BOND THREAD

[Werther]

Bro Cbsh

Just check capitalmall retail 3.08%. They have just distributed the dividends in August 2015. so the next payout is next year? I saw only this payout this year. Is this a new bond?

So still ok to buy and wait for dividends or buy for capital gains?

tks

[cbsh38584]

Bro Cbsh

Just check capitalmall retail 3.08%. They have just distributed the dividends in August 2015. so the next payout is next year? I saw only this payout this year. Is this a new bond?

So still ok to buy and wait for dividends or buy for capital gains?

tks

If U buy capitalmall trust retail bond. The best is to hold till maturity due 2021.
If U need the money to buy 2nd ppty. Then U cannot buy 1-2 yrs bond
unless U are ready to take HIGH RISK to buy High Yield short dated bond.

Just buy bank like OCBC/DBS/UOB or Telco like Singtel/M1 for dividend play.
If U want to play safe. SPH is boring stock due to it low volatility.
Maybe U should wait for STI to drop <2800.

Schroder Asian unit trust fund is good. Their top holding include
AIA HK , Samsung , Cheung kong , BHP , Hong Hai (apple subcon) etc
U can buy as one of your portfolio.


=========================================================
If U have met your min sum of Special Acct (SA) =161k & Medisave acct (MA) =48.5k now.
Then U should transfer some of the EXTRA CASH which U think it will not be in use for the
next 6 yrs. But max per yr contribution is $31,450. By age 55,U can withdraw all at one go
from your original acct (OA) if U meet the min SA & MA sum (age 55).

In early 2000, I want to deposit 100k into my CPF acct. The staff keep persuading me not to as it will
be locked till age 55. . But I insisted as it is earning higher interest rate & treat it as a "insurance"
in case I screw up my CASH investment. Now U can only top up $31,450 per yr . Right now,
I am getting $15k+/yr of interest from my CPF acct. It will grow every yr as I continue to top up
to the max $31,450/yr from my bond coupon. I am glad & lucky that I have done quite well
in my bond leveraging. But it required a lot of risk taking to buy HY China developer bond &
other HY bond. Nov 2016 is a US election year & 2017 . I will be more careful

==========================================================

[GORDON]

For bonds, usually the tranche size is $250,000.

I've not bought bonds at IPO for some time, but for retail Citigold / Treasures type customers, I think 2% is more or less there, though you could try bargaining a bit. Often, the bank gets a discount from the issuer, but we never see any discount coming back to us (unless you are at the private banking level).

For secondary market, get the bank to quote you a price such that there is no comm (or any comm is built into the price). Again, at the retail level, be prepared for a 1.5 to 2.5 point spread between the sell and buy price.

Bottom line is, for retail investors, be prepared to hold the bond to maturity, otherwise get ready to take a hit on the price, especially if you are a client of 1 of the smaller / lesser banks.

Dear Starrynight
thanks for your reply about the commission being about 2% for retail citigold/treasury customer when they buy corporate bonds from bank.

does anyone else have a different commission charge?

Currently there is a discussion on bank preference shares coupon rate dbs 4.7% @ http://http://forums.hardwarezone.co...66757-166.html
or look up hardwarezone.com.sg money mind section topic Shiny things club last page

another blog http://http://investproperlyleh.blog...sbonds-in.html

is the info correct?

[starrynight]

Not familiar with the pref shares listed on SGX, and did not really read the thread, but the things to remember are:
1. some of them have a call date, i.e. bank can forcibly buy back from you
2. the call price is likely at 100, i.e. if you are buying today at above 100 (e.g. 102), you have to remember that you will like $2 per $100
3. check if there is a step-up in the event the call is not exercised. I suspect no such things for bank pref shares.

So bottom line is to factor that in your calculation as to the yield. That's why they have "yield to call %" in addition to "yield to maturity".

Dear Starrynight
thanks for your reply about the commission being about 2% for retail citigold/treasury customer when they buy corporate bonds from bank.

does anyone else have a different commission charge?

Currently there is a discussion on bank preference shares coupon rate dbs 4.7% @ http://http://forums.hardwarezone.co...66757-166.html
or look up hardwarezone.com.sg money mind section topic Shiny things club last page

another blog http://http://investproperlyleh.blog...sbonds-in.html

is the info correct?

[lionhill]

Bro Cbsh

Just check capitalmall retail 3.08%. They have just distributed the dividends in August 2015. so the next payout is next year? I saw only this payout this year. Is this a new bond?

So still ok to buy and wait for dividends or buy for capital gains?

tks

Most retail bonds preference shares in SGX pay half yearly.
Capitalmall retail 3.08 issued last year or even earlier (I cannot remember the exact date), you can check its prospect.
FCL 3.65 is quite new. If you dare to take more risk, there is a new 7 years bond AspialTrea 5.25

[cbsh38584]

I have been queuing almost everyday on behalf of my sisters for sometimes for these 2 retail bond.
Hopefully, some panic or desperate seller will unload to me at my buy price.

