where the money going to be in the next decade?

[Sinkie]

Three words............

Africa, Africa, Africa

 

[nutbush]

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/

take a look at this, seems that bond and yield are going up simultaneously...???

Let's say that a bond gives you a predetermined coupon/interest of $50. In the past you buy the bond for $1000 = 5% yield
Now if you buy the bond at $1100 (price up) = 4.5% yield (yield down).

The global bond market value is nearly double of the global equity market value.

hahaaha.... and the global derivatives market is more than 12x the value of the global bond market. but please don't learn about this sector.

 

[MM.Thaksin]

i am referring to which industry? i think property and banking is where the money is...

Monies in this world will be soon mass turning to ASH. Gone case and lost forever.

 

[nutbush]

when many pple buy bond, does that mean the yield is expected going up or interest rate is going down? when interest rate is down, bond price is up and yield is down...??

 

[yinyang]

http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
take a look at this, seems that bond and yield are going up simultaneously...???

That's just the "spread" of US govt bonds (of different maturities, ie 3 months period and so on). Not trend of yield.

Guiding principle, is longer you lock up your money... diff yield rates. Yield is coupon (interest) rate over bond price. If bond market valuation goes up, your yield (simply put, ratio) correspondingly goes down -as in 4.5% example. Then you have capital gain on bond price

 

[kaipoh]

说什么都是假的, 放在cpf穩賺沒賠,万旡一,还想啥!

let's say that a bond gives you a predetermined coupon/interest of $50. In the past you buy the bond for $1000 = 5% yield
now if you buy the bond at $1100 (price up) = 4.5% yield (yield down).

The global bond market value is nearly double of the global equity market value.

Hahaaha.... And the global derivatives market is more than 12x the value of the global bond market. But please don't learn about this sector.

 

[Runifyouhaveto]

There is also a weird development in some bond markets lately

Let me summarize :
- cost of financing is going higher, going forward
In Mar, Company A issued a 6% bond
In Sept, Company A issued a 6.5% bond

- Yet increment in bond price increment is even higher
In Mar, the price of the 5% bond is 100
In Sept, the first-day price of the 5.2% bond is 108

Initially 5/100 = 5% yield
Now 5.2/108 = 4.8% yield

Standard Chartered issued a 5.8% USD bond recently. It was quickly snapped up and hit nearly 110 in the first day. (10% premium)

 

[Runifyouhaveto]

That's just the "spread" of US govt bonds (of different maturities, ie 3 months period and so on). Not trend of yield.

Guiding principle, is longer you lock up your money... diff yield rates. Yield is coupon (interest) rate over bond price. If bond market valuation goes up, your yield (simply put, ratio) correspondingly goes down -as in 4.5% example. Then you have capital gain on bond price

correct sir, this is a normal yield-curve. That means, rightfully, you get higher % of interests if you place fixed-deposits with banks with longer maturity. However, it happened after the lehman brother crisis in Singapore that the yield-curve became inverted for a few months. During that period, the banks give you 5%pa for 6-mth USD fixed deposits OR 4%pa for 12-mth USD fixed deposit.

When yield curve becomes inverted = money crisis.

 

[bic_cherry]

i am referring to which industry? i think property and banking is where the money is...

In the pockets of ruling politicians and their royal (loyal) cronies:

The problem with Sinkieland is that oftentimes, for a select minority, "dignity" can be bought with political connection/ changing goal posts, tax payers$$$ and ( if all else fails) corruption/ extortion/ bribery...

Political cronyism/ changing goal posts:

[Pict= [URL="http://www.theonlinecitizen.com/2012/04/disassembling-grc-benefits-pap-1/"]Disassembling GRC system benefits PAP (Part 1 of 3)[/URL]]

Extortion/ Use tax payers $$$ to earn "dignity":

"If the annual salary of the Minister of Information, Communication and Arts is only $500,000, it may pose some problems when he discuss policies with media CEOs who earn millions of dollars because they need not listen to the minister's ideas and proposals. Hence, a reasonable payout will help to maintain a bit of dignity."

[IMG URL]

Political Corruption/ extortion/ bribery:

fixing opposition parties...

(YouTube; LHL: "fix the opposition")