BOND THREAD

[starrynight]

This is the 5% yield one? From the latest copy of The Edge, current traded price is 101.375.

So will you accept?

Question so I understand the process better: if a bondholder wants to accept, does he / she need to fill up some form, etc? When's the deadline? In between now and the buyback date, the bondholder cannot sell off his / her committed holding?

I bought SG$250k Petra Food straight bond 5% coupon at 100 par on 20th Apr12. Maturity date is 2017. LTV given is 70%. So come out cash 30% of SG$250k = SG$75k. Borrowing interest for $175k @ 1.35% including custodian fee..

Rec'd the 1st payout on of Sg$6250 on 20th Oct12.
Expect to rec the next payout of SG$6250 on 20th Apr13


Just rec'd a early redemption letter from Petra food . A 3% (103) incentive will be given to bond investors holders who agree to the early redemption of the bond. It will take est 6-7 mths (Oct 13) to complete the buyout from the bond investors.

Likely profit from Petra food bond for holding for 18 mths est $6250X3+ $7500 (3% of 250k ) = SG$26,250k.

Net return for holding 18 mths =$26.25k - $3.6(borrowing cost) = S$22.65k

==============================================
With the latest cooling measure nos 7 + increase in property tax. Buying straight bond with no leverage can be a alternative for those low risk investors.Just need to be patience for the yield to be attractive level to buy. Currently still hv S$3m bond. Need to slowly de-leverage.


rdgs,
Vic

[starrynight]

The same bank which sells you the bond can offer you leverage as well.

Like I use DBS - banker was offering internal cost of funds + 0.4% or something. Can't remember the exact spread.

can I ask how to buy bonds with leverage? financed through which banks?

[roly8]

my impression is you put $250k in straight bond, why do we need to monitor the bond price ? is it the later date you enter, the lower yield you might get for this straight bond?

at the end of the day, the bond price will not go below your bought price level ,right?

meaning to say, you are guarantee capital + the yield stated at the end of the day for straight bond?

just want to clear my doubt..

[DC33_2008]

Bank will give different level of leverage depending on the bond.

can I ask how to buy bonds with leverage? financed through which banks?

[cbsh38584]

This is the 5% yield one? From the latest copy of The Edge, current traded price is 101.375.

So will you accept?

Question so I understand the process better: if a bondholder wants to accept, does he / she need to fill up some form, etc? When's the deadline? In between now and the buyback date, the bondholder cannot sell off his / her committed holding?

This Petra Food bond is illiquid due to it small size issued 70m.So price is not accurate in Bloomberg. Sometimes, there is no seller at all . U just need to try U luck to Q at a lower price hoping some desperate seller want to sell to U. U need to fill up some form. For me, I just do a voice log on the phone with my banker will do. Dont need to fill form.

I will accept at 1.03. It need 75% of the bond holders consent which will likely exceed 75% according to my banker. I still can sell in the mkt. The offer is quite attractive so I accept their offer @1.03. But I believe once U accept their offer @1.03. U are unable to sell.

rdgs,
Vic

[cbsh38584]

my impression is you put $250k in straight bond, why do we need to monitor the bond price ? is it the later date you enter, the lower yield you might get for this straight bond?

at the end of the day, the bond price will not go below your bought price level ,right?

meaning to say, you are guarantee capital + the yield stated at the end of the day for straight bond?

just want to clear my doubt..

If you buy many bonds on leveraging. U may need to review your bond portfolio occasionally. U Just need one of your bond default, there maybe a margin call. The UOB priority banker told me last Dec12 that quite a few his clients got margin call on OLAM bond. Maybe they are over leverage on Olam. I did not ask him in detail as I do not buy bond through UOB.

But if U buy a quality straight bond with no leverage. Then U maybe right that U are guarantee capital + coupon.But If the company that issued bond bankrupt which is unlikely for a quality company, Your intial capital $250k maybe zero. So it is important to buy a quality bond for low risk investor who just want to beat inflation rate of 4%.

