BOND THREAD

[Leeds]

According to the RM. as long as it comes with loss absorption features. It is considered a Coco. As for the not the usual European
bank coco bond. I am not sure & U need to ask your RM.

Deal size is S$750m. Final books were in excess of S$2.4B. I did not apply as the borrowing cost in SGD is too expensive.
Around 2.3 to 2.5%. Used to be 1.1% to 1.3% for SGD loan b4 2015.

According to its prospectus, UOB's new bonds are AT1s, which are the most subordinated tranche of bank bonds. UOB's AT1s are perpetual in nature (and thus have no firm maturity date), and have loss absorption features which may entail a write-down of principal if MAS decides that UOB is no longer viable (or requires a public sector bail-out).

In this sense, it is not a coco bond and there is no conversion to ordinary shares should the bank no longer become viable. There will probably be a haircut to the principal if MAS so decides.

[Leeds]

MAY 12, 20165:50 AM
Singapore

THE local bond market is sizzling as interest rates slide. The latest to join the rush were two bank issues on Wednesday which clinched combined orders of almost S$4 billion.

United Overseas Bank sold a new Basel III perpetual non-call 5 perpetual 4 per cent coupon, tightened from initial 4.25 per cent guidance after it got over S$2.4 billion orders. The bank is expected to issue S$750 million of bonds.

UOB's transaction represents the largest subordinated bank deal since its last Tier 1 deal done back in 2013 and the largest order book for any transaction in all the SGD market for 2015 and 2016, said Sean Henderson, HSBC's Asia-Pacific deputy head of debt capital markets.

"The fact that they managed to achieve this in a busy market with competing supply is testament to the strength of the UOB name and the increasing sophistication and depth of the investor base," said Mr Henderson. Particularly pleasing has been the strength of the institutional order book, with significant demand from insurers, he said.

Societe Generale is also issuing a new Basel III 10-year non-call 5 issue at 4.3 per cent, tightened from initial 4.5 per cent guidance after it had S$1.5 billion orders. The bank is expected to print S$350 million to S$400 million of bonds. Non-call 5 means the issuer will not call or redeem the bonds before year five.

"After a jittery start to the year in the first quarter, we have started to see risk appetite among investors came back strongly, and it has been carried over into this quarter, said Elaine Ngim, head of fixed income, Asia, Union Bancaire Privée.
"Today's a bit special because both are banks," said Terence Lin, assistant director, bonds and portfolio management, iFAST Corporation.

Many recent issues have come from real estate developers and been dominated by private bank investors. Last week, a Frasers Hospitality Reit S$100 million 4.45 per cent issue had S$500 million orders, with private banks taking 65 per cent of the transaction. On Tuesday, G8 Education's three-year S$270 million 5.5 per cent issue also had S$500 million orders with private bank investors accounting for 98 per cent.

Interest rates have stabilised, and the USD/SGD is showing more stability, said Mr Lin. Since March, the Singapore dollar has ranged from S$1.38 to S$1.34, recovering from the January low of S$1.44.

As investors pile in, bond prices are at a high. The Markit iBoxx Singapore corporates return index hit a record 116.0115 on May 10, up 2 per cent year to date.

Samuel Chan, Standard Chartered Bank's executive director, bond syndicate, said private bank sentiment has been buoyant and those who have been under-invested in bonds want to rebalance their portfolio towards high quality assets.

"The bond market has stabilised a fair bit and hence you see more supply coming out," said Clifford Lee, DBS Bank head of fixed income. This trend should continue if the market continues to hold up, he said.

Interest rates have been sliding since the beginning of the year. The five-year swap offer rate (SOR) stood at 2.6 per cent in January, fell to 2.1 per cent late last month and was on Wednesday morning at 1.97 per cent, noted Mr Lin.

The two bank bonds are priced off the five-year SOR.

Todd Schubert, Bank of Singapore's head of fixed income research, said there are several factors driving the recent resurgence in SGD bond issuance.

"Perhaps the most important is a return to the 'lower for longer' belief in interest rates which is an ideal climate for fixed income investment," he said.

While earlier in the year, forecasts were suggesting two or even three rate hikes for 2016 by the US Federal Reserve, current consensus estimates are close to zero for a rate hike next month and only 50/50 by year-end, said Mr Schubert.