There is no accured interest you need to pay for retail bond listed in SGX. Unlike
the private tranches of S$250k, U need to pay for the accured interest + your buying price.

Capitalmall trust 3.08% due 2021 Q to buy @0.986 Amount $40k } To hold till maturity
Capitalmall Asia 3.8% due 2022 Q to buy @1.01 Amount $40k } To hold till maturity

[cbsh38584]

Last week, my friend invited me to the DBS Treasures Private Client, a newly-created platform, is specially designed
for clients with investible assets of SGD 1.5 million. It is quite surprise that their LTV for SGD bond like Swiber can be
as high as LTV55%. Other local & foreigner bank is ZERO for swiber. The custodian fee for holding SGD bond is ZERO &
USD=0.1%. SGD loan rate =1.7% (other 2.2%), USD=1% (other 1.3%) & Euro=0.75% (other 1%). Custodian for
structure product like ELN/FCN is zero (other bank= 0.2%).


What surprise me the most is that they give high LTV=80% for fully paid 2nd private property. There is a very good
opportunities for those who are savvy in leveraging who know wisely & patiently how to utilise the collateral given to them.

Let say U have a 2nd property fully paid & value at S$2m. Base on LTV of 80%. The bank can loan out $2mX80%=
S$1.6m. These S$1.6m if wisely & patiently utilise. It can be a good opportunities to earn some safe AAA rating income
to pay for your property tax, maintenance , Water/electricity bill etc.

U can buy HDB , LTA , SMART, capland , SIA etc straight bond if it drop to a attractive level that the coupon is more than
your SGD/USD loan rate. U even borrow loan in USD (@1%) to buy a AIA or other universal US$1m life plan. Better than buying
SGD term insurance S$1m which the premium can be as high as S$12k - $15k/mth depending on your age.

Let say u buy AIA USD Universal life plan at age 45. your single premium is est US$220k. U take a USD loan@1%/yr. You are
paying only US$2.2k (or S$3.1k)to insure US$1m. The USD loan rate will remain cheap (1-3%) for many yrs to come.
So cheap & there is cash return. On the 16th to 18th yr, it will breakeven. U can chose to terminate it at breakeven when your
children have grown up. or treat is as a legacy for your loving children when U pass away.

Let say u buy a Prudential S$1m term insurance at age 45, your yearly premium est S$15k/yr. There is no return as this is a
term insurance. This is how I learn from the smart investors. I am still learning by talking to more smart investors, bankers
experience senior retiree , google on retirement forum etc.

[Werther]

Last week, my friend invited me to the DBS Treasures Private Client, a newly-created platform, is specially designed
for clients with investible assets of SGD 1.5 million. It is quite surprise that their LTV for SGD bond like Swiber can be
as high as LTV55%. Other local & foreigner bank is ZERO for swiber. The custodian fee for holding SGD bond is ZERO &
USD=0.1%. SGD loan rate =1.7% (other 2.2%), USD=1% (other 1.3%) & Euro=0.75% (other 1%). Custodian for
structure product like ELN/FCN is zero (other bank= 0.2%).


What surprise me the most is that they give high LTV=80% for fully paid 2nd private property. There is a very good
opportunities for those who are savvy in leveraging who know wisely & patiently how to utilise the collateral given to them.

Let say U have a 2nd property fully paid & value at S$2m. Base on LTV of 80%. The bank can loan out $2mX80%=
S$1.6m. These S$1.6m if wisely & patiently utilise. It can be a good opportunities to earn some safe AAA rating income
to pay for your property tax, maintenance , Water/electricity bill etc.

U can buy HDB , LTA , SMART, capland , SIA etc straight bond if it drop to a attractive level that the coupon is more than
your SGD/USD loan rate. U even borrow loan in USD (@1%) to buy a AIA or other universal US$1m life plan. Better than buying
SGD term insurance S$1m which the premium can be as high as S$12k - $15k/mth depending on your age.

Let say u buy AIA USD Universal life plan at age 45. your single premium is est US$220k. U take a USD loan@1%/yr. You are
paying only US$2.2k (or S$3.1k)to insure US$1m. The USD loan rate will remain cheap (1-3%) for many yrs to come.
So cheap & there is cash return. On the 16th to 18th yr, it will breakeven. U can chose to terminate it at breakeven when your
children have grown up. or treat is as a legacy for your loving children when U pass away.

Let say u buy a Prudential S$1m term insurance at age 45, your yearly premium est S$15k/yr. There is no return as this is a
term insurance. This is how I learn from the smart investors. I am still learning by talking to more smart investors, bankers
experience senior retiree , google on retirement forum etc.

Thanks for the great info above.
But need time to understand and ponder over on the life insurance stated above, very chim for me but interesting. Thanks for the tip again.