Some China companies listed in SGX like China milk , Hong Xing & celestial nutrifodd issued a convertiable bond in early 2003 to 2005. Most bond holders are in deep shit as the companies are suspended due to accounting fraud . Not sure they are able to get back their money. Only Yanlord bond is holding very well.


rdgs,
Vic

[cbsh38584]

Risk of investing in Bonds
* Credit Risk * Interest rate risk * Liquidity risk * FX risk

Credit risk is an investor's risk of loss arising from a borrower who does not make payments as promised

Moody investment grade rating
Aaa , Aa1 , Aa2 , Aa3 , A1 , A2 , A3 , Baa1 , Baa2 , Baa3

Moddy Non-investment grade
Ba1 Ba2 Na3 B1 B2 B3 Caa1 Caa2 Caa3 D

　
S&P and Fitch investment grade rating
AAA AA+ AA AA- A+ A- BBB+ BBB BBB-

S&P and Fitch Non investment grading Rating
BB+ BB BB- B+ B B- CCC+ CCC CCC- D

　

Interest rate risk affects the value of bonds more directly than stocks, and it is a major risk to all bondholders. As interest rates rise, bond prices fall and vice versa. The rationale is that as interest rates increase, the opportunity cost of holding a bond decreases since investors are able to realize greater yields by switching to other investments that reflect the higher interest rate. For example, a 5% bond is worth more if interest rates decrease since the bondholder receives a fixed rate of return relative to the market, which is offering a lower rate of return as a result of the decrease in rates

Liquidity Risk
In an Liquid market, investors run the risk of either having to retain the bond till maturity or selling it before maturity at an unfavorable price
Issue size = liquidity ? (>US$500m more liquid ?)
Establishing a fair price & price comaprisons can be difficult or impossible as there are sometimes no Counterparties interested in the bond.


　
　
FX risk
Morgan Stanley 7.625% Aust dollar bond Due 2016
Aud/SGD 1.33 (1st Feb12)
Aud SGD 1.254(1st Jun12)
Aud/SGD 1.285(12th Dec12)
If U borrow (due to low rate 1.55%) SGD or USD to convert to Aust to buy Aust bond. There is a FX risk which may go against you


Bond Types
Fixed Rate bond (straight bond)
Fixed maturity & fixed cash flow pattern (I.ecoupon)
Eg NOL 4.25% due 2017
Olam 4.07% due Feb 2013


Callable bond
Gives the issues the right to buy back all or some of the issues prior to maturity
Call price : Specified price at which the bond may be repaid
Eg Hyflux 4.25% 2018. (Callable on 7 Sep15 @ 102.13)


Perpertual bond (some do come with callable term)

Bond in which the issuer does not repay the principal. Rather, a perpetual bond pays the bondholder a fixed coupon as long as he/she holds it. Prices for perpetual bonds vary widely according to long-term interest rates. When interest rates rise, perpetual bonds fall and vice versa.

　
　
　
　
　
　
　
Inflating-linked bond
Pays a fixed coupon + an amt that is linked to a price index to compensate for inflation
* S’pore’s central bank is studying the feasibility of selling

Inflation-linked bonds to help citizens boost on savings amid low interest rate ( Bloomberg 9th Jul 2012)


Convertible bond
* Hybrid that combines both equity & debt features
* Holders have the right to convert the bond into issers’s equity in a predominated ratio during a specified conversion period
Eg Keppel land 1.875% due 2015 convertible bond
Conversion price @ $6.72. ( Now trading @3.8)


　
Bond structure
Unsecured Bond that is not secured by a collateral.Most bond are unsecured

Secured Bond.
Bond is backed by a Collateral
Eg OUE 3.36% due 2013.
Back by Mandarin gallery & Mandarine Orchard.


　
　
Bond seniority
bondholders are credits & therefore have a higher priority calim than equity holders in a liqudation or restructuring scenario.

Senior bond has a higher priority claim than other bonds on the assets issued by the same entity.


