Used to be a good idea to leverage on HDB bonds.. heard some banks offer 90% leverage.. now with hdb gaining AAA rating.. yields will drop. I remembered last year there was a 15y bond at close to 4%pa
Used to be a good idea to leverage on HDB bonds.. heard some banks offer 90% leverage.. now with hdb gaining AAA rating.. yields will drop. I remembered last year there was a 15y bond at close to 4%pa
Dci on aud sgd is not bad. Citibank Dci allow strike and knock out price. 2 tier. Less risky. 4 to 5%
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
.
My banker did not inform about the 3.98% HDB bond (LTV 85%)15 yrs tenor during the pre IPO. The reason is that they don't
get commission. I came to know from other source. He told me the coupon is low 3.98% for 15 year tenor. Anyway,
I did apply for S$1m but was not allocated. I should have bought on the 1st day of trading @101+ but find the bond
price abit high. One year later, it was trading at 107/109. Just week ago, Moody gives HDB AAA rating. I think the
price may have gone up >109.
Last year (2014) , I did apply S$250k for 3.008% HDB bond 7 yrs tenor during IPO. Surprisingly, I got the allocation. Six
month later, I sold off at around 3k+ profit. Will look buy again if the price correct to a attractive level for a AAA rated bond.
Can sleep very well at nite.
I bought OLAM SGD 7% perp bond & USD 5.7% straight bond because of Temasek (before the muddy water attack) in 2012.
When muddy water report fault OLAM accounting. OLAM SGD 7% perp dropped from 98 to 72 & the USD 5.75% bond dropped
from 100 to 80. I was very stress but decide to ride through the crisis as I believe in Temasek.
Luckily, Temasek decides to increase their stake & now own 58%. I sold my USD 5.7% bond @102.5. Now trading@104.
I decide to keep the SGD 7% perp bond. May keep it till the callable date in 2019. Now trading@102.
I am looking at NOL bond which Temasek which huge stake in it. NOL is not doing well & just report millions of $$$ losses.
A potential takeover. If NOL will to default in it bond . I cant imagine what will happen to other Temasek big stake in capland ,
SIA , OLAM etc , the SGD investment grade & junk bond & eventually S'pore AAA rating reputation.
1 gentle opinion . Invest with cautious, big boy can withstand a small blow or they exit quicker than us.
Neptune Orient Lines Ltd 4.25% due 26/04/2017
price @102.00 in May'15. OCBC fixed income research team recommend over weight on NOL 4.25%.
Price drop to 100.2 in Aug15. OCBC fixed income research team still recommend over weight on NOL 4.25%
I do not know the price now. So need to find out more on the NOL 2017 bond outlook if it is being taken over
by potential investors.
Temasek sold loss making Stat chip to Chinese investors. The bond 4.5% due 2018 is still trading at around par.
It is recommended by CS & OCBC. It is one of the top holding at Fullerton Asian bond fund. I think NOL bond is also
one of fullerton bond portfolio if I can recall.
The NOL 4.65% bond (LTV 55) price was 95+ in Sept15. Callable date is 9/9/2016. Likely
not to be called if FED raise rate in 2016.
NOL 4.25% bond due 2017 price should be around 100. Still got 1.5 yrs left. I go for
short dated bond if the price is attractive (under 100).
Your RM is right that Aug15 mth was a sell down for emerging bond especially from China.
I bought RMB$1m China developer, Evergranda CNY 9.25% due Jan 16 @97.7 at Xrate 6.4080 in Aug15.
Now price is @100.25 & Xrate is 6.32.
FYI, Evergrande USD 12% bond due 2020 price was 98 in Aug15. I have been eyeing this bond for many
months. Keep asking my own RM & other RM through friends. All they say is AVOID. Too highly leverage.
But I am only interested in trading this 12% USD bond due to it HY (12%). But eventually I go for Evergande
CNY 9.25%. Today , the price for the evergrande 12% USD bond is @109 (Aug was 98). Easily US$20k profit
within 3 mths.