You have been kind to blur sotong like me.

Have a wonderful weekend.

[chestnut]

You get OCBC U.S. Bond coupon payout 4.25%. 200k. Coupon. Borrow at 1%. Net coupon = 3.25%= 6.5k.

You can pay off your interest on your universal life borrowing and still have extra Usd.

Last week, my friend invited me to the DBS Treasures Private Client, a newly-created platform, is specially designed
for clients with investible assets of SGD 1.5 million. It is quite surprise that their LTV for SGD bond like Swiber can be
as high as LTV55%. Other local & foreigner bank is ZERO for swiber. The custodian fee for holding SGD bond is ZERO &
USD=0.1%. SGD loan rate =1.7% (other 2.2%), USD=1% (other 1.3%) & Euro=0.75% (other 1%). Custodian for
structure product like ELN/FCN is zero (other bank= 0.2%).


What surprise me the most is that they give high LTV=80% for fully paid 2nd private property. There is a very good
opportunities for those who are savvy in leveraging who know wisely & patiently how to utilise the collateral given to them.

Let say U have a 2nd property fully paid & value at S$2m. Base on LTV of 80%. The bank can loan out $2mX80%=
S$1.6m. These S$1.6m if wisely & patiently utilise. It can be a good opportunities to earn some safe AAA rating income
to pay for your property tax, maintenance , Water/electricity bill etc.

U can buy HDB , LTA , SMART, capland , SIA etc straight bond if it drop to a attractive level that the coupon is more than
your SGD/USD loan rate. U even borrow loan in USD (@1%) to buy a AIA or other universal US$1m life plan. Better than buying
SGD term insurance S$1m which the premium can be as high as S$12k - $15k/mth depending on your age.

Let say u buy AIA USD Universal life plan at age 45. your single premium is est US$220k. U take a USD loan@1%/yr. You are
paying only US$2.2k (or S$3.1k)to insure US$1m. The USD loan rate will remain cheap (1-3%) for many yrs to come.
So cheap & there is cash return. On the 16th to 18th yr, it will breakeven. U can chose to terminate it at breakeven when your
children have grown up. or treat is as a legacy for your loving children when U pass away.

Let say u buy a Prudential S$1m term insurance at age 45, your yearly premium est S$15k/yr. There is no return as this is a
term insurance. This is how I learn from the smart investors. I am still learning by talking to more smart investors, bankers
experience senior retiree , google on retirement forum etc.

[cbsh38584]

You get OCBC U.S. Bond coupon payout 4.25%. 200k. Coupon. Borrow at 1%. Net coupon = 3.25%= 6.5k.

You can pay off your interest on your universal life borrowing and still have extra Usd.

I believe it is better off to buy safe USD unit trust bond fund (3-4%) giving monthly payout dividend for those who
prefer not to take the medium to high volatility of individual USD bond.

[amk]

I believe it is better off to buy safe USD unit trust bond fund (3-4%) giving monthly payout dividend for those who
prefer not to take the medium to high volatility of individual USD bond.

actually I personally agree with chestnut, it is ok to pick individual bond over bond fund. in fact imo it should be better, esp for your purpose. individual bond once vested (and no leverage), no volatility to talk about: this thing is not meant to be traded month in and out. Your purpose is just to use the coupon to cover the funding. bond fund on the other hand, gives you diversification but not better credit. the biggest advantage of bond fund is just to allow you to invest piecemeal size instead of 200k lumpsum, for which many retail investors are unable to afford. And for that you pay a fee for nothing. If you have the capacity, there is no reason to use bond fund. Note here we are talking about blue chip bond/bond fund, not some HY. If you are concerned about the credit of the issuer, one has to take a position: do I have to worry about OCBC for the next 5 yrs ?

the ONLY issue of individual bond is this: it does not last the horizon you want. so you have to constantly (every 2/3/5 y) to look for new bonds. well you are savvy for that I'm sure.

The gist of you particular universal life game plan is this:

... You are paying only US$2.2k (or S$3.1k)to insure US$1m

instead of

term insurance S$1m which the premium can be as high as S$12k - $15k/mth

This is absolutely true for older ppl with very young kids (married late ?), and/or with any health conditions, for which cost of a high term life coverage is almost prohibitive. Using UL is a good trick. If you were younger (<40), a 1mil coverage costs no more than 2k, making this game plan irrelevant.

Universal Life plan is just a whole life plan with a twist (the portion going to "insurance" is not fixed). One should not use that for "investment". The golden rule of "buy term invest the rest" is always true. Except for your case, where you are treating it as an expense, NOT investment. Whole Life/Universal Life started in the west as way to dodge inheritance tax/estate duty. In SG there is no such tax now, there is even less reason to buy them.