Subordinated (junior) bond A class of bond that, in the event of liquidation, is prioritized lower than other classes of bonds. For example, a subordinate bond may be an unsecured bond, which has no collateral. Should the issuer be liquidated, all secured bonds and similar debts must be repaid before the subordinated bond is repaid. A subordinate bond carries higher risk, but also pays higher returns than other classes

==========================================
Originally Posted by Laguna

.

There are some more pointers to share :

1. cumulative vs non-cumulative : ie if the issuers delay the payment of dividend, in the case of cumulative, the issuers will pay back the arrears (I think with interest) but not the non-cumulative

2. past dividend track records : dividends on share is ranked after dividend on bonds. The bond investors need to check the past dividend track records and of course, the issuers balance sheet on their cash position, profit and working capital etc

3. custodian fee charge by the bank

4. For the OTC market, the premium you are paying.

BTW, the high yield bonds are doing well

[DC33_2008]

Need your advice on American Income Portfolio, JF Asia Pacific Income (Alliance Bernstein) Fund (JPMorgan) and Templeton Global Total Return Fund? What do you think of the risk vs yield?

Risk of investing in Bonds
* Credit Risk * Interest rate risk * Liquidity risk * FX risk

Credit risk is an investor's risk of loss arising from a borrower who does not make payments as promised

Moody investment grade rating
Aaa , Aa1 , Aa2 , Aa3 , A1 , A2 , A3 , Baa1 , Baa2 , Baa3

Moddy Non-investment grade
Ba1 Ba2 Na3 B1 B2 B3 Caa1 Caa2 Caa3 D

　
S&P and Fitch investment grade rating
AAA AA+ AA AA- A+ A- BBB+ BBB BBB-

S&P and Fitch Non investment grading Rating
BB+ BB BB- B+ B B- CCC+ CCC CCC- D

　

Interest rate risk affects the value of bonds more directly than stocks, and it is a major risk to all bondholders. As interest rates rise, bond prices fall and vice versa. The rationale is that as interest rates increase, the opportunity cost of holding a bond decreases since investors are able to realize greater yields by switching to other investments that reflect the higher interest rate. For example, a 5% bond is worth more if interest rates decrease since the bondholder receives a fixed rate of return relative to the market, which is offering a lower rate of return as a result of the decrease in rates

Liquidity Risk
In an Liquid market, investors run the risk of either having to retain the bond till maturity or selling it before maturity at an unfavorable price
Issue size = liquidity ? (>US$500m more liquid ?)
Establishing a fair price & price comaprisons can be difficult or impossible as there are sometimes no Counterparties interested in the bond.


　
　
FX risk
Morgan Stanley 7.625% Aust dollar bond Due 2016
Aud/SGD 1.33 (1st Feb12)
Aud SGD 1.254(1st Jun12)
Aud/SGD 1.285(12th Dec12)
If U borrow (due to low rate 1.55%) SGD or USD to convert to Aust to buy Aust bond. There is a FX risk which may go against you


Bond Types
Fixed Rate bond (straight bond)
Fixed maturity & fixed cash flow pattern (I.ecoupon)
Eg NOL 4.25% due 2017
Olam 4.07% due Feb 2013


Callable bond
Gives the issues the right to buy back all or some of the issues prior to maturity
Call price : Specified price at which the bond may be repaid
Eg Hyflux 4.25% 2018. (Callable on 7 Sep15 @ 102.13)


Perpertual bond (some do come with callable term)

Bond in which the issuer does not repay the principal. Rather, a perpetual bond pays the bondholder a fixed coupon as long as he/she holds it. Prices for perpetual bonds vary widely according to long-term interest rates. When interest rates rise, perpetual bonds fall and vice versa.

