• 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

lifeafter41

Alfrescian (Inf)
Asset
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

Dear Run, thanks for the info.
Another thought came to mind too, is that unless they have a big cash pile to redeem it, then it would make sense.
With the recent reporting season of Genting Singapore, with their net profit down, it might be more expensive to re-issue PS.

Just a thought there.
 

Runifyouhaveto

Alfrescian
Loyal
Dear Run, thanks for the info.
Another thought came to mind too, is that unless they have a big cash pile to redeem it, then it would make sense.
With the recent reporting season of Genting Singapore, with their net profit down, it might be more expensive to re-issue PS.

Just a thought there.

- They have a lot of cash-in-hand now
- But maybe these cash might be used for other projects, eg. Jeju
- Many of their fixed assets are pledged to banks, so issuing unsecured bonds will weaken their financial ratios which affects the covenants of some existing loans
 

GG789

Alfrescian
Loyal
4 Reasons Why You Should Be Buying The Singapore Savings Bonds

1) Virtually risk free! Backed by the Government of Singapore

The Government of Singapore is guaranteeing both the capital and the interest accrued.

Singapore is one of the few AAA rated countries left in the world and with the Government’s backing, you will never need to worry about losing your hard earned money as compared to other investment products.

2) Cash on demand! There is no penalty for early redemption

If you were to sell a conventional bond in the market, interest fluctuations will dictate the price. When interest rate rises, one would expect to make some losses and vice versa.

However, the Singapore Savings Bond (SSB) allows us to redeem our monies within one month from the application, without any losses despite the direction of interest rates.

If you were to apply for redemption between the first business day and 4 business days before the end of the month, you will receive your monies + accrued interest on the second business day of the next month.

3) Low cost. You only need $500 to start investing.

As the SSB is meant for everyone in Singapore, the minimum amount



investible is set low, at $500, such that everyone can participate in this program. One is able to apply for up to $50,000 per bond issue with a total holding cap of $100,000.

4) Attractive interest rates that beat banks

The average yields on SGS Bonds since January 2014 to May 2015 are 2.3%, 1.5%, 0.7% and 0.5% for 10 year, 5 year, 2 year and 1 year respectively.

Therefore, you can expect to earn roughly an annual payout of about $2.30 for every $100 invested or a semi-annual payout of $1.15 for every $100 invested, for the 10 year SSB.



Comparing to the average bank savings deposit of 0.11% to 0.12% annually, the better choice would be to hold your monies in the SSB.
 

Runifyouhaveto

Alfrescian
Loyal
DBS Bank has established a US$10 billion (S$13 billion) global covered bond programme, under which it will issue covered bonds from time to time. The initiative, a first for the Singapore market, was announced in a press release on Wednesday (Jun 17).

Covered bonds refer to debt issued by banks, secured against a specific asset pool that remains on the issuer's balance sheet.

The bank said that covered bonds “are rated higher than unsecured debt, often attaining the coveted AAA rating, as investors have recourse to both the issuer and a portfolio of assets”.
http://www.channelnewsasia.com/news/business/singapore/dbs-launches-singapore-s/1921194.html

more competition for our money
 

Runifyouhaveto

Alfrescian
Loyal
if you want to keep for 1-2 years

try this
SGDFD-953x232(Hero)-1B.jpg
 

Confuseous

Alfrescian (Inf)
Asset
This should be a good place to park your spare cash.

Interest rate for 1st year is already 0.9%, better than most deposit accounts. And if you keep it longer than 1 year, u will get 1.5% for 2nd year.

You will have the flexibility to withdraw money anytime, and guranteed to redeem at par value + interest accrued.

You will need to look at the actual interest rates of these bonds when they are launched, and compare to bank deposit rates such as CIMB starsaver or SCB E-saver etc.

Banks have already started raising deposit rates, from this morning's papers.
Better check out first.
 

vomitblood

Alfrescian
Loyal
so the coupon rate is based on how long you hold? For instance, if I hold it for only 2 years then i will be entitled to 1.sth% and if i hold for 10 years then will get 2.4%??
 

greedy and cunning

Alfrescian
Loyal
4 Reasons Why You Should Be Buying The Singapore Savings Bonds

1) Virtually risk free! Backed by the Government of Singapore
The Government of Singapore is guaranteeing both the capital and the interest accrued.
sure can guarantee if u print your own money. what's the problem ?

Singapore is one of the few AAA rated countries left in the world and with the Government’s backing, you will never need to worry about losing your hard earned money as compared to other investment products.
rating is just a game. the rating agency don't even have a true picture.
US Ass subprime crisis is a good example.


2) Cash on demand! There is no penalty for early redemption
3) Low cost. You only need $500 to start investing.
to lure gullible lower income to invest.
one of the intended effect is to make this grouip of
gullible think twice during eRection.

4) Attractive interest rates that beat banks

there are many other more attractive investments.

rated AAA ?
DBS was rated AAA but need to makan POSB quietly to save itself.
if HBOS is owned by british government it may still exist today
hundreds of US Ass banks failed between 2009 and 2010
if any one f this banks was gov state owned , it may still exist.
DBS survived because both itself and posb are state controlled.
 
Top