"Secondly, cross-currency swap rates make it more cost effective for issuers in currencies such as the euro to issue in SGD and then swap back into euro," he said, referring to Societe Generale's deal.

Year-to-date SGD bond volumes are up 16 per cent to S$8.2 billion.

Said Neel Gopalakrishnan, Credit Suisse Private Banking's Asia-Pacific, emerging markets bond analyst: "Market conditions are favourable for high quality issuers as they can issue bonds at relatively low yields. In our opinion, current valuations of high grade bonds are relatively expensive, driven more by the limited supply of new bonds."

Still investors are discerning and the demand is for quality and familiar credit.

"Risk appetite is still low as credit quality is still a concern for investors in the emerging market space due to economic and political developments," said Mr Gopalakrishnan.

DBS's Mr Lee said there are more higher secondary market activities and more constructive discussions on new deals.

"We are by no means out of the woods, markets are still choppy and cautious but the tone is much better than at the start of the year and hence you see more deals surfacing," he said.

"But as you can see, the new issues are still primarily from repeat issuers and bigger companies," he said, though he is hopeful that there will be issuers from industries aside from banks and real estate coming soon.

Refinancing is of course the other driver for more transactions. Devinda Paranthanthri, UBS Wealth Management bond strategist, noted that recent issuance has picked up due mostly to the refinancing of existing debt and overseas expansion plans of corporates.

In addition, banks have returned to the market to issue subordinated debt, he said.

A UBS report shows that about S$23 billion of bonds will mature over the next two years.

[jeaprp]

UOB trading about 100.70
Soc Gen 100.05

[Leeds]

UOB trading about 100.70
Soc Gen 100.05

UOBNC5Perp 4% is more sought after than Soc Gen in Singapore. Latest quote was 100/101. Should be able to hit 101/102 the next few days before debut on 18 May.

[email protected]% is doing at 102.12.

[cbsh38584]

UOBNC5Perp 4% is more sought after than Soc Gen in Singapore. Latest quote was 100/101. Should be able to hit 101/102 the next few days before debut on 18 May.

[email protected]% is doing at 102.12.

UOBSP 4.750% Perpetual Corp (SGD) price @102+
UOBSP 4.900% Perpetual Corp (SGD rpice @103+

UOBSP 3.500% 22May2026 Corp (SGD) straight bond price @102.5+


New issue. National bank of Australia 4.3% May2028 Corp (SGD bond ).
Book runner DBS / OCBC

[jeaprp]

NAB can apply?

[Leeds]

NAB can apply?

This is an investment grade bond so it should be safe bearing in mind that all banks now issue bonds under Base III with lost absorption after the financial meltdown in the US.

Demand should be good and likely to be less than 4.3%

[Leeds]

Latest prices for the 3 banks:

UOB 4% Perps issued 100.00 - now 100.55 / 101.00
NAB 4.15% 2028 issued 100.00 - now 99.90 / 100.30
SocGen 4.3% 2026 issued 100.00 - now 100.125 / 100.55

[jeaprp]

nil allocation for NAB

[Leeds]

nil allocation for NAB

It is not easy to be allocated for good IPO bond unless your relationship with the bond dealer or RM is very good. Bond trading is OTC so it is not transparent at all.

[Leeds]

nil allocation for NAB

If you are looking at retail bond, Perennial 4.55% via Perennial Treasury quoted on SGX looks undervalued. Perennial is a sound company with the least debt and least debt serving ratio among all listed real estate companies. It is more toward commercial real estate unlike many others with huge exposure to residential.

Many retail investors (aunties and uncles) bought Oxley and Aspial for their higher yield not knowing that these companies are highly geared and huge exposure to residential. In the bond market, their bonds are considered as junk bonds.

Perennial while not graded is much more sought after in corporate market. The Perennial 4.55% is currently traded between 0.998 to 1.001 because it was only listed two weeks ago. With Oxley and Aspial offering higher coupons and capturing most of the retail markets, Perennial 4.55% looks highly undervalued.

Since it is a retail bond, you can buy through your normal stock broker min 2000 units. If you missed the Perennial 4.9% (corporate), you could buy into its 4.55% retail at prices between 0.998 to 1.003. The yield will only fall further (price higher) in the coming months. You can also just keep the bond for coupon at 4.55% pa.

