BOND THREAD

[princess_morbucks]

I have seen quite a few colleagues retire. Honestly, they look in worse shape after they retired (visibly aged) compared to when still working. I wonder if "retirement" will be a let down when it finally comes. Anyway, there is a shortage of people in my line of work. I think I will work till the official retirement age of 62. Can still take leave to travel/play golf/ski or whatever. 30 days paid leave is enuff for me.

I agree with you.
When we are working, we look forward to retirement.
Initially retirement is fun, after that it becomes boring and stagnant and the mind starts to generate.

I would rather continue working as long as I can, not so much for the love of the job, but to keep up with times and to maintain a sound and active mind.

When one find one's job monotonous, or if one's boss is over bearing, and especially there is no better alternative, then the job becomes a drag.

[cbsh38584]

Just FYI
=====
China Oriental group USD bond 8% Due 18th Aug 2015.
Chinese integrated iron & steel manufacturer, 47%-owned by ArcelorMittal

Investor Breakdown : Fund mgr bought 68%, Retail investors 14%, Bank 10% and Pension & insurance companies 8%.

Moody rating : Ba3
price to buy : around 97-98 (YTM est 9%).
Risk : High

rdgs,
Vic

[dtrax]

Media group Singapore Press Holdings took another step closer to the public listing of its real estate investment trust (Reit) on Tuesday, when it filed a key document with detailed company information for prospective shareholders.

The Reit's preliminary prospectus was lodged with the Monetary Authority of Singapore, ending speculation over the timing of the listing.

The listing will hope to raise between $523 million and $554 million, with an offer of 308.88 million units at between 85 to 90 cents each.

SPH will be injecting its retail malls, including the upmarket Paragon, into the billion-dollar Reit. Under the deal, SPH will sell Paragon and Clementi Mall to the Reit for $2.5 billion and $570.5 million respectively.

[starrynight]

Anyone going for this?

I got the placement invitation from DBS today. Will skip the placement tranche, but I personally feel that the downside is (very?) limited, so might just apply at the public tranche for some petrol money...

OUE Reit draft prospectus also out. Expected slightly more than 7% yield.

Media group Singapore Press Holdings took another step closer to the public listing of its real estate investment trust (Reit) on Tuesday, when it filed a key document with detailed company information for prospective shareholders.

The Reit's preliminary prospectus was lodged with the Monetary Authority of Singapore, ending speculation over the timing of the listing.

The listing will hope to raise between $523 million and $554 million, with an offer of 308.88 million units at between 85 to 90 cents each.

SPH will be injecting its retail malls, including the upmarket Paragon, into the billion-dollar Reit. Under the deal, SPH will sell Paragon and Clementi Mall to the Reit for $2.5 billion and $570.5 million respectively.

[radha08]

I agree with you.
When we are working, we look forward to retirement.
Initially retirement is fun, after that it becomes boring and stagnant and the mind starts to generate.

I would rather continue working as long as I can, not so much for the love of the job, but to keep up with times and to maintain a sound and active mind.

When one find one's job monotonous, or if one's boss is over bearing, and especially there is no better alternative, then the job becomes a drag.

an idle mind is the devils workshop

so better to be poor and work for a living and survival than to be rich and floating in money and thinking of all kind of nonsense things to do

[cbsh38584]

cbsh38584

on the topic of UL.

AIA guarantees 4% for 7 years. break-even is about 10 years or so....

After 7 years, they have certain projections... If the bonus drops to 2%(it is not guaranteed after 7 years)... your cash value will start to fall....

So do monitor after 7 years.... though unlikely it will fall so low....

Cheers

I came to know today that AIA is offering a promotion for UL plan just last week. AIA guarantees 4.2% for 7 yrs ( it was 4%).
U must complete your medical check b4 30th Aug13.


rdgs,
Vic

[toiletsiao]

Anyone going for this?

I got the placement invitation from DBS today. Will skip the placement tranche, but I personally feel that the downside is (very?) limited, so might just apply at the public tranche for some petrol money...