　
　
　
　
　
　
　
Inflating-linked bond
Pays a fixed coupon + an amt that is linked to a price index to compensate for inflation
* S’pore’s central bank is studying the feasibility of selling

Inflation-linked bonds to help citizens boost on savings amid low interest rate ( Bloomberg 9th Jul 2012)


Convertible bond
* Hybrid that combines both equity & debt features
* Holders have the right to convert the bond into issers’s equity in a predominated ratio during a specified conversion period
Eg Keppel land 1.875% due 2015 convertible bond
Conversion price @ $6.72. ( Now trading @3.8)


　
Bond structure
Unsecured Bond that is not secured by a collateral.Most bond are unsecured

Secured Bond.
Bond is backed by a Collateral
Eg OUE 3.36% due 2013.
Back by Mandarin gallery & Mandarine Orchard.


　
　
Bond seniority
bondholders are credits & therefore have a higher priority calim than equity holders in a liqudation or restructuring scenario.

Senior bond has a higher priority claim than other bonds on the assets issued by the same entity.


Subordinated (junior) bond A class of bond that, in the event of liquidation, is prioritized lower than other classes of bonds. For example, a subordinate bond may be an unsecured bond, which has no collateral. Should the issuer be liquidated, all secured bonds and similar debts must be repaid before the subordinated bond is repaid. A subordinate bond carries higher risk, but also pays higher returns than other classes

==========================================
Originally Posted by Laguna

.

There are some more pointers to share :

1. cumulative vs non-cumulative : ie if the issuers delay the payment of dividend, in the case of cumulative, the issuers will pay back the arrears (I think with interest) but not the non-cumulative

2. past dividend track records : dividends on share is ranked after dividend on bonds. The bond investors need to check the past dividend track records and of course, the issuers balance sheet on their cash position, profit and working capital etc

3. custodian fee charge by the bank

4. For the OTC market, the premium you are paying.

BTW, the high yield bonds are doing well

[cbsh38584]

Need your advice on American Income Portfolio, JF Asia Pacific Income (Alliance Bernstein) Fund (JPMorgan) and Templeton Global Total Return Fund? What do you think of the risk vs yield?

I bought Templeton global total return fund in 2011 @11.43. Dividend payout ave $320/mth base on SG$100k. But I sold off in late 2012 @11.78 as at that time I want a higher yield from individual bond like Shui On Chinese developer SGD straight bond 8%

This is a good fund. My banker recommend templeton global total return fund again. But price has moved up to 12 plus. This fund has performed very well. The return is > 8% including capital apreciation + dividend payout for the past few years. My banker told me that this fund is less sensitive to the rise of the interest rate as compare to other bond fund. I cant remember the reason he gave. Pls check with your banker.

For a new investor who want to invest in fixed income. Can start small amt with bond unit trust 1st like Templeton global total return fund (SGD).


rdgs,
Vic

[starrynight]

Because, if the price for some reason goes up, you might want to take profit; conversely, if the price drops for no reason, you might want to buy more

Assuming the company does not default, and you hold to maturity, you are generally "guaranteed" the capital plus yield. But do note that the bond fine print may allow the company to buy back the bond in certain conditions, e.g. get taken over, etc.

my impression is you put $250k in straight bond, why do we need to monitor the bond price ? is it the later date you enter, the lower yield you might get for this straight bond?

at the end of the day, the bond price will not go below your bought price level ,right?

meaning to say, you are guarantee capital + the yield stated at the end of the day for straight bond?

just want to clear my doubt..

[starrynight]

Thanks Vic for sharing!

This Petra Food bond is illiquid due to it small size issued 70m.So price is not accurate in Bloomberg. Sometimes, there is no seller at all . U just need to try U luck to Q at a lower price hoping some desperate seller want to sell to U. U need to fill up some form. For me, I just do a voice log on the phone with my banker will do. Dont need to fill form.

I will accept at 1.03. It need 75% of the bond holders consent which will likely exceed 75% according to my banker. I still can sell in the mkt. The offer is quite attractive so I accept their offer @1.03. But I believe once U accept their offer @1.03. U are unable to sell.

rdgs,
Vic

[DC33_2008]

Thks for your advice. How about leveraging with this fund?