[cbsh38584]

CPF - As markets crumbled, it paid to be Singaporean in 2015
========================================================================
[B]CPF fund outperformed the markets in 2015, but you're probably not allowed in. Unless you're Singaporean or near enough.

Singapore's Central Provident Fund (CPF), a mandatory retirement savings plan open only to the country's citizens and permanent residents, offered its usual, steady 2.5 percent-to-5 percent payouts, depending on the nature of members' balances.

But that compares with an essentially flat S&P 500 year-to-date and a near-15 percent drop in the Singapore Straits Times Index over the same period. Other assets haven't done well either: The SPDR Barclays High Yield Bond Exchange Traded Fund (ETF) has mirrored a tough year for junk bonds, dropping more than 12 percent year-to-date.

Singapore's private residential property prices have ticked lower as well, falling 1.3 percent on-quarter in the third quarter after slipping 0.9 percent in the previous quarter.

All of these factors made the CPF a much more attractive prospect that one might have imagined, for those eligible to save with it.

Leslie Shaffer is a senior writer at CNBC.com
Dated 30th Dec 2015

---------------------------------------------------------------------------------------------------------------------------------------------For those close to age 55 or at age 55 & have already met the min sum RA =$161k & Medisave acct $49.8k. You should not put your emergency fund in a local bank as Fixed D earning 1.6 to 1.9% .


You should switch your emergency from Fixed D to CPF which earns between 2.5% to 4%. Treat your CPF acct as "CPF saving bank" just like POSB saving bank (interest 0.3%) .The only problem is that you need to go to CPF board to take a form or go online to withdraw the EXCESS (after meeting RA $161k & MA =49.8k). I am suggesting to CPF board to have a CPF ATM card
for CPF member to draw the CPF EXCESS money through ATM mlc & allow more frequent withdrawal.

FYI,try not to pay your housing mortgage loan with 100% CPF money. Maybe 50% cash & 50% cpf . U can change the CPF payment allocation (any % U want) through CPF online. If you really can use 100% cash for your mortgage loan. It will be the best.

-------------------------------------------------------------------------------------------------------------------------------------------
Asset allocation tgt
1 HDB & 1 condo (3 bedder)

CPF "BOND" - Tgt $1m by age 60 through cash contribution (max 37.7k per year). Last level of defence in case I screw up my investment

Corporate bond for income - 10k to 12k per mth

Buy reit during crisis. Bought SPH reit (No penny stock & no frequent trading). Looking into US stock like Apple @ US$80-85.

Some FX PATIENCE trade - DCI or FX option - Only trade when there is a fear. Eg Aus vs SGD. Always invest when Aus <SGD or CAD <SGD

[cbsh38584]

CPF - As markets crumbled, it paid to be Singaporean in 2015
========================================================================
[B]CPF fund outperformed the markets in 2015, but you're probably not allowed in. Unless you're Singaporean or near enough.

Singapore's Central Provident Fund (CPF), a mandatory retirement savings plan open only to the country's citizens and permanent residents, offered its usual, steady 2.5 percent-to-5 percent payouts, depending on the nature of members' balances.

But that compares with an essentially flat S&P 500 year-to-date and a near-15 percent drop in the Singapore Straits Times Index over the same period. Other assets haven't done well either: The SPDR Barclays High Yield Bond Exchange Traded Fund (ETF) has mirrored a tough year for junk bonds, dropping more than 12 percent year-to-date.

Singapore's private residential property prices have ticked lower as well, falling 1.3 percent on-quarter in the third quarter after slipping 0.9 percent in the previous quarter.

All of these factors made the CPF a much more attractive prospect that one might have imagined, for those eligible to save with it.

Leslie Shaffer is a senior writer at CNBC.com
Dated 30th Dec 2015

---------------------------------------------------------------------------------------------------------------------------------------------For those close to age 55 or at age 55 & have already met the min sum RA =$161k & Medisave acct $49.8k. You should not put your emergency fund in a local bank as Fixed D earning 1.6 to 1.9% .