[cbsh38584]

actually I personally agree with chestnut, it is ok to pick individual bond over bond fund. in fact imo it should be better, esp for your purpose. individual bond once vested (and no leverage), no volatility to talk about: this thing is not meant to be traded month in and out. Your purpose is just to use the coupon to cover the funding. bond fund on the other hand, gives you diversification but not better credit. the biggest advantage of bond fund is just to allow you to invest piecemeal size instead of 200k lumpsum, for which many retail investors are unable to afford. And for that you pay a fee for nothing. If you have the capacity, there is no reason to use bond fund. Note here we are talking about blue chip bond/bond fund, not some HY. If you are concerned about the credit of the issuer, one has to take a position: do I have to worry about OCBC for the next 5 yrs ?

the ONLY issue of individual bond is this: it does not last the horizon you want. so you have to constantly (every 2/3/5 y) to look for new bonds. well you are savvy for that I'm sure.

The gist of you particular universal life game plan is this:



instead of



This is absolutely true for older ppl with very young kids (married late ?), and/or with any health conditions, for which cost of a high term life coverage is almost prohibitive. Using UL is a good trick. If you were younger (<40), a 1mil coverage costs no more than 2k, making this game plan irrelevant.

Universal Life plan is just a whole life plan with a twist (the portion going to "insurance" is not fixed). One should not use that for "investment". The golden rule of "buy term invest the rest" is always true. Except for your case, where you are treating it as an expense, NOT investment. Whole Life/Universal Life started in the west as way to dodge inheritance tax/estate duty. In SG there is no such tax now, there is even less reason to buy them.

Thank for your valuable input.

[minority]

actually I personally agree with chestnut, it is ok to pick individual bond over bond fund. in fact imo it should be better, esp for your purpose. individual bond once vested (and no leverage), no volatility to talk about: this thing is not meant to be traded month in and out. Your purpose is just to use the coupon to cover the funding. bond fund on the other hand, gives you diversification but not better credit. the biggest advantage of bond fund is just to allow you to invest piecemeal size instead of 200k lumpsum, for which many retail investors are unable to afford. And for that you pay a fee for nothing. If you have the capacity, there is no reason to use bond fund. Note here we are talking about blue chip bond/bond fund, not some HY. If you are concerned about the credit of the issuer, one has to take a position: do I have to worry about OCBC for the next 5 yrs ?

the ONLY issue of individual bond is this: it does not last the horizon you want. so you have to constantly (every 2/3/5 y) to look for new bonds. well you are savvy for that I'm sure.

The gist of you particular universal life game plan is this:



instead of



This is absolutely true for older ppl with very young kids (married late ?), and/or with any health conditions, for which cost of a high term life coverage is almost prohibitive. Using UL is a good trick. If you were younger (<40), a 1mil coverage costs no more than 2k, making this game plan irrelevant.

Universal Life plan is just a whole life plan with a twist (the portion going to "insurance" is not fixed). One should not use that for "investment". The golden rule of "buy term invest the rest" is always true. Except for your case, where you are treating it as an expense, NOT investment. Whole Life/Universal Life started in the west as way to dodge inheritance tax/estate duty. In SG there is no such tax now, there is even less reason to buy them.

I personally believed in Term n invest the rest. want to pay a fix sum for insurance and invest. can do it with a Trem Plus a mthly equity investment i.e. those from POEM or OCBC where a fix $$$ is use to buy actual shares of counters of ur choice.

Thats the best way to package a insurance cum investment i feel all these investment link , or UL is too complicated and overhead too high.

[minority]

Last week, my friend invited me to the DBS Treasures Private Client, a newly-created platform, is specially designed
for clients with investible assets of SGD 1.5 million. It is quite surprise that their LTV for SGD bond like Swiber can be
as high as LTV55%. Other local & foreigner bank is ZERO for swiber. The custodian fee for holding SGD bond is ZERO &
USD=0.1%. SGD loan rate =1.7% (other 2.2%), USD=1% (other 1.3%) & Euro=0.75% (other 1%). Custodian for
structure product like ELN/FCN is zero (other bank= 0.2%).


What surprise me the most is that they give high LTV=80% for fully paid 2nd private property. There is a very good
opportunities for those who are savvy in leveraging who know wisely & patiently how to utilise the collateral given to them.

Let say U have a 2nd property fully paid & value at S$2m. Base on LTV of 80%. The bank can loan out $2mX80%=
S$1.6m. These S$1.6m if wisely & patiently utilise. It can be a good opportunities to earn some safe AAA rating income
to pay for your property tax, maintenance , Water/electricity bill etc.

U can buy HDB , LTA , SMART, capland , SIA etc straight bond if it drop to a attractive level that the coupon is more than
your SGD/USD loan rate. U even borrow loan in USD (@1%) to buy a AIA or other universal US$1m life plan. Better than buying
SGD term insurance S$1m which the premium can be as high as S$12k - $15k/mth depending on your age.

