well ... obviously SGS is a favorite, 5y SGS yield drops to 0.31% ... it is no wonder 5y corp bond yield @ 2.3% will sell like hotcakes
15 Jan 2013 5y 0.31%
it is bond super bubble
Music of the night
well ... obviously SGS is a favorite, 5y SGS yield drops to 0.31% ... it is no wonder 5y corp bond yield @ 2.3% will sell like hotcakes
15 Jan 2013 5y 0.31%
it is bond super bubble
Ride at your own risk !!!
Junior
Any idea who are buying and compressing the Sgs yield?Originally Posted by phantom_opera
well ... obviously SGS is a favorite, 5y SGS yield drops to 0.31% ... it is no wonder 5y corp bond yield @ 2.3% will sell like hotcakes
15 Jan 2013 5y 0.31%
it is bond super bubble
we can easily get FD 1year @ 1%.
Music of the night
it is probably rating issue SGS 5y is AAA ... your banker FD is not rated
Ride at your own risk !!!
Newbie
Just to share info on Ezion perp share issue received from my bank:
Issuer Ezion Holdings Limited
Issue SGD Perpetual Securities
Ranking Subordinated; Senior only to Issuer's ordinary shares
Expected Issue Ratings Unrated
Format Regulation S only and S274/275 of SFA
Product Risk Class Rating P4
Tenor Perpetual NC4
Initial Guidance: 7.5 - 8% area
Issue Price TBA
Issue Size TBA
Call Option [ ] 2017 & at every distribution date thereafter at par
Distribution Fixed. Reset in Year 4 & every 4 years thereafter
Step Up 300bps in Year 4
Distribution Payment Semi-annually in arrears
Distribution Deferral At issuer's discretion. Any deferred distributions are cumulative
Dividend Pusher Yes, with 12 month look back period
Dividend Stopper Yes
Other Redemption At par under tax reasons, accounting reasons, tax deductibility and clean up event
Min subscription / Denomination S$250k x S$250k
Sole Bookrunner CS, DBS (B&D)
Junior
In Sep12, Ezion launched perp bond @7.8%, Callable 2015. Price to buy 100.3 to 100.5. This one will be a better deal. The today Eizon perp bond callable is 2017. Coupon likely to be below 8%.
Biosensor straight bond 4.875% 1st day trading to sell is 100.8. As for Eizon perp bond (7.8%) issued in Sep12, to sell is below par (99.8?) after 4mths. U can see the different between Ezion perp bond & a Biosensor straight trading price.
So you need to be careful buying perp bond although the yield is very high. It is more for short term investment for Perp bond.
rdgs,
Vic
Newbie
Thanks Vic - I wasn't planning to buy this one. Was using the earlier perp reference re ongoing price and wasn't so impressed.
Info on 2 more bond issuances launched today (actually Guthrie is out too, but I think DBS is not participating, so nothing to share):
Unicredit
Issuer:
Unicredit S.P.A.
Issuer Ratings:
BBB+ neg (S&P), Baa2 neg (Moody’s), A- neg (Fitch)
Issue:
SGD Lower Tier II Subordinated Notes
Subordination:
Dated Subordinated, pari passu with existing dated subordinated Tier 2 notes
Issue Size :
SGD benchmark
Prelim Security Ratings:
BBB (S&P) / Baa3 (Moody’s) / BBB+ (Fitch)
Offering Format:
Reg S Bearer (including to investors in Singapore
pursuant to sections 274 and 275 of the SFA)
Maturity Date:
10.5 years non-call 5.5 years
Product Risk rating
P4 - Sophisticated
Issuer Call Date:
One time call in year [5] at the Issuer’s discretion, subject to regulatory approval
Interest Basis:
Fixed rate, single reset after 5.5 years if not called by Issuer on Issuer Call Date
Step-Up:
None
Interest on Notes:
[5.50% - 5.75% area]% semi-annual, Act/365 (Fixed), until the Issuer Call Date.