You should switch your emergency from Fixed D to CPF which earns between 2.5% to 4%. Treat your CPF acct as "CPF saving bank" just like POSB saving bank (interest 0.3%) .The only problem is that you need to go to CPF board to take a form or go online to withdraw the EXCESS (after meeting RA $161k & MA =49.8k). I am suggesting to CPF board to have a CPF ATM card
for CPF member to draw the CPF EXCESS money through ATM mlc & allow more frequent withdrawal.

FYI,try not to pay your housing mortgage loan with 100% CPF money. Maybe 50% cash & 50% cpf . U can change the CPF payment allocation (any % U want) through CPF online. If you really can use 100% cash for your mortgage loan. It will be the best.

-------------------------------------------------------------------------------------------------------------------------------------------
Asset allocation tgt
1 HDB & 1 condo (3 bedder)

CPF "BOND" - Tgt $1m by age 60 through cash contribution (max 37.7k per year). Last level of defence in case I screw up my investment

Corporate bond for income - 10k to 12k per mth

Buy reit during crisis. Bought SPH reit (No penny stock & no frequent trading). Looking into US stock like Apple @ US$80-85.

Some FX PATIENCE trade - DCI or FX option - Only trade when there is a fear. Eg Aus vs SGD. Always invest when Aus <SGD or CAD <SGD

Listen to Leo Rojas - El Condor Pasa (Offizielles Video).
Whenever I feel moody, this is one of the music I listen.

https://www.youtube.com/watch?v=SYDrQqJVZMc

[Kelonguni]

Thanks for sharing the good ideas!

[cbsh38584]

Apply for Hyflux 6% SGD perp bond. Allocated S$200k. Likely for short term holding.
Rated as High risk Junk bond.


----------------------------------------------------------------------------------------------------------------------------------------------
Water treatment firm Hyflux has launched an offer for up to $300 million in perpetual capital securities, paying out 6 per cent a year.

The bulk of the perpetuals - up to $230 million - will be offered to the public, the group announced yesterday.

Of the remaining, up to $20 million will be offered to directors, management and employees of Hyflux and its units, and up to $50 million will be set aside in placement to institutional and other investors.

The securities pay a coupon of 6 per cent per annum. The placement tranche was four times subscribed. As a result of the strong demand, the placement tranche was increased from $50 million to $165 million and closed within the first day.

[cbsh38584]

Apply for Hyflux 6% SGD perp bond. Allocated S$200k. Likely for short term holding.
Rated as High risk Junk bond.


----------------------------------------------------------------------------------------------------------------------------------------------
Water treatment firm Hyflux has launched an offer for up to $300 million in perpetual capital securities, paying out 6 per cent a year.

The bulk of the perpetuals - up to $230 million - will be offered to the public, the group announced yesterday.

Of the remaining, up to $20 million will be offered to directors, management and employees of Hyflux and its units, and up to $50 million will be set aside in placement to institutional and other investors.

The securities pay a coupon of 6 per cent per annum. The placement tranche was four times subscribed. As a result of the strong demand, the placement tranche was increased from $50 million to $165 million and closed within the first day.

Also apply US$1m for Lend lease 4.75% USD 10 yrs bond. Zero allocation.

[teddybear]

Don't think such a high risk bond and being perpetual in nature only paying 6% coupon is worth the while..........
More like trying to chop carrot heads of the mom-and-pop looking for high yields and don't understand the risks......

Apply for Hyflux 6% SGD perp bond. Allocated S$200k. Likely for short term holding.
Rated as High risk Junk bond.


----------------------------------------------------------------------------------------------------------------------------------------------
Water treatment firm Hyflux has launched an offer for up to $300 million in perpetual capital securities, paying out 6 per cent a year.

The bulk of the perpetuals - up to $230 million - will be offered to the public, the group announced yesterday.

Of the remaining, up to $20 million will be offered to directors, management and employees of Hyflux and its units, and up to $50 million will be set aside in placement to institutional and other investors.

The securities pay a coupon of 6 per cent per annum. The placement tranche was four times subscribed. As a result of the strong demand, the placement tranche was increased from $50 million to $165 million and closed within the first day.

[Leeds]

MAY 19, 20165:55 PM
A LONG-DISCUSSED bond seasoning framework came into effect on the Singapore Exchange (SGX) on Thursday, giving retail investors the opportunity to buy certain bonds that were initially meant for institutions and accredited investors.