Let say u buy AIA USD Universal life plan at age 45. your single premium is est US$220k. U take a USD loan@1%/yr. You are
paying only US$2.2k (or S$3.1k)to insure US$1m. The USD loan rate will remain cheap (1-3%) for many yrs to come.
So cheap & there is cash return. On the 16th to 18th yr, it will breakeven. U can chose to terminate it at breakeven when your
children have grown up. or treat is as a legacy for your loving children when U pass away.

Let say u buy a Prudential S$1m term insurance at age 45, your yearly premium est S$15k/yr. There is no return as this is a
term insurance. This is how I learn from the smart investors. I am still learning by talking to more smart investors, bankers
experience senior retiree , google on retirement forum etc.

BTW if u are 45. you can also buy a 1M term from AVIVA under SAF ( If you are Singaporean) the term cost less then 2K per year.

[starrynight]

Vic,

I'm on the TPC platform, and indeed I have been offered quite a number of the ideas you have mentioned. That said, the understanding between my banker and me is that he leaves me alone most of the time, so I don't get the full suite of ideas.

I believe the 12-month lending rate is the max tenure, and it's around 1.9% now. Hence my reluctance to buy a bond using leverage where the maturity is more than 12 months away. In the "good old days" around 1.5 year ago, you could get 12-months loan for 1.2x%, i.e. 2.x% net yield. Net yields have compressed as the YTM% is still around the same, but borrowing cost has gone up almost 0.7%.

The LTV% for DBS sold bonds does not always make sense...

Last week, my friend invited me to the DBS Treasures Private Client, a newly-created platform, is specially designed
for clients with investible assets of SGD 1.5 million. It is quite surprise that their LTV for SGD bond like Swiber can be
as high as LTV55%. Other local & foreigner bank is ZERO for swiber. The custodian fee for holding SGD bond is ZERO &
USD=0.1%. SGD loan rate =1.7% (other 2.2%), USD=1% (other 1.3%) & Euro=0.75% (other 1%). Custodian for
structure product like ELN/FCN is zero (other bank= 0.2%).


What surprise me the most is that they give high LTV=80% for fully paid 2nd private property. There is a very good
opportunities for those who are savvy in leveraging who know wisely & patiently how to utilise the collateral given to them.

Let say U have a 2nd property fully paid & value at S$2m. Base on LTV of 80%. The bank can loan out $2mX80%=
S$1.6m. These S$1.6m if wisely & patiently utilise. It can be a good opportunities to earn some safe AAA rating income
to pay for your property tax, maintenance , Water/electricity bill etc.

U can buy HDB , LTA , SMART, capland , SIA etc straight bond if it drop to a attractive level that the coupon is more than
your SGD/USD loan rate. U even borrow loan in USD (@1%) to buy a AIA or other universal US$1m life plan. Better than buying
SGD term insurance S$1m which the premium can be as high as S$12k - $15k/mth depending on your age.

Let say u buy AIA USD Universal life plan at age 45. your single premium is est US$220k. U take a USD loan@1%/yr. You are
paying only US$2.2k (or S$3.1k)to insure US$1m. The USD loan rate will remain cheap (1-3%) for many yrs to come.
So cheap & there is cash return. On the 16th to 18th yr, it will breakeven. U can chose to terminate it at breakeven when your
children have grown up. or treat is as a legacy for your loving children when U pass away.

Let say u buy a Prudential S$1m term insurance at age 45, your yearly premium est S$15k/yr. There is no return as this is a
term insurance. This is how I learn from the smart investors. I am still learning by talking to more smart investors, bankers
experience senior retiree , google on retirement forum etc.

[cbsh38584]

Vic,

I'm on the TPC platform, and indeed I have been offered quite a number of the ideas you have mentioned. That said, the understanding between my banker and me is that he leaves me alone most of the time, so I don't get the full suite of ideas.

I believe the 12-month lending rate is the max tenure, and it's around 1.9% now. Hence my reluctance to buy a bond using leverage where the maturity is more than 12 months away. In the "good old days" around 1.5 year ago, you could get 12-months loan for 1.2x%, i.e. 2.x% net yield. Net yields have compressed as the YTM% is still around the same, but borrowing cost has gone up almost 0.7%.

The LTV% for DBS sold bonds does not always make sense...

DBS borrowing rate is currently cheaper & there is no custodian fee on SGD bond=0% & USDbond =0.1%.
For me, it will be a big saving (est $10k/yr) due my leveraging on bond + saving of the bond custodian fee.

But what I like most is that it can use the 2nd full paid ppty as a collateral. LTV =80%. Other private
bank only 40%-50%. I am keen on this equity loan but will not invest all (maybe 30-50%). Need to be very
patient to use it wisely & not to be GREEDY.

I am surprise that Yanlord SGD bond LTV is 0. Where Central china real estate SGD bond LTV is 65%.
So I find some DBS sold bonds LTV does not make sense.