Reset after the Issuer Call Date to the prevailing 5 year Singapore Dollar SOR plus the Initial Spread over the interpolated 5.5 year SOR
Regulatory Call:
Applicable. At par together with accrued interest. For the purpose of this transaction the “Minimum Disqualification Amount” means 100% of the aggregate outstanding nominal amount (to be disclosed in the final terms)
Tax Call:
Applicable as set out in Condition 9.2 of the EMTN Prospectus
Docs/Denoms/Listing:
EMTN Programme / SGD250k + 1k denoms / [Luxembourg]
Clearing:
Euroclear / Clearstream
Governing law:
English Law other than the subordination provisions which will be under Italian Law
Bookrunners:
Nomura (B&D) / Standard Chartered / UBS Investment Bank
Timing:
This week’s business
Cheung Kong
Issuer:
Mizar Enterprises Limited (to be renamed Cheung Kong Bond Securities (03) Limited)
Guarantor:
Cheung Kong (Holdings) Limited
Issuer/Guarantor Ratings:
Unrated
Issue Ratings:
Unrated
Type:
US$ Senior Perpetual Securities
Status:
Senior Unsecured
Format:
Regulation S Registered
Size:
US$ Benchmark
Tenor:
Perpetual Non-Call 5 years
Product Risk rating
P4-Sophisticated
Issuer Call Option:
[ ] January 2018 and every distribution payment date thereafter
Coupon Structure:
[ 5.5% area ] Fixed for life, payable semi-annually in arrears
Coupon Deferral:
Optional, subject to Dividend Pusher with 3 months look back; Dividend Stopper
Early redemption rights:
At par, in case of Accounting or Tax Event
Details:
US$200K/1K denoms; HKEX Listing; English Law
Use of Proceeds:
General corporate funding purposes
Timing:
As early as today’s business
Joint Books:
Barclays / BofAML
Junior
Surprisingly, Std chartered clients get almost 100% allocation on Biosensors. Most of them sell on the 1st the day of trading @101. Profit $2500.
rdgs,
Vic
Junior
[quote=starrynight]Thanks Vic - I wasn't planning to buy this one. Was using the earlier perp reference re ongoing price and wasn't so impressed.
Info on 2 more bond issuances launched today (actually Guthrie is out too, but I think DBS is not participating, so nothing to share):
Unicredit
Issuer:
Unicredit S.P.A.
Issuer Ratings:
BBB+ neg (S&P), Baa2 neg (Moody’s), A- neg (Fitch)
Issue:
SGD Lower Tier II Subordinated Notes
Subordination:
Dated Subordinated, pari passu with existing dated subordinated Tier 2 notes
Issue Size :
SGD benchmark
Prelim Security Ratings:
BBB (S&P) / Baa3 (Moody’s) / BBB+ (Fitch)
Offering Format:
Reg S Bearer (including to investors in Singapore
pursuant to sections 274 and 275 of the SFA)
Maturity Date:
10.5 years non-call 5.5 years
Product Risk rating
P4 - Sophisticated
Issuer Call Date:
One time call in year [5] at the Issuer’s discretion, subject to regulatory approval
Interest Basis:
Fixed rate, single reset after 5.5 years if not called by Issuer on Issuer Call Date
Step-Up:
None
Interest on Notes:
[5.50% - 5.75% area]% semi-annual, Act/365 (Fixed), until the Issuer Call Date.
Reset after the Issuer Call Date to the prevailing 5 year Singapore Dollar SOR plus the Initial Spread over the interpolated 5.5 year SOR
Regulatory Call:
Applicable. At par together with accrued interest. For the purpose of this transaction the “Minimum Disqualification Amount” means 100% of the aggregate outstanding nominal amount (to be disclosed in the final terms)
Tax Call:
Applicable as set out in Condition 9.2 of the EMTN Prospectus
Docs/Denoms/Listing:
EMTN Programme / SGD250k + 1k denoms / [Luxembourg]
Clearing:
Euroclear / Clearstream
Governing law:
English Law other than the subordination provisions which will be under Italian Law
Bookrunners:
Nomura (B&D) / Standard Chartered / UBS Investment Bank
Timing:
This week’s business
I am applying for this Unicredit bond. S$250k. Hopefully can get it.
rdgs,
Vic
Newbie
Hi Vic,
Unicredit is an italian bank right? How are they doing?
Junior
It is a Italian bank. It is one of Europe's leading commercial bank with strong roots in 22 European countries. The bond is more for a short term holding.
rdgs,
Vic
Newbie
Good luck! I need to sort out my housing situation first, so don't think I'll gorge on more bonds still I get the other issue "resolved".
[quote=cbsh38584]
Newbie
Was just told I did not get allocated the Biosensors bond
Newbie
Info on Hong Fok bond offering launched today:
Issuer
Hong Fok Corporation Limited (“Hong Fok”)
Status
Senior, unsecured
Expected Issue Ratings
Unrated
Format
Off Issuer's SGD300Millon Multicurrency MTN Programme
Product Risk Class Rating
P4
Maturity Date
5-year
Initial Guidance
5.00% area, semi-annual, ACT/365 (Fixed)
Issue Price
100%
Issue Size
TBD
Min subscription / Denomination
SGD250K/SGX-ST/CDP/Singapore Law
Sole Bookrunner
HSBC, OCBC Bank (B&D)
Think I'll give it a miss...