The framework, which went through public consultation in September and December 2014, will allow investors to buy wholesale bonds in denominations as small as S$1,000 if the bonds have been listed on SGX for at least six months. Issuers of such bonds must meet certain criteria relating to size, track record and listing history.

The framework also provides for re-taps, in which an issuer issues additional notes under an existing tranche without the need for a prospectus, as long as the six-month seasoning period is met.

At the same time, the Monetary Authority of Singapore (MAS) announced the Exempt Bond Issuer Framework, which allows issuers to offer bonds directly to retail investors at the onset without a prospectus if they meet eligibility criteria that are stricter than those used in the seasoning framework.

"The frameworks will widen the range of fixed income products and enable retail investors to access some of the 1,900 wholesale bonds listed on SGX," SGX chief executive Loh Boon Chye said in a statement. "Issuers too will gain from a bigger pool of investors. This initiative advances SGX's efforts to build a dynamic and thriving fixed income market in Singapore."

[cbsh38584]

MAY 19, 20165:55 PM
A LONG-DISCUSSED bond seasoning framework came into effect on the Singapore Exchange (SGX) on Thursday, giving retail investors the opportunity to buy certain bonds that were initially meant for institutions and accredited investors.

The framework, which went through public consultation in September and December 2014, will allow investors to buy wholesale bonds in denominations as small as S$1,000 if the bonds have been listed on SGX for at least six months. Issuers of such bonds must meet certain criteria relating to size, track record and listing history.

The framework also provides for re-taps, in which an issuer issues additional notes under an existing tranche without the need for a prospectus, as long as the six-month seasoning period is met.

At the same time, the Monetary Authority of Singapore (MAS) announced the Exempt Bond Issuer Framework, which allows issuers to offer bonds directly to retail investors at the onset without a prospectus if they meet eligibility criteria that are stricter than those used in the seasoning framework.

"The frameworks will widen the range of fixed income products and enable retail investors to access some of the 1,900 wholesale bonds listed on SGX," SGX chief executive Loh Boon Chye said in a statement. "Issuers too will gain from a bigger pool of investors. This initiative advances SGX's efforts to build a dynamic and thriving fixed income market in Singapore."

I do hope that they will allow using CPF-OA to buy investment grade bond like Capmall 3.08%, HDB bond 3.08% ,Lendlease SGD 4.7%, CDL 3.8% etc. Many CPF investors using their OA to buy or trade stock /unit trust are not making money.

My niece (early 30s) bought a total est 30k using the CPF OA & into unit trust (fixed income/gold fund/Asia fund) in 2014 through his friend working in Ifast. 1st time investors. Already lost est 20%. I already told her why not transfer her CPF-OA to CPF-SA to earn higher interest. Now regret. Likely to be a long term investors which LIKELY WILL NOT BEAT CPF return between 2.5% to 4%.

[teddybear]

If most people do shift money into retail bonds, we will see following consequences:

1) bond yield of Capmall, HDB, etc drop a lot to probably similar or even below CPF rate.

2) Highest risk bonds will see most people take-up because greedy for the high yields (which will become lower and lower yields when people chase after them) without understanding risks!

2) Highest risk bonds sooner or later some may default and people lose their savings and will cry father cry mother and blame the govt!

So, for these people, better keep their money in CPF OS ande SA to earn 2.5% and 4% return..............

I do hope that they will allow using CPF-OA to buy investment grade bond like Capmall 3.08%, HDB bond 3.08% ,Lendlease SGD 4.7%, CDL 3.8% etc. Many CPF investors using their OA to buy or trade stock /unit trust are not making money.

My niece (early 30s) bought a total est 30k using the CPF OA & into unit trust (fixed income/gold fund/Asia fund) in 2014 through his friend working in Ifast. 1st time investors. Already lost est 20%. I already told her why not transfer her CPF-OA to CPF-SA to earn higher interest. Now regret. Likely to be a long term investors which LIKELY WILL NOT BEAT CPF return between 2.5% to 4%.

[cbsh38584]

If most people do shift money into retail bonds, we will see following consequences:

1) bond yield of Capmall, HDB, etc drop a lot to probably similar or even below CPF rate.