I bought Templeton global total return fund in 2011 @11.43. Dividend payout ave $320/mth base on SG$100k. But I sold off in late 2012 @11.78 as at that time I want a higher yield from individual bond like Shui On Chinese developer SGD straight bond 8%

This is a good fund. My banker recommend templeton global total return fund again. But price has moved up to 12 plus. This fund has performed very well. The return is > 8% including capital apreciation + dividend payout for the past few years. My banker told me that this fund is less sensitive to the rise of the interest rate as compare to other bond fund. I cant remember the reason he gave. Pls check with your banker.

For a new investor who want to invest in fixed income. Can start small amt with bond unit trust 1st like Templeton global total return fund (SGD).


rdgs,
Vic

[cbsh38584]

Thks for your advice. How about leveraging with this fund?

In 2011, this fund was underperform due to bad hedging of the currency. It did drop as low as 10.6 (my buy price is 11.43). But it recover by 3rd of 2012. The Yield is only est 3.8%. Your borrowing cost may be @ 1.5%. Not worth the risk. U can ask your qualified banker for more advise.



rdgs,
Vic

[DC33_2008]

Thanks for your impartial advice. It is always good to have second opinion.

In 2011, this fund was underperform due to bad hedging of the currency. It did drop as low as 10.6 (my buy price is 11.43). But it recover by 3rd of 2012. The Yield is only est 3.8%. Your borrowing cost may be @ 1.5%. Not worth the risk. U can ask your qualified banker for more advise.



rdgs,
Vic

[starrynight]

1 of several new issuances today:

Issuer:
Bharti Airtel International ( Netherlands ) BV
Guarantor:
Bharti Airtel Limited
Format:
144A/Regulation S
Status:
Senior, Unsecured, Guaranteed Notes
Guarantor Ratings:
BBB- (Fitch) / BB+ (S&P)
Expected Issue Rating:
BBB- (Fitch) / BB+ (S&P)
Currency:
USD
Size:
TBA
Tenor:
10 Year Bullet
Coupon:
5.5% area
Price:

Issue Date:
TBA
Maturity Date:
TBA
Use of Proceeds:
Repayment and refinancing of existing foreign currency indebtedness with the rest for general corporate purposes
Key Covenants:
• Limitation on Indebtedness
• Limitation on Liens
• Limitation on Consolidation, Merger and Sale of Assets
• Repurchase of Notes upon a Change of Control Triggering Event
Denominations
US$200K/1K
Joint Bookrunners:
Barclays/BNP/Citigroup/DB/HSBC/Standard Chartered/UBS
Expected Timing:
As early as today

[starrynight]

Another, but yield not stated:

ISSUER:
Swire Properties MTN Financing Limited
GUARANTOR:
Swire Properties Limited
GUARANTOR RATINGS:
A2 / A- / A (M/S&P/F) All stable
EXP. ISSUE RATINGS:
A2 (Moody's) / A- (S&P)
STATUS:
Senior, Unsecured
FORMAT:
Registered Reg S (off the EMTN Programme)
TENOR:
7-Year
ISSUE SIZE:
US$ Benchmark
TERMS:
HKSE Listing, U.S.$200k/1k Denoms, English Law
JOINT BOOKRUNNERS:
BofAML (B&D), HSBC, JP Morgan

[starrynight]

CDL bond launched today:

Issuer:
City Developments Limited
Status:
Senior, unsecured
Rating:
Unrated
Format:
Reg S, S274 & 275 of Singapore SFA
Tenure:
5 years
Issue Size:
TBD
Price:
100
Coupon:
2.45% SA, Act/365 (Fixed)
Issue Date:
14 Mar 2013
Maturity Date:
14 Mar 2018
Details:
SGD250K/MTN Programme/Singapore Law/CDP
Listing:
Not Listed
Sole Bookrunner:
DBS
Timing:
This week’s business, as early as today
Product Risk Rating:
P4

[starrynight]

Another one launched today:

Issuer:
PCCW-HKT Capital No. 5 Limited
Guarantors:
HKT Group Holdings Limited and Hong Kong Telecommunications (HKT) Limited
Expected Issue Ratings:
Baa2 (Moody's) / BBB (S&P)
Status:
Senior, Unsecured
Format:
Registered Form, Reg S
Size:
500m max
Tenor:
10-Year
Price Guidance:
T+220 Area (T~1.875%)
Terms:
SGX Listing, U.S.$200k/1k Denoms, English Law
Joint Bookrunners:
DBS, HSBC, SCB, ANZ, MS

[starrynight]

And another one:

Issuer:
AIA Group Limited
Guarantors:
A Stable (S&P)
Expected Issue Ratings:
A (S&P)
Status:
Senior Unsecured Fixed Rate Bonds
Format:
Reg S Registered off EMTN Programme
Size:
US$ Benchmark
Tenor:
5-year | 10-year
Initial Guidance:
1.95% area | 3.22% area
CT5+ 120 bps area | CT10+ 135 bps area
Listing:
HKSE
Denominations:
US$200k/1k denoms
Governing Law:
English
Clearing:
CMU Service / Euroclear Clearstream bridge
Global Coordinators:
Deutsche Bank (B&D) / Morgan Stanley
Active Bookrunners:
ANZ / HSBC / Standard Chartered Bank
Passive Bookrunners:
BNP PARIBAS / DBS Bank Ltd. / JP Morgan
Joint Lead Manager:
CIMB (no books)

[minority]

good stuff starynight.

[starrynight]

today's offering:

Issuer:
Wing Tai Holdings Limited
Issue Ratings:
Unrated
Status:
Senior, Unsecured
Format:
S274 & 275 and Reg S Bearer,Fixed Rate Notes
Size:
TBD
Tenor:
10 Years
Coupon:
4.15% - 4.35%pa, Semi-annual, actual/365
Details:
SGD250,000/Singapore Law/SGX-ST/CDP
Joint Bookrunners:
DBS
Timing:
As early as today's business
Risk Rating:
P4

[starrynight]

Buttercarp,

Results out. I got 72 lots from the ATM tranche. Applied 500 lots.

What a letdown for your friend!
I guess a lot of people hope to sell it on the first day.
What if the cornerstone investors all sell on first day .

Hubby tried to apply thru ATM today during lunch time but cannot get thru.
Perhaps lots of people were trying at the same time.

[starrynight]

Commentary:

New Issue Review : Wing Tai Holdings Limited SGD 10Y

by tradehaven Sounding out at 4.35% cpn for 10Y.
This company has come a long, long way from the time when I was involved in pricing their bonds.
They disappeared from the issuance radar, wisely, for 4 years before coming back with a vengeance after the crisis.

Coupon Maturity Curr MID PRICE AMT YIELD
Wing Tai Properties Finance Ltd 3.95 25-Jan-23 HKD n/a 480 MIO
Wing Tai Properties Finance Ltd 4.25 29-Nov-22 SGD 100.25 170 MIO 4.22%
Wing Tai Holdings Ltd 4.5 26-Sep-22 SGD 101.925 100 MIO 4.27%
Wing Tai Holdings Ltd 4 27-Jul-18 SGD 101 60 MIO 3.75%
Wing Tai Holdings Ltd 3.38 27-Jul-16 SGD 100.58 65 MIO 3.20%
Wing Tai Holdings Ltd 3.3 26-May-16 SGD 102.125 120 MIO 2.31%

Amazing changes in their balance sheets, which is hard to fault and sitting on a sizeable cash pile and running financial ratios that would put Capitaland, Guocoland and HPL in poorer light (apologies for the blasphemy).

So is 4.35% fair for 1o years ? The 10Y paper they did in Sep 2012 is going at 4.27% now.