OUE Reit draft prospectus also out. Expected slightly more than 7% yield.

buy OUE better ... they will be cash rich after this execise...if i not wrong they will take back 1.4 billion once they sold mandarin hotel + gallery...they will utlise 750mil out of this 1.4billion to pay down debts...the rest will be paid special dividend....they have so many other assets(prime) on their balance sheet waiting to be unlocked... OUE has more upside than the REIT itself

[starrynight]

Roger TS! Hope you have been well!

Are you still active in the other forum? :0)

buy OUE better ... they will be cash rich after this execise...if i not wrong they will take back 1.4 billion once they sold mandarin hotel + gallery...they will utlise 750mil out of this 1.4billion to pay down debts...the rest will be paid special dividend....they have so many other assets(prime) on their balance sheet waiting to be unlocked... OUE has more upside than the REIT itself

[toiletsiao]

Roger TS! Hope you have been well!

Are you still active in the other forum? :0)

yes i am lol

[Werther]

yes i am lol

Hello toilet

Is it a good time to buy OUE tomorrow or wait a few more days first?. Tks

[phantom_opera]

10y UST at 2.5pc will be the new normal till Dow up another 10pc

[Allthepies]

Hello toilet

Is it a good time to buy OUE tomorrow or wait a few more days first?. Tks

U have until August to buy... Good luck...

[cbsh38584]

TRIKOMSEL
A leading retailer & distributor of mobile phone handsets & mobile services products in Indonesia, with an estimated market share of 30%.

The company is around 78.6% owned by its CEO & President Director Sugiono Wiyono Sugialam and 13.5% by Std Chartered Private Equity.

It is listed on the Jakarta Stock Exchange and has a market
capitalization of close to USD 750 m.

5.25% Trikomsel 2016
ISIN SG55I2992272
Rating N/A
LTV 70%
Indic offer 98.00 (Low @96 to buy on 28th June13)
Indic YTM 6.00

rdgs,
Vic[/quote]

Just Bought Trikomsel SGD Bond 5.25% Due 2016 @97, YTM6.4%. To replace my Petra food 2017 SGD 5% bond which will redeem@103 early Mid Aug 2013. I will hold this short dated bond till maturity in 2016


rdgs,
Vic

[starrynight]

First issuance yesterday:

Issuer
United Overseas Bank Limited
Description:
Subordinated, unsecured, non-cumulative, non-convertible perpetual capital securities
Issuer Ratings:
Aa1 (Moody's) / AA- (S&P) / AA- (Fitch) (All Stable)
EXPECTED ISSUE RATINGS:
Baa1 (Moody's) / BBB (Fitch)
REGULATORY TREATMENT:
Intended to qualify as Additional Tier 1 capital of the Issuer
ISSUE SIZE:
SGD Benchmark
Format
Registered
Tenure
PERPETUAL NC5
Payment
Semi-annual, actual/365 (fixed)
INITIAL GUIDANCE:
5% area
Price
TBD
Issue Date:
TBD
DISTRIBUTION PAYMENT:
Fixed rate, payable semi-annual in arrear, fully discretionary, on a non-cumulative basis
RESET MECHANISM:
If not called by the Issuer, the Fixed Distribution resets at the first call date and every 5-years thereafter at the prevailing 5-year SGD SOR plus the initial margin with no step-up
DIVIDEND STOPPER :
Permitted
LOSS ABSORPTION EVENT:
Earlier of the regulator notifying the Issuer in writing(i) that a write-off is necessary or (ii) of its decision to make a public injection of capital or equivalent support, (in each case) without which the Issuer would become non-viable
WRITE DOWN (PARTIAL ALLOWED):
(i) Upon occurrence of a Loss Absorption Event, cancellation of the accrued distributions and if insufficient, permanent writedown (partial or in full) of the prevailing principal amount
(ii) Write-down amount is ascertained by Issuer (and the Regulator is satisfied) suchthat the amount written-off will be sufficient to ensure that the Issuer ceases to be non-viable
(iii) Write-down pro rata with Parity Tier 1 instruments that include loss absorption features
ISSUER REDEMPTION:
At first call date, 23 July 2018, and any distribution payment date thereafter, subject to regulatory approval
EARLY REDEMPTION:
Upon occurrence of Change of Qualification or Taxation Events, subject to regulatory approval
TERMS:
SGX-ST listing, CDP clearing, SGD 250k denoms, Singapore Law
SELLING RESTRICTIONS:
Reg S, S274/275 SFA
USE OF PROCEEDS:
Intended to allow redemption of the existing Class E Preference Shares, subject to regulatory approval
EXPECTED TIMING:
As early as today
JOINT BOOKS:
UOB / ANZ / HSBC / NOMURA / SCB (B&D) / UBS