2) Highest risk bonds will see most people take-up because greedy for the high yields (which will become lower and lower yields when people chase after them) without understanding risks!

2) Highest risk bonds sooner or later some may default and people lose their savings and will cry father cry mother and blame the govt!

So, for these people, better keep their money in CPF OS ande SA to earn 2.5% and 4% return..............

Your right. But if it is a non investment grade or not rated. .Not likely to be CPF approved SGX retail bond like Oxley.


Another website on corp bond price by UOB KY

http://www.utradebond.com/ by UOB Kay Hian.

[Leeds]

New HSBC coco bond issue. This one is very hot !!

Initial Pricing Thoughts: 7.25% area

Issuer : HSBC Holdings plc
Instrument : Perpetual Subordinated Contingent Convertible Securities
Issuer Ratings : A1 (neg) / A (stable) / AA- (stable)
Instrument Ratings : Baa3 (Moody's) / BBB (Fitch) (expected)
Form of Securities : SEC Registered
Size : USD Benchmark
Initial Pricing Thoughts : 7.25% area
Settlement Date : 1 June (T+5)
Maturity/Call : Perpetual-NC-5 Callable on 1 June 2021 (First Call Date) and every 5 years thereafter
Initial Interest Rate : [ ]% fixed, payable semi-annually in arrears on each 1 June and 1 December, commencing 1 December 2016
Interest Rate Reset : Reset on First Call Date and every 5 years thereafter, to a new fixed rate equal to the 5-year mid-market swap rate plus [ ] bps
Ranking : Unless previously converted into ordinary shares the Securities rank
(i) junior to all unsubordinated obligations,
(ii) junior to subordinated obligations, except any Parity Securities or Junior Securities,
(iii) pari passu with the most senior class of preference shares of the Issuer
Interest Payments : Interest payments are fully discretionary and non-cumulative Restriction on Interest Payments: Interest will not be paid in case of:
(i) insufficiency of Distributable Items,
(ii) Solvency Condition being not satisfied,
(iii) at Issuer’s discretion, including because Maximum Distributable Amount is exceeded, or due to Regulator’s restrictions, or
(iv) order of the regulator.
Additional Amounts : Payable with respect to interest (but not principal)
Early Redemption : At par upon Regulatory Event (exclusion in whole from regulatory capital or disqualification in full from AT1) or Tax Event (imposition of withholding tax or loss of deductibility)
Automatic Conversion : After a Capital Adequacy Trigger Event, the securities will be automatically and irrevocably converted into the Issuer’s ordinary shares at the Conversion Price
Capital Adequacy Trigger: CET1 ratio of HSBC Group falling below 7.0% (consolidated, end-point basis, without applying transitional provisions)
Conversion Price : USD[ ] per share (equivalent to GBP2.70 based on an exchange rate of GBP/USD [ ]), subject to certain anti-dilution adjustments
Conversion Share Offer : Following a Capital Adequacy Trigger Event, the Issuer may elect to offer some or all of the Conversion Shares to some or all of its shareholders at a price of GBP2.70, subject
to certain anti-dilution adjustments
Non-viability Loss Absorption: Statutory, see Risk Factors (in the Preliminary Prospectus Supplement dated 24 May 2016 and Prospectus dated 2 March 2015 as amended on 25 February 2016) related
to the Securities
Governing Law : New York (except Subordination governed by English Law)
Trustee : The Bank of New York Mellon, London Branch
Denominations : US$200k + US$1k
Day Count Convention : 30/360
Risk Factors : Investors should read the Risk Factors in the Preliminary Prospectus Supplement dated 24 May 2016 and Prospectus dated 2 March 2015 as amended on 25 February 2016
Listing : Application will be made to the Irish Stock Exchange for the Securities to be admitted to the Official List and trading on the Global Exchange Market of the Irish Stock Exchange
Selling Restrictions : The Securities are offered for sale only in jurisdictions where it is legal to make such offers. The offer and sale of the Securities are subject to limitation as set out in the Preliminary
Prospectus Supplement. Neither the underwriters nor the Issuer have taken any action in any jurisdiction that would constitute a public offering of the Securities, other than in the
United States. The Securities are not intended to be sold and should not be sold to "retail clients" (as defined under MiFID and/or under the United Kingdom Financial Conduct
Authority's Conduct of Business Sourcebook ("COBS") as amended from time to time) other than in accordance with the limited circumstances permitted by COBS.
Use of Proceeds : Issuer will use the net proceeds from the sale of the Securities for general corporate purposes and to further strengthen its capital base pursuant to requirements under CRD IV.
Sole Structurer &
Sole Bookrunner/B&D : HSBC
Sales into Canada : Yes, via exemption
Timing : Today's business NY

