I like properties but the ABSD and SSD super turn off.Originally Posted by Rosy
REITTS like over price at the moment but even with recent correction.
Newbie
I like properties but the ABSD and SSD super turn off.
REITTS like over price at the moment but even with recent correction.
Blue blood
It's true that reits are overpriced especially the last 2 months.
Last 2 weeks price correction may be over as the FED is continuing bond buying at least for the next 4 months.
Monday's price will likely increase.
At present the DJ is increasing steadily.
probably not the only one
http://www.cnbc.com/id/100798248
It just rose to 7.6.
Blue blood
It is paradoxical.
Bad news (unemployment rate in USA rises) = good news (bond buying continues- meaning QE continues)
Music of the night
10y UST at 2.22% now .. bond market volatility has increased
Does the Emperor has clothes?
Ride at your own risk !!!
Newbie
Bought back today:
a. Cache: 123 and 124
b. Cambridge: 73.0
Small positions; will add if price drops more.
Junior
Some SGX listed Fixed income instruments.
===========================
Below are the Retail Preference shares/Perp securities
DBS bank 4.7% Due to CALL on 22nd Nov 2020.
11th June price @ 106.40.
Yield @ last traded price >4.3%
Genting SG 5.125% Due to CALL on 18th Oct 2017.
11th June price @103.
Yield @ last trade price >4.9%
Hyflux 6% due to CALL on 25th Apr 2018
11th June price @107.3
Yield @ last trade price >5.5%
If U are happy with a yield of >4% as mention above. You may want to consider using your $$$ in your SRS acct to buy small amt . Maybe 5k to 10k. The lower the retail Preference share price, the better is the yield to CALL. Check with your with banker to seek for their advice.
You can open a Supplementary Retirement Scheme (SRS) account with authorised local banks to enjoy tax benefits. Singapore citizens, permanent residents and foreigners are eligible for the SRS scheme
Both you and your employer can contribute to your SRS account.
SRS are eligible for tax relief if you are assessed as a tax resident.
You can invest the funds in your SRS account.
Investment gains are tax-free before withdrawal.
Only 50% of the withdrawals from SRS are taxable at retirement.
rdgs,
Vic
Music of the night
normalization of bond yield has begun, it could overshot on the long side, 10y UST at 2.5% within this year looks likely
Ride at your own risk !!!
Newbie
ghost bro,
may i ask how will this impact our 3mth sibor ?
if 10y UST raise from 2.2% to 2.5%, does our sibor also increase by 0.3 ? or many times more ?
Music of the night
it is safe to assume interest rate has bottomed, lock in 5y fixed rate now!!!ghost bro,
may i ask how will this impact our 3mth sibor ?
if 10y UST raise from 2.2% to 2.5%, does our sibor also increase by 0.3 ? or many times more ?
Ride at your own risk !!!
Junior
I shall accumulate reits if it ever drop by another 10%
Junior
Olam usd6.75% looks more interesting as usd is on the rise.
Junior
5yr fixed rate close to 2%.
I do not think it is a good time to do fixed rate now. Lock in only when QE reduced to zero. Not anytime soon imo.
As the World sees QE as a lazy and 'effective' way to boost their failing economy, sibor rate may not breach 2% for a very long time.
Junior
From the Edge magazine.
Risky derivatives make comeback as investors hunt for YIELD. The low interest-rate environment is pushing clients to search for HIGHER YIELD. Investors facing record-low bond yields are increasingly chasing higher returns via complex derivatives, the instruments at the root of the 2008 global financial crisis.
Investors have been making leverage 3 to 6 month bets on some US/HK/SG blue chip stocks via structure products (ELN/FCN/Straddle option/accumulators etc) that offer limited protection on the capital invested.
=========================================================
Foreign bank who sell Risky derivatives structure product are actually what i call “BOOKIE”.
When the investment the foreign banks invested is not good in the next few months. The BOOKIE (foreign banks) will hedge their risk & pass the risk to those ignorant investors searching for HIGH YIELD.
The BOOKIE (foreign banks) may also accept huge positions from RICH client
wanting to hedge his risk. The RICH client may have some insider info that the few stocks he is holding is likely to turn bad in the next few months. So the RICH clients will ask the BOOKIE (foreign bank) to come out a derivatives product with high yield to entice ignorant investors to help him to liquidate it.
Lastly which is the MOST BLACK HEARTED move by the BOOKIE (Foreign banks).
When the BOOKIE (foreign banks) sold the risky derivatives product worldwide to investors & have built up a gigantic huge trillion dollars position. The BOOKIE (foreign banks) will slowly start to short sell the stocks . The risky derivatives product start to fall way below the barrier often set 20% to 30%. Those clients who took leveraging will face margin call. If the cant top up with cash. The BOOKIE (foreign banks) will have to force to sell their stocks. This is the exact real scenarios happen in 2008/09.
So pls do not buy risky derivatives product if you are not a experience investors. For those who still want to go for risky derivatives product to hunt for HIGH YIELD. Pls do small amount & make sure your are familiar with the stocks.
Always remember that the BANK will not help U to make $$$. U need to do your own research & fact finding to make your own $$$.