[starrynight]

Second issuance yesterday:

ISSUER:
Aspial Corporation Limited
Status:
Direct, unconditional, unsubordinated and unsecured Notes
Rating:
Unrated
Format:
Reg S, S274 & 275 of Singapore SFA
Initial Guidance:
4.75%-5.25% area
Tenure:
3 Years
Issue Size:
TBD
Issue Price:
TBD
Issue Date:
TBD
Maturity Date:
TBD
Payment:
Semi-annual, actual/365 (fixed)
Details:
SGD250K/Multicurrency MTN Programme/Singapore Law/CDP
Listing:
SGX-ST
Sole Bookrunner:
DBS
TIMING:
This week's business
RISK RATING:
P4 (P1 to P5, P5 being the highest)

[bargain hunter]

bro, i dun understand why u skip the placement (which could get u more shares)
and then apply for the public tranche later?

Anyone going for this?

I got the placement invitation from DBS today. Will skip the placement tranche, but I personally feel that the downside is (very?) limited, so might just apply at the public tranche for some petrol money...

OUE Reit draft prospectus also out. Expected slightly more than 7% yield.

[amk]

LOSS ABSORPTION EVENT:
Earlier of the regulator notifying the Issuer in writing(i) that a write-off is necessary or (ii) of its decision to make a public injection of capital or equivalent support, (in each case) without which the Issuer would become non-viable
WRITE DOWN (PARTIAL ALLOWED):
(i) Upon occurrence of a Loss Absorption Event, cancellation of the accrued distributions and if insufficient, permanent writedown (partial or in full) of the prevailing principal amount
(ii) Write-down amount is ascertained by Issuer (and the Regulator is satisfied) suchthat the amount written-off will be sufficient to ensure that the Issuer ceases to be non-viable
(iii) Write-down pro rata with Parity Tier 1 instruments that include loss absorption features

I hope every one really understands what this is , even those seasoned ones.
This means this Tier 1 might be ranked even lower than common stock.
And in the event of loss or ratio breach, you are going to take a hit on the notional itself !
This is something very "unconventional". Be warned.

[cbsh38584]

I hope every one really understands what this is , even those seasoned ones.
This means this Tier 1 might be ranked even lower than common stock.
And in the event of loss or ratio breach, you are going to take a hit on the notional itself !
This is something very "unconventional". Be warned.

You are very knowledgeable. SC says OK. CS says not OK. Maybe that it why it don't allow it to be traded in SGX for retailer to buy small amt. Only priorities or private banking clients min S$250k. The risks of a write down is very slim for SG banks but not 100% guarantee.

rdgs,
Vic

[bargain hunter]

i shall hold back any comments on the weeeeeeeeeeees.

I hope every one really understands what this is , even those seasoned ones.
This means this Tier 1 might be ranked even lower than common stock.
And in the event of loss or ratio breach, you are going to take a hit on the notional itself !
This is something very "unconventional". Be warned.