[Leeds]

Final coupon for HSBC Perp is 6.875% instead of the guided 7.25%. Market is hungry for yield.

[Leeds]

New issue from United Engineers Ltd

ISSUER : United Engineers Limited
STATUS : Direct, unconditional, unsubordinated and unsecured Notes
ISSUER / ISSUE RATING : Unrated
ISSUE SIZE : TBD
FORMAT/DOCS : Registered / Issuer’s SGD1 billion Multicurrency Debt Issuance Programme (the “Programme”)
TENOR : 5-year
INITIAL PRICE GUIDANCE : 3.8% area
INTEREST PAYMENT : Semi-annual, actual/365 (fixed)
LAUNCH DATE : 25 May 2016
COUPON DATE : 1 JUNE and 1 DECEMBER (First pay: 1 DECEMBER 2016)
SETTLEMENT DATE : 1 JUNE 2016
MATURITY DATE : 1 JUNE 2021
MAKE-WHOLE CALL : Yes, at make-whole (SGD SOR+0.50%)
REDEMPTION FOR : Yes, at par, in accordance with the Programme

TAXATION REASONS
REDEMPTION AT THE : Yes, at par, in accordance with the Programme
OPTION OF NOTEHOLDERS
UPON CESSATION OR
SUSPENSION OF TRADING
OF SHARES
DENOMINATION : SGD250K
GOVERNING LAW : Singapore Law
LISTING : SGX-ST
CLEARING : CDP
SELLING RESTRICTIONS : As per Information Memorandum dated 16 May 2016, including the Singapore selling restrictions under Sections 274/275 of the Securities and Futures Act, Chapter 289 of Singapore, Reg S only.
USE OF PROCEEDS : For refinancing of outstanding SGD250 million 4.20% notes due Jan 2017
SOLE ARRANGER AND : OCBC Bank
COORDINATOR
JOINT LEAD MANAGERS : OCBC Bank (B&D), DBS Bank Ltd.
AND BOOKRUNNERS
TIMING : As early as today

[Leeds]

Another investment grade Base III Tier 2 bond from France biggest bank. Should be well received.

Issuer BPCE SA
Guarantor -
Price Guidance 4.6% Area
Issue Date 02-Jun-2016
Maturity Date 02-Jul-2026
Minimum Investment Quantity (Nominal) SGD 250,000
Incremental Quantity (Nominal) SGD 250,000
Currency SGD
Annual Coupon Frequency Semi Annually
Bond Type Corporate
Bond Sector Financials
Bond Sub Sector Banks
Bond Credit Rating (Moody's / S&P / Fitch) Baa3 / BBB / A-
Issuer Credit Rating (Moody's / S&P / Fitch) A2 / A / A
Seniority Junior Subordinated
Issue Size SGD Benchmark
Exchange Listed SGX
Coupon Type Variable
CALLABLE

At Year 5

VARIABLE COUPON

Reset Rate = 5Y SGD SOR + Initial Spread
Reset Date = Year 5

LOSS ABSORPTION

French banking law allows authorities to cancel, write-down or convert into equity failing banks’ subordinated instruments (such as the Notes), in accordance with their seniority. Failing banks are defined as those that, currently or in the near future (i) no longer comply with regulatory capital requirements, (ii) are not able to make payments that are, or will be imminently, due, or (iii) require extraordinary public financial support. Conversion or write-down ratios are decided upon by the French resolution authority (the "ACPR") on the basis of a "fair and realistic" assessment.

[cbsh38584]

Your right. But if it is a non investment grade or not rated. .Not likely to be CPF approved SGX retail bond like Oxley.


Another website on corp bond price by UOB KY

http://www.utradebond.com/ by UOB Kay Hian.

