noobie question on the SGS, this bond is real good comparing the risk and is gahment backed, but when everybody start buying, bond price go up and why the yield won't go down? may i ask?
-
IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here. The OTHER forum is HERE so please stop asking.
Singapore Savings Bonds: 8 things you should know
- Thread starter GG789
- Start date
For SGS, NET yields drop for bonds that are issued when price goes up.
Eg. if a SGS gives you 2% on par ($100). Price goes up to $110 = you get NET yield of 1.82% if you buy the same bond today. ($2 divide by $110)
Please note that there is no capital protection if you give up before maturity. You stand to enjoy a capital gain or loss on-top of the accrued interests.
Ok, if you are refering to SSB, there is capital protection if you give up anytime, you will not lose your principal, unless singapore goes bust.
thks bro! dun know what's up with me, keep thinking of SGS sugar, haha...but i am referring to the spore bond coming soon.
You are welcome.
Govt just issued a notice for applications for 10 year SGS bonds. For those who are interested, can go ATM and apply. There is no fees for SGS applications.
Can apply competitive or non-competitive bids. Non-competitive means sure get at whatever yield from successful bids. Competitive bids - need to put in the interest rate for your bid.
I think yield should be about 2.4 to 2.6%.
Can apply competitive or non-competitive bids. Non-competitive means sure get at whatever yield from successful bids. Competitive bids - need to put in the interest rate for your bid.
I think yield should be about 2.4 to 2.6%.
A SGS with 112 months (9years plus) left is trading at appx 2.25% net yield
Another SGS with 12 years left is trading at appx 2.5% net yield
Gigo88 gives a good estimate of the yield at appx 2.4%.
I have never invested in SGS because of the low yields, maybe SGS is more suitable for insurers and banks.
However, if one day SGS trades in negative yields like Japan or Germany, then u will be sitting on good capital gains if you offload early.
It is trading about 1.05 now, and they have just pay the semi-annual coupons recently. Effectively, you lose almost 1-year of 5.125% coupon (premium paid) if you buy it now, if you include your brokerage commission.
- If you hold until Oct 2022, assuming Genting don't default, your real returns is about 4.4 to 4.5%pa (after deducting for the premium and brokerage commission)
- If Genting don't redeem on Oct 2022, the interest rate will increase to 6.125% based on par value, but non-redemption is a disappointing decision, so you might face some capital loss on paper.
Thanks you.
Earliest redemption date for genting perp should be Oct 2017.
ok, paiseh this is just my amateur guess... ...
If I am not wrong, there is no "step-up" self-imposed penalty on Oct 2017. As interest rates should be higher going forward, it is less likely that they will redeem in Oct 2017, so that they can continue to enjoy 5.125%. Of course, this is just my guess, no scientific or economic basis.
If Genting makes an early redemption on Oct 2017, the net-yield will be reduced to 3-3.2% because the premium paid has to be absorbed by a shorter remaining duration.
Last edited:
for ssb, maturity of 10 years will give you 3.3%, how much will you yield if you decided to stop in the 5th year?
the 3.3% is an indicative guide from the media for the interest payable on the 10th year, not every year
Using the same basis (correlated to current SGS), you should be getting approximately less than 10% (total for 5 years), if you decide to stop in the 5th year. No point guess, just wait for more information when it is launched.
Oh, didn't know that genting perp has a redemption date on October 2017. All the while I thought it's is perpetual.
Anyway, if it's in October 2017, 2 years from now will be redeemed at par, if buy at 105, then if really is not worth it, though not too sure what would be the final yield.
http://info.maybank2u.com.sg/person...aybank-saver-series-9-structured-deposit.aspx
Maybank Saver Series 9 Structured Deposit
From 4 May to 8 June 2015, invest in Maybank Saver Series 9 Structured Deposit and earn up to 11.3% over 5 years, including a bonus interest of 1% at the end of Year 5†.
Key info:
5-year Structured Deposit*
100% Principal Guaranteed^* at Maturity
Minimum Investment Amount of S$30,000
Tenure Year 1 Year 2 Year 3 Year 4 Year 5
Potential Total Payout 11.30%
Guaranteed Annual Payout SGD 2% 2.05% 2.05% 2.10% 2.10% + 1%†
good ?
Maybank Saver Series 9 Structured Deposit
From 4 May to 8 June 2015, invest in Maybank Saver Series 9 Structured Deposit and earn up to 11.3% over 5 years, including a bonus interest of 1% at the end of Year 5†.
Key info:
5-year Structured Deposit*
100% Principal Guaranteed^* at Maturity
Minimum Investment Amount of S$30,000
Tenure Year 1 Year 2 Year 3 Year 4 Year 5
Potential Total Payout 11.30%
Guaranteed Annual Payout SGD 2% 2.05% 2.05% 2.10% 2.10% + 1%†
good ?
This is not a recent promotion.
Your public bank is a better choice.
Besides, the potential total payout is just 11.3%
Your FCL 3.65% gives almost the same returns (if you reinvest the yields) within 3 years.
The chances of early 2017 redemption are not high for two reasons:
- Usually in the industry, the issuer hints about early redemption by including a step-up (higher) interest rates. For g, the step-up is in 2022.
- Re-issuing Preference Shares might not be much cheaper in 2017, including PB rebate. So might as well let it roll beyond 2017
What are the charges and fees.??
Got CDP custodian charges .?
Got GST..?
Got processing fees..???
This damned govt charged me $3 processing fee for using medisave to pay to the poly-clinic .
BTW, Genting PS will start to pay higher interest (6.125%) on payment date 18 Oct 2022 and thereafter, if the PS are not redeemed by then.
I think still too early to tell whether will redeem or not. Those who buy Genting PS has to believe that redemption is not likely come Oct 2017.
Also, there is no guarantee that the company will declare dividend on PS at every dividend date. Of course, if they choose not to declare dividend to PS holders, they also cannot pay dividend to Ordinary shareholders. The good thing about Genting PS is that the dividends are cumulative, and has to be paid out prior to any redemption.
Last edited:
Similar threads