[stl67]

DBS borrowing rate is currently cheaper & there is no custodian fee on SGD bond=0% & USDbond =0.1%.
For me, it will be a big saving (est $10k/yr) due my leveraging on bond + saving of the bond custodian fee.

But what I like most is that it can use the 2nd full paid ppty as a collateral. LTV =80%. Other private
bank only 40%-50%. I am keen on this equity loan but will not invest all (maybe 30-50%). Need to be very
patient to use it wisely & not to be GREEDY.

I am surprise that Yanlord SGD bond LTV is 0. Where Central china real estate SGD bond LTV is 65%.
So I find some DBS sold bonds LTV does not make sense.

with 2nd property as collateral, does TDSR still come into play? say I got 3 other properties and cars loans.. but my first 2 properties are all fully paid.

[cbsh38584]

with 2nd property as collateral, does TDSR still come into play? say I got 3 other properties and cars loans.. but my first 2 properties are all fully paid.

I was invited by my friend to listen to what her RM got to offer in DSB private bank.
U need to ask DBS private banking (S$1.5m) for more detail.

[amk]

with 2nd property as collateral, does TDSR still come into play?

this does not go into TDSR because it is not a mortgage. technically you get an *overdraft* on a secured asset, which, on paper, is monthly "re-borrowed". private bank has been playing with this for a while. the risk for you is: yes the bank can demand repayment any time as this is not a term loan.

[cbsh38584]

Bought Central China real estate SGD bond 10.75% in May12 @100.8 ($252k)
Today decide to take profit & sold @101.8 ($254.5k). Looking for opportunities
to switch to other SGD bond or switch to equity.

[minority]

with equity trending lower and interest due to increase. I wonder if BOND will still be attractive. Looking at some of the 3% BOND the retail ones like CapitalMall is under $1. I guess its under some pressure from the SG saving bond which can give up to 3% at less risk ( must hold 10yrs) . As well as pressure from the rising interest rates.

[Forest ang]

hi all, can amyone advice if Ascendas 5year perpeutal bond @ 5% is good?

[Fisherman]

hi all, can amyone advice if Ascendas 5year perpeutal bond @ 5% is good?

SUMMARY AND INDICATIVE TERMS AND CONDITIONS OF NEW BOND ISSUE
Issuer:
Ascendas Real Estate Investment Trust ("A-Reit")
Expected Issue Rating:
Baa2
Maturity Date:
NA
Coupon / Dividend Guidance:
[5.00]%
Payment Frequency:
Semi- Annual
Currency:
SGD
Minimum Subscription Amount:
SGD250K
Capital Structure:
Subordinated
Issue Size:
Benchmark
Timing:
Books closing 5 October 2015. Allocation is not guaranteed.
Guarantor / SBLC Provider / Keepwell Provider:
NA
Next Call Date / Call Schedule:
[05] October 2020
Coupon / Dividend Resets:
Fixed until year 5, reset every 5 years thereafter to the prevailing 5- year Singapore Swap- Offer Rate plus a fixed spread

Looks good as the coupon rate will be reset after 5 years.

[cbsh38584]

Apr 2015
Billionaire investor Stanley Druckenmiller has once again warned that the easy money policies of recent years could end poorly.
"I know it's so tempting to go ahead and make investments and it looks good for today," the retired founder of Duquense Capital Management said, "but when this thing ends, because we've had speculation, we've had money building up four to six years in terms of a risk pattern, I think it could end very badly.

Druckenmiller cited warning signs like the high number of initial public offerings of companies that are unprofitable, and high levels of debt issued to companies, often with poor credit ratings and without many lending restrictions—so called covenants

"You have to be on alert to that ending badly


==================================================================================================
Recently sold a few of my bond holding to reduce my leverage. Now only 600k on leverage as compare to $1m to $2m leveraging between 2011-2014. By 2016, ZERO leverage as I have > $1m bond holding due to mature in Mid 2016. Just want to play safe & will not be aggressive in buying high yield Junk bond as it approach 2016..

Recently did a lot of dual currency investment (DCI) pairing on SGD/AUS @0.98 & EURO/USD @1.16 to make a decent of 5% return. If U got no experience on the currency pairing & its movement. Better avoid. Many of my friends got burnt badly (>15%) by paring Aus/SGD >1.20 (now 1.016).

[Werther]

Apr 2015
Billionaire investor Stanley Druckenmiller has once again warned that the easy money policies of recent years could end poorly.
"I know it's so tempting to go ahead and make investments and it looks good for today," the retired founder of Duquense Capital Management said, "but when this thing ends, because we've had speculation, we've had money building up four to six years in terms of a risk pattern, I think it could end very badly.