Junior
Std chartered is the book runner. Almost all get min 250k allocation. Most of them sold @1.01 (can contra within a week ) at profit $2500.Was just told I did not get allocated the Biosensors bond
Bioseensor straight bond 4.875% 4 yrs is a good deal if can keep till early 2017.
rdgs,
Vic
Newbie
Too bad for me then..
2 questions if you don't mind:
a. when you sat $1.01, you mean gross or nett? If the former, then for someone like me who has to pay 0.25% comm each way, effectively it's 0.5% nett gain?
b. any views on buying the Aspial 3 year bond trading in the mkt now?
Newbie
Commentary from another website, for what it's worth:
Old firm (Market Cap SGD 486 mio) trying to capitalise as much as they can on their asset price gains to raise cash.
I will not elaborate on the company as OCBC did an excellent write up about them.
Some comments :
* The company failed to tapped the market when their secured bonds matured in 2011. They ended up pledging their assets for bank loans instead.
* It would seem that they have maxed out their borrowing ability with the banks as loan to valuation ratios are typically 50-60% and HFC has SGD 1.2 bio assets vs loan SGD 592 mio (and intra group debt of SGD 703 mio).
* All their assets are pledged.
All the loans of the Group are secured by:
(i) mortgages on and assignment of rental income from investment properties with carrying values of
approximately $1,257,660,000 as at 31 December 2011 (2010: $1,104,803,000);
(ii) mortgages on development properties with carrying values of approximately $390,294,000 as at
31 December 2011 (2010: $350,531,000) and assignment of the rights, titles and interest in the tenancy
agreements, sale and purchase agreements, building contract, performance bonds and insurances from
the development properties; and
(iii) guarantees by the Company (Note 16).
extracted from annual report.
* This bond issue is thus totally UNSECURED and in other words, subordinated to the loans as well a deferred tax liability.
That is probably the reason for the 5%.
I would not venture to use Guocoland or HPL as comparables as they are much bigger and more diversified. HFC has only 2 main properties in their stable, granted they have been in business for 50 years. The Concourse Skyline project has been considerably delayed which begs to question their development record.
Overall not a compelling buy at 5% when we have Aspial paying up 5% for 3 years, Guocoland and LMIRT last coming at 4.35% and 4.48% for 5 years just a couple of months back. They should still be able to raise SGD 50-100 mio (total MTN size is SGD 300 mio).
Junior
It is nett 1%. Buy@100 (not 100.25).Sell @101 after deducting Comm
I think it can be nego for some banks if U are active investors for priority customers.
Aspial (Former Lee Hwa jewellery) using money from us (potential bond investor) to build residentail house & sell at a profit >30%. They hv issued too many bond recently. I avoid this. Only those who hv insider info about this company, will know whether to take this risk.
Unicredit no allocation, they allocate more to big insituitional investors.
rdgs,
Vic
Newbie
Goddit! Thanks for the tips
Newbie
lol the only way to get some form of payout from hong kok is to lend them money, buy their bond... LoL
Newbie
Hi Starrynight and Vic
My bank also offered me this HF bond at 100.75. Is this rate cut throat?
So this bond cannot buy?
Newbie
That's quite high. Standard comm at DBS Treasures to buy is 0.40%, so your 0.75% is high. I am able to get 0.25% by bargaining.
What bank / platform is this, if you don't mind saying?
If you want to speak to my banker, do let me know - happy to introduce.
Newbie
Another bond launch today:
Issuer:
Thai Oil Public Company Limited
Issuer Ratings:
Baa1 stb (Moody's) / BBB stb (S&P)
Expected Issue Ratings:
Baa1 (Moody's) / BBB (S&P)
Structure:
Fixed rate Guaranteed Senior Unsecured Notes
Format:
Rule 144A / Regulation S
Product Risk Rating:
P4 (Both Tranches)
Maturity:
US$ 1bn across both tranches (capped)
Tenor:
10-year | 30-year
Coupon:
3.94% area | 5.24% area
IPG:
T+210bps area | T+225bps area (vs T 2¾Oct 42s)
Terms:
SGX listing, $200k/1k denoms, New York law
Change of Control:
125bps Coupon step
Joint Books:
Barclays, HSBC, SCB
mutant powerpuff
How you get info on bond launch date?
Via business times?
Newbie
Yr RM will send to u if u indicate yr interest.
Junior
HI Starry
whcih bank give u 0.25%
I am switching out to another bank
Newbie
DBS Treasures - you want to speak to my banker? Happy to share
Junior
sureDBS Treasures - you want to speak to my banker? Happy to share
PM me pl
Junior
It is too high. should be 100.25. Are U familair with HF ?
rdgs,
Vic
Newbie
Hi Starry & Vic
HSBC
i also think high.....what is HF?
Now property cannot buy, i am thinking of preferential share like ocbc, what do you think?
Thanks all for your kind sharing.
Newbie
HF = Hong Fok
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