BOND THREAD

[cbsh38584]

A high-yield investment product offered by China's largest bank , ICBC is facing imminent default, an event that will cost investors millions and raise questions about the country's banking system.

I think ICBC is the book runner for this high yield investment product. So better be extra careful buying high yield investment product especially those related commodities & high technologies like Solar power in China.

SG blue chip bond is much stable & safe. These are more for low risk investors who are OK with 2-4% yield depending on the tenor (YTM).

Straight bond
=========
Suntect reit
OUE
Kepland
City development
capitaland
Kepcorp
capitalmall Asia
etc etc

You can refer to the expert from Tradehaven bond website. He is very hardworking in providing all the bond price issued in 2011/2012/2013.


rdgs,
Vic

[cbsh38584]

NEW ISSUE: SUNTEC REIT SGD 6YR REG S NOTES: PRICE GUIDANCE 3.35%
Issuer: Suntec REIT MTN Pte. Ltd.
Guarantor: Unconditionally and irrevocably guaranteed by HSBC Institutional Trust Services (Singapore) Limited (in its capacity as trustee of Suntec REIT)
Issuer Rating: Baa2 Stable (Moody’s)
Expected Issue Rating: Baa2 (Moody’s)
Status: Senior Unsecured
Format: Registered form, Reg S off US$1.5bn EMTN Programme
Tenor: 6 Year
Size: SGD Benchmark
Price Guidance: 3.35% (the number)
Coupon: Fixed Rate, semi-annual
Details: SGD250k x SGD250k, English Law, SGX Listing, CDP
UOP: General corporate purposes of Suntec REIT and refinancing of existing borrowing, including facility in which ANZ, DBS and Standard Chartered Bank is one of the lenders

[starrynight]

Today's issuance:

Company Name :
Puma Energy
Business :
Leading globally integrated midstream and downstream, retail and distribution oil group engaged in the supply, storage and distribution of refined oil products
Use of Proceeds :
Repay existing indebtedness and for general corporate purposes
Issuer:
Puma International Financing S.A.
Security Type:
Senior Notes
Currency:
US$
Principal Amt:
750,000,000
Initial Price Guidance:
~6.75% area
Maturity:
2021 (7 years)
Call Protection:
NC3, 50%, 25%
Corp Ratings:
Ba2 (Moody's) / BB (Fitch)
Issue Ratings:
Ba3 (Moody's) / BB (Fitch)
Min Denom
$200k + $1k
Distribution:
RegS / 144A
Governing Law:
New York Law
Listing Application:
Luxembourg Stock Exchange
Joint Global Coordinators :
Goldman Sachs International, Societe Generale
Joint Bookrunners: :
GSI, SGCIB, ING, Natixis, RMB, Standard Bank
Settlement :
via Euroclear
Indic LV:
50%
Risk Rating:
4

[cbsh38584]

May switch out one or two still profitable bond out to equities if the STI correction is very deep. If not shall remain in bond.

rdgs,
Vic

[cbsh38584]

Just FYI only.


Some advice from tim Condon ( former world bank & Morgan Stanley economist ) , head of research for Asia at ING. Forget about equities & go for bonds. US $ emerging market bonds & high yield credits will probably deliver the best returns in the year ahead – possible as much as 10%. Even local currency will probably likelyto perform better than equities.

“The economic fundamental this year are very bond market positive & basically, equities indifferent,” He says. “My view is that the rerating in developed market equities is over & weare left with economic fundamentals that may be OK, but are not great, &growth has slowed marketly since the global financial crisis, which is good for Bonds.


If my CPF OA can buy very good quality Perp bond yield 6% or straight bond like Keppel corp , CDL, Kepland etc. I will immediate go for it. Don't know why they allow CPF $ to buy lousy quality approved CPF S-chip stock. Many investors include me (stop buying S-chip since 07) got burnt by it.