Druckenmiller cited warning signs like the high number of initial public offerings of companies that are unprofitable, and high levels of debt issued to companies, often with poor credit ratings and without many lending restrictions—so called covenants

"You have to be on alert to that ending badly


==================================================================================================
Recently sold a few of my bond holding to reduce my leverage. Now only 600k on leverage as compare to $1m to $2m leveraging between 2011-2014. By 2016, ZERO leverage as I have > $1m bond holding due to mature in Mid 2016. Just want to play safe & will not be aggressive in buying high yield Junk bond as it approach 2016..

Recently did a lot of dual currency investment (DCI) pairing on SGD/AUS @0.98 & EURO/USD @1.16 to make a decent of 5% return. If U got no experience on the currency pairing & its movement. Better avoid. Many of my friends got burnt badly (>15%) by paring Aus/SGD >1.20 (now 1.016).

Hello cbsh

Once again thanks for your sharing.

I am thinking of doing dual currency on SGD/AUD since AUD $ already dropped so much.. you have any idea what is the bank return how?

[cbsh38584]

Hello cbsh

Once again thanks for your sharing.

I am thinking of doing dual currency on SGD/AUD since AUD $ already dropped so much.. you have any idea what is the bank return how?

USD/SGD = 3 mths tgt 1.43
= 12 mths tgt 1.45 to 1.47

Pair SGD base against USD . Spot price @1.415 one mths pay U 4% coupon if strike price @1.40. (Yesterday pricing)
Now Spot is @1.412 One mths pay U 4% coupon if strike [email protected] (today pricing)

The movement of the currency changes every second. So reprice is needed every second.

==================================================================================
AUS/SGD = 3 mths tgt 1.00
12 mths tgt 1.02

Pair SGD base against AUS. Spot price @1.015 One mths pay U 5% coupon if strike price @0.9990 ( today pricing)
One mths pay U 3%coupon if strike price @0.9910 (today pricing)

The movement of the currency changes every second. So reprice is needed every second.

========================================================================================

Pls get the advise from your banker. Again if U have no clue on the movement of the currency. Better avoid unless U willing to
hold non SGD currency if it get converted. Just 1-2 week age, I have done closed to S$850k (from bond sold) of DCI on SGD/AUS @0.98
& EURO/USD @1.16 (One mth tenor) earning S$4k.

I shall buy less on bond & No leveraging on Junk bond in 2016. Not willing to take more high risk (HY & leveraging) if not all my hard earn
profit from Mid-2010 to 2015 will go wipe out within mths.

[cbsh38584]

USD/SGD = 3 mths tgt 1.43
= 12 mths tgt 1.45 to 1.47

Pair SGD base against USD . Spot price @1.415 one mths pay U 4% coupon if strike price @1.40. (Yesterday pricing)
Now Spot is @1.412 One mths pay U 4% coupon if strike [email protected] (today pricing)

The movement of the currency changes every second. So reprice is needed every second.

==================================================================================
AUS/SGD = 3 mths tgt 1.00
12 mths tgt 1.02

Pair SGD base against AUS. Spot price @1.015 One mths pay U 5% coupon if strike price @0.9990 ( today pricing)
One mths pay U 3%coupon if strike price @0.9910 (today pricing)

The movement of the currency changes every second. So reprice is needed every second.

========================================================================================

Pls get the advise from your banker. Again if U have no clue on the movement of the currency. Better avoid unless U willing to
hold non SGD currency if it get converted. Just 1-2 week age, I have done closed to S$850k (from bond sold) of DCI on SGD/AUS @0.98
& EURO/USD @1.16 (One mth tenor) earning S$4k.

I shall buy less on bond & No leveraging on Junk bond in 2016. Not willing to take more high risk (HY & leveraging) if not all my hard earn
profit from Mid-2010 to 2015 will go wipe out within mths.

If U are doing dual currency investment. There are a few important things to take note.

FOR AUS/NZ, China PMI data. If bad, Aus & NZ currency will weaken. It seems like China PMI data is normally weak from Apr-Oct.
Then it start to get better from Nov to Mar. AUS&NZ job data.

For SGD , Monetary Policy Statement on Mid Oct15.


For USD, Job data (beginning of the month & FOMC meeting (Mid Oct15). A raise in US rate will strengthen USD currency as USD is also a carry trade currency due to it cheap borrowing cost.


For Yen, Stock deep correction, Yen will strengthen as it is a carry trade currency. Borrow Yen (<0.7%) & convert to other currency to invest in high return investment etc.

[dtrax]

any advice on this?

Counter : Bank of China (3988 HK) + China Construction Bank (939 HK) + Industrial Commercial Bank of China (1398 HK)
Tenor : 12 Months
Currency : SGD, USD and HKD
Strike Level : 77-80%
Coupon : 6.5 - 7.5 %pa (1st month coupon is guaranteed)
Knock Out (Early Redemption Level ) : 100% (of initial traded level) . Early Redemption will be observed starting from Month 2, Day 1 on a daily basis.