Look at STI index. It took 7 mths to rise from 3150 to 3400+. It just take 2 weeks Plus to drop back to 3150. This is what I call SLOWLY PUMP UP the stock & A SUDDEN FAST PUMP DOWN. I always says dont follow the herd instinct mentality to buy stocks. Buy base on your FEAR INDEX. Not buy base on "AFRAID to lose out".
Rdgs,
Vic
Music of the night
I did not check 5y fixed rate for a few months, it was like 1.65/1.75 region ... guess 5y fixed is now about 100 bps above 5y SGS
POSB HDB loan 10y cap at 2.5% is now attractive
Even 5y fixed at 2%, not such a bad deal consider lots of 5y corp bond or bank pref shares still yield 3.5-4.5%
Ride at your own risk !!!
Music of the night
@vic ... not just stocks, bonds/reits/EM high yield all deep-fried, unfair to single out only stocks leh, guess all the smart investors already have enough profit and run, leaving retail investors holding the hot potatoes
nikkei best ... 500 pts up down is the new normal
STI goes into negative for 2013 already, will eat into "20% return of 2012", another 5-10% downside
Ride at your own risk !!!
Newbie
OCBC 5.1% NCPS is trading around $100.4 and bank is calling them bank next month at $100 with a dividend payout at 5.1%?
So if I buy now at $100.4, isn't this a 'sure' bet that I make the difference between the 5.1% gain minus $100.4 in about a month's time? Why are people not taking this on?
Can someone help explain. Thanks.
Junior
You need to find out the 5.1% pa, is paying quarterly or half-yearly first.
Newbie
If I am not mistaken, the payout is half yearly and the last payout was in Dec 2012. However, even if the payout is a quarter at 1.275%, this would still be a good deal since the current price is $100.3 (0.3% premium) correct? On top of that, the call back is only about a month.
Junior
Stocks are the most liquid & affordable for most of the retailer investors. Majority of them buy base on herd instinct. They wait & wait until they lose the patience & afraid to lose out the opportunities & buy at a higher price.
Perp bond corrected est 6% to 8% for USD bond .As for short dated straight bond, the drop has not been felt yet as the drop <2%. But for long dated bond >2017, it drop >3%.
I hv reduced my bond holding from S$3m plus to S$2.3m. Year to date, my bond coupon + profit from selling my bond (1% to 6% above my buying price) est S$170k.
I do have ELN on H-share red chip stocks. likely to get converted late June at some lost 8% to 10%. only hv 1 SGX stock.
I seen through hundred of times how the manipulators used MEDIA to build up the optimism phase to entice retail investors to buy at high price. Once it is done. The manipulator will sell the stocks at a fast speed that may caught all of you in panic & confusing mode. The manipulators 100% very sure that majorities of the retail investors will not CUT LOST at the initiall stage as it is too PAINFUL. Most hesitate & cut at a HUGE lost later as they are on margin call.I bought suntec reit @1.69. Sold @1.75. Later shoot up to $2. Now back to S$1.59.
If U do not want to be a loser in stock investment. U need to be very very very patience. Only buy base on FEAR (LOW FLOOR) , not optimism (HIGH FLOOR).
rdgs,
Vic
Junior
It is half yearly. So next coupon is around 2.5%. U have to factor in brokerage fees.
Newbie
OCBC Class B 5.1% Non-Convertible Non-Cumulative Preference Shares
Level (currency) Shares issued Issue price Issue date Listing date (SGX) Liquidation preference
Tier 1 (SGD) 10,000,000 S$100 each 29 July 2008 30 July 2008 S$100
Maturity Dividend Payment dates Credit ratings
Perpetual 5.1% a year (net) 20 June & 20 December Moody's
A3 (hyb) Fitch
A S&P
BBB+
Redemption OCBC Bank may, at its option, redeem in whole, but not in part, the preference shares on:
1. 29 July 2013
2. On each dividend date after 29 July 2013
Lazy Bum
Last payout is 20th June ... and then they recalled the tranche 2 days ago. So the final payout is only 39 days i.e which is 54 cents
Remember the brokerage charges involved. Not much $$ to be made from this
When you have eliminate the impossible, whatever remains, however improbable, must be the truth
Junior
I am hoping to see reits down by another 8-10% back to mid-3rd qtr 2012 price.
Newbie
If I buy today, will I be in time for the half yearly 20th June 2013 payout? If not, then no point.
Junior
downside is limited and with no upside
Newbie
you will not get the dividend on 20 Jun if you buy today.
tks
Lazy Bum
No you wont...XD-ed on 3rd Jun
When you have eliminate the impossible, whatever remains, however improbable, must be the truth
Junior
May borrow Cheap YEN (if it goes USD/YEN<90) to buy AUS denominate bond. There is a risk the currency bet may be wrong side.
1) Telstra Corp 6.25% 04/2015
AU0000TLSHX7 ----> 105.70
2) NAB 6% 02/15/2017
AU3CB0189975 ----> 107.75
3) ANZ 5.875 02/13/2017
XS0745117167 ----> 107.35
4) Goldman Sachs GS 6.35% 04/12/2016
AU300GSGI068 ----> 106.15
5) BNP PARIBAS AUSTRALIA 7.0000 5/24/2016
AU3CB0176295 ----> 108.50
rdgs,
Vic
Newbie
I see. Then no need to waste time. Thanks.
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