[amk]

The risks of a write down is very slim for SG banks but not 100% guarantee.

rdgs,
Vic

The point I want to highlight is, a usual "pref share" never has a possibility of having its notional taking a haircut. During crisis, a bond can be traded way below par, but at least officially it is fully 100, and if you hold on to it, when market recovers, it maintains 100. For this one, it means issuer has a right to take a haircut on the par value at many possible situations : 1) if bank wants a capital injection/increase, 2) if a write down of some assets are required (e.g. Some investment went bad and by regulator it must be written off the book), 3) new Basel whatever rule says ratio must be over x% and it falls below, instead of raising more capital it can just take a hit on this; 4) and other possibilities. It does not mean the bank needs to be in really bad shape. I leave this to your imaginations of the possibilities it can use this right.

This is not conventional. This bond is explicitly designed to skirt the regulatory requirement the bank might face, and pass on all the risks to the buyer. As this whole regulatory game is just beginning, even seasoned investors, or some fresh analysts do not understand the risk in it.

[chiaberry]

i shall hold back any comments on the weeeeeeeeeeees.

You have to admit their timing is uncanningly good (in their favour). This "unconventional" Perp bond was actually a sell-out in short space of time. Immediately after they closed the book, it was announced that Moody's had downgraded Singapore banks. So they got this through by the skin of their teeth.

[cbsh38584]

The point I want to highlight is, a usual "pref share" never has a possibility of having its notional taking a haircut. During crisis, a bond can be traded way below par, but at least officially it is fully 100, and if you hold on to it, when market recovers, it maintains 100. For this one, it means issuer has a right to take a haircut on the par value at many possible situations : 1) if bank wants a capital injection/increase, 2) if a write down of some assets are required (e.g. Some investment went bad and by regulator it must be written off the book), 3) new Basel whatever rule says ratio must be over x% and it falls below, instead of raising more capital it can just take a hit on this; 4) and other possibilities. It does not mean the bank needs to be in really bad shape. I leave this to your imaginations of the possibilities it can use this right.

This is not conventional. This bond is explicitly designed to skirt the regulatory requirement the bank might face, and pass on all the risks to the buyer. As this whole regulatory game is just beginning, even seasoned investors, or some fresh analysts do not understand the risk in it.

Thank for your input. My banker did not explain in detail what U hv written. I did not go for it. I prefer short dated bond now.


rdgs,
Vic

[phantom_opera]

I hope every one really understands what this is , even those seasoned ones.
This means this Tier 1 might be ranked even lower than common stock.
And in the event of loss or ratio breach, you are going to take a hit on the notional itself !
This is something very "unconventional". Be warned.

I read some Chinese bonds have the "loss absorption event" clause also ... is this something new out to con the bond investors after Cyprus?

[starrynight]

Maybe flawed logic, but for those IPOs which I'm not confident has significant upside, I'll usually pass on the placement because:
a. the 1% comm payable to the bank eats into the stag margin; and
b. I can see how over-subscribed the placement is before deciding whether to whack the public offer.

bro, i dun understand why u skip the placement (which could get u more shares)
and then apply for the public tranche later?

[starrynight]

Thanks for the explanation. Now I know why it was rated P5 (out of 5) by DBS in terms of risk / investor sophistication requirement.

The point I want to highlight is, a usual "pref share" never has a possibility of having its notional taking a haircut. During crisis, a bond can be traded way below par, but at least officially it is fully 100, and if you hold on to it, when market recovers, it maintains 100. For this one, it means issuer has a right to take a haircut on the par value at many possible situations : 1) if bank wants a capital injection/increase, 2) if a write down of some assets are required (e.g. Some investment went bad and by regulator it must be written off the book), 3) new Basel whatever rule says ratio must be over x% and it falls below, instead of raising more capital it can just take a hit on this; 4) and other possibilities. It does not mean the bank needs to be in really bad shape. I leave this to your imaginations of the possibilities it can use this right.

