What will happen to Garmen securities bond if pappy crash ?

[chootchiew]

1 of my friend invested millions in SGS Bonds. Now he starts to get little worried of what will happen to the AAA ?

 

[sochi2014]

When interest rates go up, the price of bonds will fall. He is screwed basically because interests rate are at the lowest levels right now and it has to go up eventually to control inflation.

 

[johnny333]

1 of my friend invested millions in SGS Bonds. Now he starts to get little worried of what will happen to the AAA ?

With interest rates so low I'm surprised anyone would put all their eggs in one basket only, especially bonds.

 

[makapaaa]

Hence the need for the new government to jaga the FAP Traitors' escape routes after the latter are being toppled.

 

[chootchiew]

When interest rates go up, the price of bonds will fall. He is screwed basically because interests rate are at the lowest levels right now and it has to go up eventually to control inflation.

When he invested the full basket, his decision was based on scenario whereby any bank collapse, gov will the the last to collapse.
Can a gov collapse and credit ratings drop, while all the bank still function as normal ?

 

[winnipegjets]

When he invested the full basket, his decision was based on scenario whereby any bank collapse, gov will the the last to collapse.
Can a gov collapse and credit ratings drop, while all the bank still function as normal ?

The coffers are empty ...GIC, Temasek and CPF. They are all empty.

 

[MarceloVieira]

Do they have swiss bank accounts?

 

[johnny333]

The coffers are empty ...GIC, Temasek and CPF. They are all empty.

Maybe yes or Maybe not.

As a precaution I have moved the bulk of my $ offshore. When the old fart ups the lorry, I expect plenty of uncertainty. LHL is creating so many problems that I doubt he will survive without his papa . In the past LKY would have bailed him out, but nowadays he can't even stand without assistance

 

[mojito]

Your friend has nothing to worry about. Since the bond is denominated in sgd, the govt can always print more money to meet those obligations. Therefore there is little or no risk of default. Just like the CPF funds.

 

[laksaboy]

Maybe yes or Maybe not.

As a precaution I have moved the bulk of my $ offshore. When the old fart ups the lorry, I expect plenty of uncertainty. LHL is creating so many problems that I doubt he will survive without his papa . In the past LKY would have bailed him out, but nowadays he can't even stand without assistance

Even the act of planting a tree requires so much manpower and eye power these days.

Still, that's nothing compared to the manpower and eye power that'll be activated when his impending funeral comes.

 

[chootchiew]

Still, that's nothing compared to the manpower and eye power that'll be activated when his impending funeral comes.

You mean the manpower and eye power is the supporting tearful ones or the dancing joyful ones ?