Comparables.
Capitaland 4.3% 08/2020 3.53%
CMA 3.7% 08/2022 at 3.50%
Wingtai Properties 4.25 11/2022 4.20% (not Wingtai Holdings)

Their MTN programme is SGD 500 mio. Current oustanding SGD 345 mio, so this issue cannot be more than 155 mio.
The tenor of 10Y will prove to be the hard sell given the jitters in the past month on the end of easy money, the PB rebate is not too hot so I don't expect bankers to be chasing hard to close the deal unless they charge you above 100.00.
Pricing is fair and I will not let them wrangle more than 10 bp from me to give me under 4.25%. This is 10Y money we are talking about.

today's offering:

Issuer:
Wing Tai Holdings Limited
Issue Ratings:
Unrated
Status:
Senior, Unsecured
Format:
S274 & 275 and Reg S Bearer,Fixed Rate Notes
Size:
TBD
Tenor:
10 Years
Coupon:
4.15% - 4.35%pa, Semi-annual, actual/365
Details:
SGD250,000/Singapore Law/SGX-ST/CDP
Joint Bookrunners:
DBS
Timing:
As early as today's business
Risk Rating:
P4

[cbsh38584]

This Petra Food bond is illiquid due to it small size issued 70m.So price is not accurate in Bloomberg. Sometimes, there is no seller at all . U just need to try U luck to Q at a lower price hoping some desperate seller want to sell to U. U need to fill up some form. For me, I just do a voice log on the phone with my banker will do. Dont need to fill form.

I will accept at 1.03. It need 75% of the bond holders consent which will likely exceed 75% according to my banker. I still can sell in the mkt. The offer is quite attractive so I accept their offer @1.03. But I believe once U accept their offer @1.03. U are unable to sell.

rdgs,
Vic

Today, I rec'd a call from my Banker that Petra Food (S$250k) straight bond LTV has dropped from 60% to ZERO due to NO SELLER/BUYER. This is because there is a buyout from Petra food company @ a attractive price of 103 from the bond holders. It is take 6-7 mths to complete the buyout process. Initally, I maybe ask to top up or sell my profitable bond. But because of the Petra food buyout will be completed in 6-7 month time. They will accept Petra food bond with LTV as a exceptional case. LTV was Initially 70% when it was issued one the 1st day last year.

Because of sudden LTV dropped from 60% to zero & my payment US$261k premium for my universal life plan. My collateral is not enough for me to further invest anymore. My borrowing is already MAX out.

Any fall in the bond price > 10% ,I need to reduce my bond holding which are on leveraging or may need to top up (margin call).

So be careful when you buy small issued size bond which it very illquid. May not able to sell at a good price or sell at a lousy price during crisis time. So mentally prepare to hold till maturity.

rdgs,
Vic

[stl67]

Thanks Vic for the post

[Laguna]

Buttercarp,

Results out. I got 72 lots from the ATM tranche. Applied 500 lots.

Congrats!!!!!!!!
have you sold? good money...
I am still holding on to my 72 lots

[Laguna]

So be careful when you buy small issued size bond which it very illquid. May not able to sell at a good price or sell at a lousy price during crisis time. So mentally prepare to hold till maturity.

rdgs,
Vic

Min bond size as a rule of thumb...shall not be less than $500m

[starrynight]

Congrats to you too!

Yes, I sold all between 102 and 103. Was at airport waiting to catch a flight on Thur afternoon, so thought I'd better not chance the price dropping

You going to hold for long term?

Any other stock recommendations?

Congrats!!!!!!!!
have you sold? good money...
I am still holding on to my 72 lots

[Laguna]

Congrats to you too!

Yes, I sold all between 102 and 103. Was at airport waiting to catch a flight on Thur afternoon, so thought I'd better not chance the price dropping

You going to hold for long term?

Any other stock recommendations?

good money... will sell next week at 1.08, hard to clear 1.10

I spent the last two hours searching from HK to US.
short listed

1299.hk
0001.hk
0941.hk

US : alamah, forgot to write down.

The most wanted stock : samsung, but listed in Korea, so most likely will go in heavy into First State Dividend Advantage, with 5.1% in 0001.hk and 4.1% in Samsung and LTV of 4 times.

Will be selling more bonds next week

[Laguna]

I will be going thru Nasqad, searching for those companies, small cap but with excellent technologies, these are the main targets of take over, always, market premium is 50%.

Most the giants in Nasqad are now flooded with cash.

if anyone has any, please share