Theres some things which i dont quite understand.. i know banks offer LTV based on the credit rating of bonds. From what i see, there are some bonds which are not rated but yet are offered a higher LTV than rated bonds eg NOL and some junk bonds like swiber. Anyone know how do they determine this?
You are right that some Junk bond offer higher LTV. Eg Junk bond Trikomsel 5.25% LTV is 65%. Now Trikomsel has defaulted.
Lippomall LTV55%-65% in foreign banks. Local banks ZERO. Many Chinese developer LTV is between 50% to 65% for foreign
banks. Most local banks is ZERO. From what I know, the foreign banks like to give higher LTV in order to "encourage" PB investors
to leverage. My banker told me the past 2 mths + is really bad for their biz. Less PB investors dares to trade after China devalue
the RMB in Aug15. He says if the trading activity continue to be poor, sooner or later the foreign banks will have to cut cost & eventually
will be asked to leave.
I guess it also depends on which tier of PB you are in? I am at the most basic tier and the range i am offered (foreign banks) is very limited. Some RMs are also giving very bad advice... asking me to buy bonds trading above par and then saying that with leverage i get a better yield. I recently just closed off one of my PB platform becoz the spread they take is huge.
The SGD borrowing rate has just moved up from 2.16% to 2.6%. No more SGD bond for me as it is too expensive to
borrow. Also the risk is much higher for Junk bond in a rising rate environment going into 2016.
For the last 4 mths +, I have been doing DCI (dual currency investment) or Finer (another name of DCI) pairing
SGD (base) against Aus striking range between 0.99-0.975 yield 4%-6%.
SGD Vs USD @1.37 yield 4%
EURO VS [email protected] yield 5%.
EURO VS USD @1.15 yield 6%
I am looking at SGD (base) vs GBP strike @2.12 (bullish on pound). In 2003, GBP Xrate was 2.62. In 2007 , it was 3.02.
This coming Fri is the release of the important US jobs data & unemployment rate 5.1% - higher or low ?
It is bad, good for emerging mkt stock & bond as the Dec rate hike will likely to move next Mar16.
Anyone know about the Julius Baer bond IPO around 5 % perpetuate ?
No sure if any investors here have been exposed to BitCoin currency. The recent surge has been insane: https://www.coinbase.com/charts
To those who recently bought at ~$200, it has surged to almost $493 in the last 3 days
http://www.bloomberg.com/news/articl...-gigantic-tear
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Taiwanese Kidnappers Receive $1.68M Bitcoin Ransom from Billionaire Yuk-Kwan
https://www.google.fr/search?q=Kidna...sm=93&ie=UTF-8
Singapore News too slow.
Kepple reits issued a 5% bond. Is it worth buying?
https://secure.fundsupermart.com/mai...e=SG31A5000006
“Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
― Martin Luther King, Jr.
OUT WITH THE SHIT TRASH
https://www.facebook.com/shutdowntrs
December SAVING BOND rates have dropped to 2.44 - that is lower than CPF OA rate. Will they open SAVING BONDS for SRS soon?
http://www.sgs.gov.sg/savingsbonds/Y...nths-bond.aspx
For the 2017 bonds (NOLSP 4.250% 26Apr2017 Corp (SGD)), the terms of the bonds include the option of an acquirer of NOL (under a change-of-control trigger) to call back the debt of the company; should the acquirer not do so, the 4.25% coupon will actually be stepped up by 150bps to 5.75%, which would provide the bondholder with an additional return over the bond.
I bought Pacific International Lines (PIL), 5.9% SGD BOND due 17jul2017 @100 on Jul14.
Just last week, Pacific International Lines Sold 3-Year SGD 7.25% Bond due Nov'18.
I do not know why 3 bookrunners are needed for a small issued S$130m issue size.
The worst is that they are giving out a HIGH LTV 70% for this junk bond. I believe
they are giving high LTV 70% to entice investors to buy. Price to [email protected].
I am not so comfortable about this PIL companies if there is another lehman type crisis
comes again. I may sell away for PIL 5.9% bond due Jul17 at min loss.