=============================================
Eratat (S-chip) approved CPF stock. It was suspended for
(A) DEFAULT ON BOND INTEREST PAYMENT

(B) SUSPENSIon OF TRADING PENDING VERIFICATION OF GROUP’S CASH BALANCE

© SUSPENSION OF CEO AND APPOINTMENT OF INTERIM CEO

FYI, Eratat was awarded Runner-up of the “Most Transparent Company Award 2013, Mainboard Small Caps Category” by the panel of judges of SIAS Investors Choice.

When come to investing.NEVER NEVER trust anybody. TRUST NOBODY & Be very patience. Only trust Fear. Fear is your ONLY "true friend" it can be TRUSTED.

HERD investing & GREED are both GUARANTEE for failure. Very worst case hopeless investors will bring financial disasters to it family members.

rdgs,
Vic

[Laguna]

dear ALL

I have disappeared from the forum for some time.
I find it relatively difficult to spot good investment opportunities. many have came to me for participating in crowd funding with very attractive return, too good to be true. some angel funds also look scary me to me.

在此我跟这些没見过面的朋友拜个年
祝福大家
财源滚滚
万事如意
心想事成
身体健康
大吉大利
马到功成
百射百中

[Werther]

[QUOTE=cbsh38584;460406]Just FYI only.


Some advice from tim Condon ( former world bank & Morgan Stanley economist ) , head of research for Asia at ING. Forget about equities & go for bonds. US $ emerging market bonds & high yield credits will probably deliver the best returns in the year ahead – possible as much as 10%. Even local currency will probably likelyto perform better than equities.

“The economic fundamental this year are very bond market positive & basically, equities indifferent,” He says. “My view is that the rerating in developed market equities is over & weare left with economic fundamentals that may be OK, but are not great, &growth has slowed marketly since the global financial crisis, which is good for Bonds.


If my CPF OA can buy very good quality Perp bond yield 6% or straight bond like Keppel corp , CDL, Kepland etc. I will immediate go for it. Don't know why they allow CPF $ to buy lousy quality approved CPF S-chip stock. Many investors include me (stop buying S-chip since 07) got burnt by it.

=============================================
Eratat (S-chip) approved CPF stock. It was suspended for
(A) DEFAULT ON BOND INTEREST PAYMENT

(B) SUSPENSIon OF TRADING PENDING VERIFICATION OF GROUP’S CASH BALANCE

© SUSPENSION OF CEO AND APPOINTMENT OF INTERIM CEO

FYI, Eratat was awarded Runner-up of the “Most Transparent Company Award 2013, Mainboard Small Caps Category” by the panel of judges of SIAS Investors Choice.

When come to investing.NEVER NEVER trust anybody. TRUST NOBODY & Be very patience. Only trust Fear. Fear is your ONLY "true friend" it can be TRUSTED.

[B]HERD investing & GREED are both GUARANTEE for failure. Very worst case hopeless investors will bring financial disasters to it family members.[/


Hi Cbsh

Gong Xi Fatt Choy to you.

Thanks for the reminder and advice.

Hope you make lots of $$ in your investment.

[cbsh38584]

Hyflux Perp bond 5.75%
===============
Apply one lot in CS & Std C bank. Manage to get allocation only from Std C.


The risk for Hyflux is that it is a very highly leveraged company. The reason I apply Hyflux Perp bond is because of Temasek & SG government is paranoid about having enough water supply from our own reservoir & not to depend too much from M'sia.

rdgs,
vic

Despite the STI market big correction to below 3000. Hyflux Perp bond 5.75% to buy now is even higher than the IPO 100. To buy now @100.75. Furthermore, some banks give a high LTV of 60%. Local banks usually give zero LTV for Perp Bond.

Overall bond portfolio only drop 1-3% as since May13. But the Reits counter have dropped more than 20%. Every month, ave 16k income base on $3m with leveraging. Hopefully by 2016 or 2017, will switch out some of my bond holdings & start to look into another property.