The low interest rate for the past 7 yrs (2008-2015) has been good to the fixed income investors. But I
do not know when will it last. Look at the High risk jink bond especially from China (delveloper) & russia
(oil & bank). Most of the bond price are above 100.

I do not know when will FED start to be agressively move up the rate. Some say June16 . Some say very slow pace.
Some say low interest rate for a extensive period of time. Some say FED is going to cut rate instead of hike rate.
Some say another Lehman type of crisis is coming. Investing is getting so confusing.


We got so many unknow
Briexite
Donald trump (future US president?)
Greece crisis (now dormant)
Euro crisis
South China sea
China debt
terrorists
Currency manipulation .
Negative interest rate in Europe & japan & still inflation is low. No more bullet left soon ?
etc etc.

So be careful especially Bank coco bond , junk bond & perp bond. Hope for the best & be prepared for the worst.
I prefer not to hold long for junk & perp bond. Short dated bond is preferred .

[Leeds]

The low interest rate for the past 7 yrs (2008-2015) has been good to the fixed income investors. But I
do not know when will it last. Look at the High risk jink bond especially from China (delveloper) & russia
(oil & bank). Most of the bond price are above 100.

I do not know when will FED start to be agressively move up the rate. Some say June16 . Some say very slow pace.
Some say low interest rate for a extensive period of time. Some say FED is going to cut rate instead of hike rate.
Some say another Lehman type of crisis is coming. Investing is getting so confusing.


We got so many unknow
Briexite
Donald trump (future US president?)
Greece crisis (now dormant)
Euro crisis
South China sea
China debt
terrorists
Currency manipulation .
Negative interest rate in Europe & japan & still inflation is low. No more bullet left soon ?
etc etc.

So be careful especially Bank coco bond , junk bond & perp bond. Hope for the best & be prepared for the worst.
I prefer not to hold long for junk & perp bond. Short dated bond is preferred .

You are right; for long term hold, go for investment grade with shorter term.

For banks' bond, safer to go for local banks with lower coupon instead of European bank coco bonds with higher coupon. Unfortunately, all bonds from bank will come with Base III Tier 1 or Tier 2 Lost Absorption under new banking rules.

United Engineers bond issue yesterday with coupon at only 3.68%. Market is still hungry for investment grade bonds.

[cbsh38584]

Hope you made a windfall as most of the bonds prices shoot up recently, I bought nol bond at junk price and it shoot up quite a lot and still waiting for otto marine ( 79 ) to redeem in AUG . Since the prices are stabilized the gain are flat now. I guess should wait for stock opportunity in June.

Otto Marine told the Singapore Exchange that it has received a letter from RHB Securities Singapore, the financial adviser to the potential buyer, which said it intends to submit a formal proposal to the group's board "as soon as possible".

Good news for those who has OTTO marine bond.

[Citizen]

Otto Marine told the Singapore Exchange that it has received a letter from RHB Securities Singapore, the financial adviser to the potential buyer, which said it intends to submit a formal proposal to the group's board "as soon as possible".

Good news for those who has OTTO marine bond.

Thanks for the news, in fact both bonds have up quite a fair bit. I have already sold NOL 4.4 at $93 and otto marine I'm holding it till Aug redemption. Cheers ! those who went in to buy in march could have gain a lot by now. Now just waiting for opportunity to go in again.

[cbsh38584]

SINGAPORE - A unit of Singapore investment company Temasek Holdings has launched a US$500 million (S$680.9 billion) issue of listed bonds backed by a portfolio of 34 private equity funds.

The product is the first of its kind in Singapore and issued by a vehicle called Astrea III, a wholly-owned subsidiary of Astrea Capital. Astrea Capital is in turn a unit of Azalea Asset Management, which is an indirect wholly-owned subsidiary of Temasek.

The aim is to attract a wider range of investors to co-invest in private equity funds, The Straits Times understands. While this bond issue is available only to institutional and accredited investors, the longer-term intention is to structure a product targeted at retail investors.

SGD bond 4%+ investment grade long
USD bond 5%+ investment grade
Non investment grade USD junk bond >8%+

Likely will be allocated 1 lot if apply >10 to 20 million? Let wait for the actual IPO to be launched.