From the price charts of the 3 banks, at a Strike Level of 75%, you will be buying in the 3 Bank Stocks at 2009 price levels.
Deep Buffer of 23-20 % to cushion against Market Volatility during the tenor of the Structured Note. Stock Conversion is only observed on Maturity Date.
Due to the risen drop in prices, the Dividend Yields for the 3 Banks has risen from 5% to 6++% currently.
Majority of the Bank Analysts polled are still having Buy Calls for the Bank Stocks.
Companies are Sovereign-Owned / State-Owned.

[cbsh38584]

any advice on this?

Counter : Bank of China (3988 HK) + China Construction Bank (939 HK) + Industrial Commercial Bank of China (1398 HK)
Tenor : 12 Months
Currency : SGD, USD and HKD
Strike Level : 77-80%
Coupon : 6.5 - 7.5 %pa (1st month coupon is guaranteed)
Knock Out (Early Redemption Level ) : 100% (of initial traded level) . Early Redemption will be observed starting from Month 2, Day 1 on a daily basis.


From the price charts of the 3 banks, at a Strike Level of 75%, you will be buying in the 3 Bank Stocks at 2009 price levels.
Deep Buffer of 23-20 % to cushion against Market Volatility during the tenor of the Structured Note. Stock Conversion is only observed on Maturity Date.
Due to the risen drop in prices, the Dividend Yields for the 3 Banks has risen from 5% to 6++% currently.
Majority of the Bank Analysts polled are still having Buy Calls for the Bank Stocks.
Companies are Sovereign-Owned / State-Owned.

Take note the worst case & the risk
Worst case: Capital will be converted to the worst performing of the 2 underlying shares counters at strike price.

Risk: Capital loss if the underlying shares drop below strike price and full capital loss if the underlying shares goes to zero.

Base on the strike level, it is quite attractive strike price. But the coupon is not high. Not worth to take the risk as the maturity date is stretch to Nov16. If US interest rate start to move more from Mid 2016 onward. Not sure will there be a serious deep correction for ASIA. Right now, there is quite a few structure note on HK Hang Seng , S&P & Japan Nikkei 50% barrier level (12 mths period) . I am abit worry when the bank come out with these deep barrier 50% on HK , S&P & Nikkei index especially the issuer are from UBS , Morgan Stanley & Goldman sach (big white shark).




I did this DAC (Daily Accrued Coupon) on China life insurance + HK AIA when the the market is very volatile.It maybe this is one of the reason why the coupon is 12% P.A. So far so good. I chose insurance stock as I am more comfortable it due to their biz in insurance sector.

1st payout US$2500 (guarantee)
2nd Payout US$1875 (fixing 15/9)
3rd payout US$2200 ? ( Fixing on 13/10)

==============================================================================================
Underlying: China Life Insurance Co Ltd - 2628.HK (2628 HK) [email protected]
AIA GROUP LTD - 1299.HK (1299 HK) [email protected]

Trade Date: 07-Jul-2015
Payment Date: 21-Jul-2015
Fixing Date: 19-Jul-2016
Maturity Date: 21-Jul-2016
Tenor: 1-Year

Strike: 82.09% of HKD30.80 = HKD25.26
82.09% of HKD50.26 = HKD41.26

Knockout %: 100.00%
Max Coupon %: 12.00%pa
Total Notional: US$250,000
Indicative LTV: 60.00

[cbsh38584]

USD/SGD = 3 mths tgt 1.43
= 12 mths tgt 1.45 to 1.47

Pair SGD base against USD . Spot price @1.415 one mths pay U 4% coupon if strike price @1.40. (Yesterday pricing)
Now Spot is @1.412 One mths pay U 4% coupon if strike [email protected] (today pricing)

The movement of the currency changes every second. So reprice is needed every second.

==================================================================================
AUS/SGD = 3 mths tgt 1.00
12 mths tgt 1.02

Pair SGD base against AUS. Spot price @1.015 One mths pay U 5% coupon if strike price @0.9990 ( today pricing)
One mths pay U 3%coupon if strike price @0.9910 (today pricing)

The movement of the currency changes every second. So reprice is needed every second.

========================================================================================

Pls get the advise from your banker. Again if U have no clue on the movement of the currency. Better avoid unless U willing to
hold non SGD currency if it get converted. Just 1-2 week age, I have done closed to S$850k (from bond sold) of DCI on SGD/AUS @0.98
& EURO/USD @1.16 (One mth tenor) earning S$4k.

I shall buy less on bond & No leveraging on Junk bond in 2016. Not willing to take more high risk (HY & leveraging) if not all my hard earn
profit from Mid-2010 to 2015 will go wipe out within mths.

On 8th Oct15, my banker told me their FX research team trading idea on SGD (base) /USD pairing. But I
did not trade as I find that the risk of getting converted is high.

Strike @1.41 pay 5% or strike @1.40 pay 3% One mth tenor. Right now, SGD/USD is already at 1.3944.
So don't follow your banker recommendation blindly.