Also looking into Aus bond . Will borrow USD and convert to Aus to buy Aus bond if Aus/USD drops to 0.80 to 0.85. Now 0.885. Only buy investment grade Aus bond. No junk bond. Aus bond min Aus$50k to buy.


rdgs,
Vic

[Royston8H]

Why bonds and not alternative investment for property ?

[princess_morbucks]

• • Accelerating global economic growth should support equities and high yield bonds in 2014

We expect global GDP growth to accelerate to 3.4% in 2014. US private consumption is expected to pick up, while inflation stays below the Fed's 2% target over the next six months. QE3 will come to an end by 4Q14, but we do not foresee the first rate hike before mid-2015. The eurozone should grow as the fiscal drag abates further, while China's growth stabilises above 7.5%.

Source: CIO Wealth Management

http://www.btinvest.com.sg/system/as...794%5B1%5D.pdf

[princess_morbucks]

Hedge funds will appear more attractive in 2014. We believe the Fed can successfully withdraw from quantitative easing this year without harming the US economy. We remain overweight US and eurozone equities, along with US high yield credit.

Source: CIO Wealth

http://www.btinvest.com.sg/system/as...n_EN_final.pdf

[cbsh38584]

Why bonds and not

alternative investment for property ?

If I take an assured 12% pa return of such UkSIPP approved or cpf approved equivalent german co development project for 2yrs locked in as an example,

500k × 0.12 ×2 = 120k profit (other bonus put aside) equivalent to double of anavg worker annual pay?

I wrote a review here at http://www.propertyrichesprogram.com...al-gmbh-reviewbecos I love the timely payout for many rounds of such projects n I dont justtalk without yrs of such investing experience. I wont worry if it is risky. Ijust think when it is the right to re enter private property market withconfidence.


=============================================
Why bond ?

Central China real estate 10.75% SGD three year bond due 2016. The largest property developer in Henan. 27% own by SingaporeCapitaLand which is in-turn 39.5% owned by Temasek.

Buy S$1m of Central China real estate 10.75% SGD bond due 2016.
LTV 60%. Capital need is 40% of S$1m = $400k.
Loan 600k assume @1.5% = S$9000 per year interest.

Gross Coupon/yr for S$1m = 10.75% X S$1m = S$107,500/year.
Nett Coupon/yr = S$107,500 minus S$9000 = S$98500.
Nett coupon in % = S$98,500/S$400,000 = 24.6%.

1st year = S$98500 (after minus loan interest of 1.5%)
2nd year = S$98,500
3rd year = S$98,500
========================================
TL coupon for 3 year = S$295,500 using only S$400k capital
========================================

rdgs,
Vic

[cbsh38584]

CapitaMall Trust launches retail bonds paying 3.08% a year

CapitaMall Trust Management said the seven-year bonds carry a fixed interest of 3.08 per cent per year. Payments will be made every six months, on Feb 20 and Aug 20 each year until 2021, with the first payment to be made in August this year.

The trust is initially planning to offer up to $200 million of bonds. Up to $150 million of the bonds will be offered to the public, while the rest will be placed with institutional and other investors.




rdgs,
Vic

[Royston8H]

Well 10.75% returns is generally much higher than the usual singapore related bonds. That's pretty good for bonds really.
3yrs locked in is a bit long though.

Cash on cash return of 24.6% pa is assumed with the bank loan leverage. If leverage component comes into picture, risk arises. Can we assume we will always get 60% ltv approval n fixed interest rate of only 1.5% pa?

Nevertheless if I also leverage the same via bank loan to get 60% ltv of 1 mil,

I will earn [1mil×0.12 -600×0.015] = $111,000 ×3=333,000 profit for 3yrs which is equivalent to 111,000/400000= 28% pa asides other bonuses for german co development , uk sipp approved projects.

both cases are assumed with assured returns.

The question is better risk reward ratio for germany vs china.
There is much room for improvement in europe right now.


Where did li jia cheng , asia richest man dumped his asset n invest into?

