loans granted by Sg-based foreign banks ranged from US$100m to US$400m for several palm oil CPO project, larger than market capitalization of many ASEAN-listed agri companies.

- Most agri loans and syndicate loans are not structured for more than 5 years; projects risk becoming unsustainable and rouge debtors look set to default as cost of refinancing (interest rates) edges higher in 2014. The overall shrinking supply of credit is being accompanied by nervous agri firms consolidating their debt levels in the face of the prevailing recessionary conditions hanging over the soft-commodity sector. Defaults from agri sector will begin to increase, much earlier than any possible actual property bubble imploded in the region.

 

[dr.wailing]

It should be quite interesting to see to what extent Temasick's subsidiaries are faring??

 

[blindswordsman]

Banks in SG are now competing with one another to get customers to put funds in their fixed deposit schemes. All kinds of schemes and gifts given as well. Taking in more funds to expand lending base? Or, needing more funds to cover up non-performing loans?

When bubble in China bursts, many Chinese companies established in SG will run road. These Chinese companies are basically under-capitalised and they depend on bank financing for business ventures outside China. Should the bubble burst in either SG or China, they will also run road.

 

[escher]

May this get 100,000 onto Hong Lim Park in the future.
Holding piano wires in hand

PAP is finished.
The stinking glue and terror that hold PAP together is that old fart smear of shit on sole of shoe LKY. LKY is about to die in days or weeks.
LKY will never allow good decent people into the PAP and good decent people will not want to get into the PAP. Those in PAP are the most corrupt and moral degenerates and moral bankrupts and moral filths that are being presented to stinkaporeans as moral compasses.
None of those in PAP work for anyone but that smear of shit on sole of shoe LKY, to help him hold down Singaporeans to screw and fuck hundreds of BILLIONs from us all into smear of shit on sole of shoe LKY stinkapore sovereign funds.
They are there in PAP because LKY know that they are a bunch of self serving greedy bastards and scrapings of scums of society. To call them maggots cockroaches will be to insult real maggots and real cockroaches.


WE ALL ARE NOW WAITING FOR THE DEATH OF LKY IN COMING DAYS OR WEEKS.
WE ALL WILL YUM SENG AND YUM SENG AND YUM SENG AGAIN AND AGAIN DANCING SINGING ON TABLE TOPS AND STREETS
WE THEN WILL SEE THOSE IN PAP WITH SHARPENED KNIVES HOOTING ARSEHLOON A DOZEN NEW ARSEHOLES AND THE DEATH OF THE ENTIRE LEE KWA CLAN
WE THEN WILL PICK UP PIANO WIRES AND HANG ALL THOSE REMAINING PAP AND THEIR COLLABORATORS FROM LAMP POSTS AND SEE THOSE BASTARDS AND BITCHES DANCE.
AND HAPPINESS WILL RETURN TO OUR LAND.
AND STINKAPORE WILL BECOME SINGAPORE ONCE MORE.
https://www.torproject.org/about/overview.html.en

 

[laksaboy]

Banks in SG are now competing with one another to get customers to put funds in their fixed deposit schemes. All kinds of schemes and gifts given as well. Taking in more funds to expand lending base? Or, needing more funds to cover up non-performing loans?

When bubble in China bursts, many Chinese companies established in SG will run road. These Chinese companies are basically under-capitalised and they depend on bank financing for business ventures outside China. Should the bubble burst in either SG or China, they will also run road.

Fixed deposit.... LOL. I remembered I was a schoolkid and put in a handsome sum of money into OCBC for a 1-year fixed deposit. 5+% interest upon maturity. Oh, the good old days.

Then some clown arrived on the scene, kept interest rates low to spur on a borrowing binge, let in a horde of foreigners, 'liberalized' the banking industry (RIP Tat Lee bank and pre-DBS POSB). And the rest, as they say, is history.

 

[rushifa666]

SIBOR is very nice. Those who do not learn from history are doomed to repeat the same mistakes. For a country that is always copying others late we seemed to be finished. The housing bubble, LIBOR, low interest rates for no good reason, it's all old news. And yet they follow the footsteps in the sand leading to the hangman's noose

 

[Runifyouhaveto]

Fixed deposit.... LOL. I remembered I was a schoolkid and put in a handsome sum of money into OCBC for a 1-year fixed deposit. 5+% interest upon maturity. Oh, the good old days.

good O'days, good brother

 

[da dick]

Fixed deposit.... LOL. I remembered I was a schoolkid and put in a handsome sum of money into OCBC for a 1-year fixed deposit. 5+% interest upon maturity. Oh, the good old days.

Then some clown arrived on the scene, kept interest rates low to spur on a borrowing binge, let in a horde of foreigners, 'liberalized' the banking industry (RIP Tat Lee bank and pre-DBS POSB). And the rest, as they say, is history.

pappies like to follow all the worst angmo patterns. what to expect? i miss the 80s

 

[laksaboy]

good O'days, good brother

Wow, I can sure make use of a few 8.5% p.a. return these days.

What is 2.5% interest for CPF? It is peesai. Or as the Japs call it: 'a sparrow’s tears'.

 

[zeebjii]

What did they spend the debt on? Have not seen any world class companies from sinkapore. Is this another way of fattening the overpaid government?

Enriching themselves.