This is not conventional. This bond is explicitly designed to skirt the regulatory requirement the bank might face, and pass on all the risks to the buyer. As this whole regulatory game is just beginning, even seasoned investors, or some fresh analysts do not understand the risk in it.

[amk]

I read some Chinese bonds have the "loss absorption event" clause also ... is this something new out to con the bond investors after Cyprus?

Quite new, but not because of Cyprus. This is exclusively to banks, and new Basel rules. A lot of changes on treatments on prep shares lead to different classification of capital to which Tier. As a result banks are getting creative ( they are always creative) and created this "loss absorbing" bonds. We even have a name for it. search "Barclays CoCo". At least for that one they pay 7.x%.

Every instrument has a fair price. I'm not saying this instrument is out to con. I'm saying this instrument should pay more.

( non banks issuing this kind of CoCo bond will be worse. At least for banks there are some rules you can see and judge, no matter how you skirt the rule. )

[starrynight]

Moneymax IPO bookbuildng ongoing:

Listing Status: Catalist

Issue Size: 53,800,000 new shares, Comprising;
- 51,300,000 placement
- 500,000 reserve
- 2,000,000 ATM

Issue Price: S$0.30 (tentative)

Enlarged Share Cap: 353,800,000

PER FY12: 18.2x (fully diluted)

Market Cap: S$106.14m

[starrynight]

Oxley bond re-tapped today:

Issuer
Oxley Holdings Limited
Status
Senior, unsecured
Rating
Unrated
Format
Off Issuer's SGD300Million Multicurrency Medium Term Note Programme
Tenure
5NC3
Issue Size
TBD
Coupon for first 3 years :
4.75% p.a fixed s/a, act/365
Step-up Coupon for 4th and 5th year :
6.75% p.a. fixed s/a, act/365
Settlement Date:
25 July 2013
First Call Date:
11 July 2016
Maturity Date
11 July 2018
Reopening Price
100.00% plus accrued interest since 11 July 2013
Financial Covenants:
(i)Consol. Tangible Net Worth ≥S$175mil (until 31 Dec 2015) and ≥S$225mil (from 1 Jan 2016 onwards); and
(ii) (ii) Consol. Total Borrowings / Consol. Total Assets ≤0.75x (until 30 Jun 2016) and ≤0.70x (from 1 Jul 2016 onwards)
Div. Payout Restriction:
Cash dividend payout ratio cannot exceed 25% of Consolidated EBITDA if the Debt/Equity Ratio is more than 4.0 times
Denomination:
SGD250K
Listing
SGX-ST / CDP
Governing Law:
Singapore Law/ Sections 274 and /or 275 of the Singapore SFA
Sole Bookrunner
UOB
Timing
As early as today
Product risk rating
P4 (Sophisticated) ( 1 to 5, 5 being the highest)

** Oxley Reopening SGD 4.75% 5NC3 Notes due 11 July 2018 – Update #1 **

- Oxley announced the reopening of the existing 4.75% 5NC3 Fixed Rate Notes due 11 July 2018 on the back of reverse enquiry
- Reopening price at 100.00% plus accrued interest since 11 July 2013

[chiaberry]

Quite new, but not because of Cyprus. This is exclusively to banks, and new Basel rules. A lot of changes on treatments on prep shares lead to different classification of capital to which Tier. As a result banks are getting creative ( they are always creative) and created this "loss absorbing" bonds. We even have a name for it. search "Barclays CoCo". At least for that one they pay 7.x%.

Every instrument has a fair price. I'm not saying this instrument is out to con. I'm saying this instrument should pay more.

( non banks issuing this kind of CoCo bond will be worse. At least for banks there are some rules you can see and judge, no matter how you skirt the rule. )

That's why I said the weeee's timing is good on their bond. If they issue now (after Moody's downgrading), their bond will have to pay more.

[jeaprp]

Thank for your input. My banker did not explain in detail what U hv written. I did not go for it. I prefer short dated bond now.


rdgs,
Vic

UOB 4.9% perp $1.004 transacted
make kopi $ nia