If I take an assured 12% pa return of such UkSIPP approved or cpf approved equivalent german co development project for 2yrs locked in as an example,

500k × 0.12 ×2 = 120k profit (other bonus put aside) equivalent to double of anavg worker annual pay?

I wrote a review here at http://www.propertyrichesprogram.com...al-gmbh-reviewbecos I love the timely payout for many rounds of such projects n I dont justtalk without yrs of such investing experience. I wont worry if it is risky. Ijust think when it is the right to re enter private property market withconfidence.


=============================================
Why bond ?

Central China real estate 10.75% SGD three year bond due 2016. The largest property developer in Henan. 27% own by SingaporeCapitaLand which is in-turn 39.5% owned by Temasek.

Buy S$1m of Central China real estate 10.75% SGD bond due 2016.
LTV 60%. Capital need is 40% of S$1m = $400k.
Loan 600k assume @1.5% = S$9000 per year interest.

Gross Coupon/yr for S$1m = 10.75% X S$1m = S$107,500/year.
Nett Coupon/yr = S$107,500 minus S$9000 = S$98500.
Nett coupon in % = S$98,500/S$400,000 = 24.6%.

1st year = S$98500 (after minus loan interest of 1.5%)
2nd year = S$98,500
3rd year = S$98,500
========================================
TL coupon for 3 year = S$295,500 using only S$400k capital
========================================

rdgs,
Vic

[cbsh38584]

Well 10.75% returns is generally much higher than the usual singapore related bonds. That's pretty good for bonds really.
3yrs locked in is a bit long though.

Cash on cash return of 24.6% pa is assumed with the bank loan leverage. If leverage component comes into picture, risk arises. Can we assume we will always get 60% ltv approval n fixed interest rate of only 1.5% pa?

Nevertheless if I also leverage the same via bank loan to get 60% ltv of 1 mil,

I will earn [1mil×0.12 -600×0.015] = $111,000 ×3=333,000 profit for 3yrs which is equivalent to 111,000/400000= 28% pa asides other bonuses for german co development , uk sipp approved projects.

both cases are assumed with assured returns.

The question is better risk reward ratio for germany vs china.
There is much room for improvement in europe right now.


Where did li jia cheng , asia richest man dumped his asset n invest into?

I am curious & may find time to know more about your alternative investment. I am not sure whether the bank will give LTV (60%) for this alternative investment.

Can I sell anytime I want ?
If yes, it is liquid enough for me to find buyer easily.

rdgs,
Vic

[Royston8H]

See http://www.propertyrichesprogram.com...l-gmbh-review/Dolphin Capital Review Video by SIAS.

German Project #15 (with 14% returns per year for a two years locked in) was launched and completed in Singapore last month.

Frankly speaking if given a choice, i would prefer just only one year locked in and two years is my maximum limit. The reason is simple. I want to see money roll in money roll out so that my bullets are always ready for the new property cycle to come.

Btw, i dont really look for buyers to buy over my own investment or otherwise it defeats the purpose of me to invest.

For 60% LTV bank leverage, i would prefer to apply this leverage at the right time directly on actual private property purchase. TDSR is still a dangling issue now.

Such alternative investment is just a very good interim short term investment vehicle to snowball my money. Definitely not to apply any form of bank loan leverage for such alternative investment, bonds or other forms of non-asset protection investments.

I am curious & may find time to know more about your alternative investment. I am not sure whether the bank will give LTV (60%) for this alternative investment.

Can I sell anytime I want ?
If yes, it is liquid enough for me to find buyer easily.

rdgs,
Vic

[amk]

to cbsh, did you go for the new perp 7.5% SGD bond closed yesterday ? no funding possible.

[cbsh38584]

to cbsh, did you go for the new perp 7.5% SGD bond closed yesterday ? no funding possible.

.

I have enough of my S$3m bond holding borrowing >US$1m although I still have est US$500k collateral (against my total bond holding) given by CS to invest. It is enough for me as for now. I also do not feel comfortable that CS keep increasing the collateral $$$ amount for me to invest.

For this Perp, CS gives 60% LTV. But all local bank give ZERO.

rdgs,
Vic

[amk]

UBS also 0. CS very nice to you

[cbsh38584]

UBS also 0. CS very nice to you

CS is one of the book runner. That is why high LTV is given. I think both parties "benefited". No recommendation for this Perp from CS.

rdgs,
vic

[DMCK]

CapitaMall Trust launches retail bonds paying 3.08% a year

CapitaMall Trust Management said the seven-year bonds carry a fixed interest of 3.08 per cent per year. Payments will be made every six months, on Feb 20 and Aug 20 each year until 2021, with the first payment to be made in August this year.

The trust is initially planning to offer up to $200 million of bonds. Up to $150 million of the bonds will be offered to the public, while the rest will be placed with institutional and other investors.




rdgs,
Vic

Why are they rising fund?

[princess_morbucks]

Why are they rising fund?

http://sg.finance.yahoo.com/news/cap...002100667.html

Our first series of 2-year retail bonds issued in 2011 under our S$2.5 billion retail bond programme received strong interest from retail investors and was about 1.9 times subscribed. It has since been fully repaid last year.........

This bond offering will enable CapitaMall Trust to diversify sources of funding."

[cbsh38584]

to cbsh, did you go for the new perp 7.5% SGD bond closed yesterday ? no funding possible.

Chinese steelmaker China Oriental Group Co Ltd USD Bond 8% due Aug 2015. The USD bond was issued in Aug 2010.

ArcelorMittal , the world's largest steelmaker, owned 47 percent of China Oriental group.

China Oriental Group Company Limited is an investment holding company. The Company, along with its subsidiaries, is engaged in manufacture and sales of iron and steel products. It also manufactures cold rolled sheets and galvanized sheets. It operates in two segments: Iron and steel, and real estate.....

May13 - price was 107.
Feb14 - price drops to 99.50

The yield is very attractive & it is a short dated bond due Aug15 (1.5 yrs).
Min US$200k.
Yearly coupon US$200kX8% = US$16k
LTV 65%
So cash needed is only 200kX0.35= US$70k.
Borrowing cost + custodian fee = 1.5% = 140k X1.5%= US$2100/yr
Nett return US$(16,000 - 2100) = US$13,900.
Nett return % = 20%


Fitch Downgrades China Oriental to 'BB-'; Outlook Stable on 29 Jan14
Moody's downgrades China Oriental to B1; outlook negative on 13 Jan14


*** Principal Asia Pacific High Income Bond Fund invests primarily in a portfolio of high grade and high yield bonds. China Oriental Group Co Ltd-8% bond is one of their top ten holdings.

=============================================
I am not sure whether to take the risk to buy this bond. Still undecided as commodities sector are very volatile. Need to check with Std chart as well as UBS on this bond outlook. A buy at cs.

rdgs,
Vic

[starrynight]

Some recent bond issuances in the last week or so:

Issuer: Central Plaza Development Ltd.
Guarantor: International Financial Center Property Ltd.
Keepwell Deed: Beijing Capital Land Ltd. (the “Company” or “Beijing Capital Land”)
Letter of Support Provider: Beijing Capital Group Ltd. (100% directly owned by Beijing SASAC)
Company Ratings: Ba2 / BB+ (Moody’s/Fitch)
Exp Issue Ratings: Ba3 / BB+ (Moody's/Fitch)
Format: Reg S registered off MTN programme
Issue Size: CNH Benchmark
Tenors: 3y | 5y
Initial Price Guidance: 3-year: 5.875% area / 5-year: 6.875% area
Sole Global Coordinator: HSBC
Joint Bookrunners: HSBC, BOCHK, SCB
B&D: HSBC
Timing: As early as today
Details: CNY1,000,000 X CNY10,000 denoms, SEHK listing, Hong Kong Law
Clearing: CMU with linkage to Euroclear and Clearstream
RIsk Rating: 4N
Indicative LV: 55%

[starrynight]

Issuer: Trafigura Beheer B.V.
Securities: SGD Perpetual Resettable Step-Up Subordinated Securities
Rating: Not rated
Status: Subordinated unsecured
Maturity: Perpetual NC5
Size: SGD benchmark
Initial Price Guidance: Mid 7% Area
Call Options: 2019 and on any interest payment date thereafter at par
Interest Rate: Fixed rate of [TBC]% until 2019, reset thereafter every 5 years based on 5yr SGD swap offer rate plus initial credit spread
Step Up: 100 bps in February 2024
Optional Interest Deferral: Optional, subject to certain conditions including non-payment of dividends in the preceding 12 months; cumulative and compounding
Special Event Call Options: Special issuer redemption right for withholding tax event and minimal outstanding amount at par, and income tax deduction and accounting events at 101%
Governing Law: English (Dutch law for subordination provisions)
Offering Restrictions: Reg S, S274 & 275 of Singapore SFA
Interest Payments/Basis: Semi-annual / Actual/365 (Fixed)
Denoms: SGD250k X SGD250K
Listing: SGX-ST
Clearing: Euroclear / Clearstream
Use of Proceeds: General corporate purposes and investments
Joint Global Coordinators and Active Bookrunners: CS, DBS Bank Ltd.(B&D)
Bookrunners: OCBC, SCB
Timing: This week’s business, as early as today
Risk Rating: 5C
LV: 65%

[starrynight]

Snoozer:

ISSUER:
National University of Singapore
EXP ISSUE RATING:
Aaa Stable (Moody's)
SERIES:
3
FORMAT:
S274 & 275 and Reg S Bearer, Fixed Rate Notes (off Issuer's S$1bn Multicurrency MTN Programme)
STATUS:
Fixed Rate, Senior Unsecured
Price Guidance:
Coupon: 1.708%
Issue Price: 100
TENOR:
5 Years
ISSUE SIZE:
S$250 mil
ISSUE DATE:
13-Feb-14
MATURITY DATE:
13-Feb-19
LISTING :
None
DETAILS:
S$250k x S$250k / MTN Prog / Singapore Law / CDP
SOLE LEAD MANAGER

& BOOKRUNNER:
UOB
RIsk Rating:
1N
LV:
Indicative 85%

[amk]

I am not sure whether to take the risk to buy this bond. Still undecided as commodities sector are very volatile. Need to check with Std chart as well as UBS on this bond outlook. A buy at cs.

hi vic, USD high yield bonds are plenty. It is the SGD high yield bonds that are rare. that's why I asked you.

for this one you quoted, there are plenty of market talk that some shadow bank product (related to a coal miner) going to default, ppl are shunning.

[amk]

Issuer: Trafigura Beheer B.V.
Securities: SGD Perpetual Resettable Step-Up Subordinated Securities
Timing: This week’s business, as early as today
Risk Rating: 5C
LV: 65%

this is the one I asked vic abt. Already closed 2 days ago. small size finished in one day.

[cbsh38584]

this is the one I asked vic abt. Already closed 2 days ago. small size finished in one day.

.

I am aware of it. I guess I will not be GREEDY to invest in commodity related high yield bond although the chances of default is low.

Will wait patiently for Aus/USd to drop around 0.80 to 0.85 (may not happen) & start to look into investment grade non-commodity Aus bond to diversify away from EM bond.

rdgs,
Vic

[starrynight]

Assuming we are referring to the same bond, some info is here: http://www.zerohedge.com/news/2014-0...trust-defaults

hi vic, USD high yield bonds are plenty. It is the SGD high yield bonds that are rare. that's why I asked you.

for this one you quoted, there are plenty of market talk that some shadow bank product (related to a coal miner) going to default, ppl are shunning.