250k Genting or 250 Condo downpayment

[dtrax]

If you have the choice, would you put 250k into Genting bonds or 250k in condo down payment now? And why?

[ikan bilis]

i either buy genting shares (not bonds) or condo.... buy i do not like genting, so may be condo better...


heya... not a good time to buy shares, bond or real estates... keep ca$h better, and ""steer the rudder according to wind direction", check/see wind direction first....

[radha08]

i heard the coupon rate very good for the bonds so for 250k..what kind of return will you get after 5 years...

[dtrax]

5.074% per annum

[yjcai]

Preference shares or capital guaranteed.

[minority]

If you have the choice, would you put 250k into Genting bonds or 250k in condo down payment now? And why?

250K go RWS do a Big / Small. In 5min u will know good or no good.

[devilplate]

But this bond no expiry date leh....No no lor

Actually not advisable to buy bond when int rate at record low rite...?

[minority]

But this bond no expiry date leh....No no lor

Actually not advisable to buy bond when int rate at record low rite...?

Got to be a reason why all push out bond now right?

[testtest]

If you have the choice, would you put 250k into Genting bonds or 250k in condo down payment now? And why?

For me 250k to short the mkt....but I dun have so much

[espeyap]

5.074% per annum

I will borrow from bank, or do a cash out from my existing loan to buy the bond with 5% return and guarantee capital return. Since the interest rate is around 1-2%. A net 3% return without any risk.

And after, I will put all My saving to buy new property.

[devilplate]

I will borrow from bank, or do a cash out from my existing loan to buy the bond with 5% return and guarantee capital return. Since the interest rate is around 1-2%. A net 3% return without any risk.

And after, I will put all My saving to buy new property.

Nothing is guaranteed hor....tats y we got lehman bro saga

No expiry bonds i dare not touch man.....

[august]

5.074% per annum

not 5.375% ah? bank charge u comm?

[chiaberry]

Nothing is guaranteed hor....tats y we got lehman bro saga

No expiry bonds i dare not touch man.....

Agreed. Look carefully at the structure of the Genting bonds. They are not in the league of convertible preference shares.

There's no free lunch in the financial world. The higher the coupon the higher the risk.

[ikan bilis]

Genting Singapore eyes investments after bond pricing


Reuters
Thursday, Mar 01, 2012

SINGAPORE - Casino operator Genting Singapore said late on Thursday it was seeking new investment opportunities after pricing S$1.8 billion ($1.44 billion) worth of perpetual bonds at a lower-than-expected yield.

Genting will issue the perpetuals at par with a coupon of 5.125 percent, a quarter of a percentage point below the indicative yield of 5.375 percent per annum. Private banks accounted for 78 percent of the order book, which totalled S$6 billion.

"This issue will put us in a very strong position to tap investment opportunities for new revenue streams," Genting Chief Operating Officer Tan Hee Teck said in a statement.

Perpetual bonds, as the name implies, have no maturity date, but the Genting perpetuals will pay an additional one percentage point in interest if they are not redeemed within 10 years.

DBS Group and HSBC were global coordinators and joint lead managers for the issue by Genting, which is rated Baa1 by Moody's and A- by Fitch. Genting owns Resorts World at Sentosa, one of the city-state's two multi-billion-dollar casino-resorts.

DBS and HSBC said the Genting perpetuals issue was the largest-ever single-tranche bond issue denominated in Singapore dollars, demonstrating the increasing depth of Asian local currency bond markets.

[minority]

Genting Singapore eyes investments after bond pricing


Reuters
Thursday, Mar 01, 2012

SINGAPORE - Casino operator Genting Singapore said late on Thursday it was seeking new investment opportunities after pricing S$1.8 billion ($1.44 billion) worth of perpetual bonds at a lower-than-expected yield.

Genting will issue the perpetuals at par with a coupon of 5.125 percent, a quarter of a percentage point below the indicative yield of 5.375 percent per annum. Private banks accounted for 78 percent of the order book, which totalled S$6 billion.

"This issue will put us in a very strong position to tap investment opportunities for new revenue streams," Genting Chief Operating Officer Tan Hee Teck said in a statement.

Perpetual bonds, as the name implies, have no maturity date, but the Genting perpetuals will pay an additional one percentage point in interest if they are not redeemed within 10 years.

DBS Group and HSBC were global coordinators and joint lead managers for the issue by Genting, which is rated Baa1 by Moody's and A- by Fitch. Genting owns Resorts World at Sentosa, one of the city-state's two multi-billion-dollar casino-resorts.

DBS and HSBC said the Genting perpetuals issue was the largest-ever single-tranche bond issue denominated in Singapore dollars, demonstrating the increasing depth of Asian local currency bond markets.

hmm Baa1

Bonds with credit ratings of BBB+ or Baa1 are called “Investment Grade” bonds meaning that they are a stabilizing force in a portfolio where the interest rates will tend to stay fairly constant and there is a very good, almost guaranteed, chance on a return on your investment. Bonds with a credit rating below BBB+ or Baa1 are called high yield or “junk” bonds. These bonds are popular with traders because of the fact that their interest rates and therefore the price on the bonds fluctuates regularly making speculation popular and arbitrage possible.

[eng81157]

i dislike genting's business so won't even consider touching its bonds or shares

[roly8]

i dislike genting's business so won't even consider touching its bonds or shares

care to share why?

[eng81157]

it's a gambling business. two industries i won't ever touch - cigarettes and gambling

[chiaberry]

it's a gambling business. two industries i won't ever touch - cigarettes and gambling

Tobacco shares are good performers though. Imperial Tobacco and BAT (UK market shares) have decent capital appreciation and dividends. Anyway S'pore market don't have tobacco players.

[roly8]

it's a gambling business. two industries i won't ever touch - cigarettes and gambling

thx for sharing

[eng81157]

Tobacco shares are good performers though. Imperial Tobacco and BAT (UK market shares) have decent capital appreciation and dividends. Anyway S'pore market don't have tobacco players.

beyond singapore's shores lah......

[radha08]

Nothing is guaranteed hor....tats y we got lehman bro saga

No expiry bonds i dare not touch man.....

what does NO expiry mean lets say 3 years down the road u need ur 250k then how..

[ikan bilis]

what does NO expiry mean lets say 3 years down the road u need ur 250k then how..

umm... you can always sell to me at 50% hair-cut...
i think there were a time when bank's preference shares crashed until jialat jialat... like 15-20% below face value??...

[radha08]

umm... you can always sell to me at 50% hair-cut...
i think there were a time when bank's preference shares crashed until jialat jialat... like 15-20% below face value??...

oh ok i get the picture basically ur 250k not guranteed safe...hmm in that case better buy property...

[eng81157]

what does NO expiry mean lets say 3 years down the road u need ur 250k then how..

perpetual bonds mean u can redeem them anytime at its current value, though usually there's a minimum period to it.

time-period bonds, e.g. 5 year notes, mean that after the stated time period, the company will redeem them by guaranteeing to purchase it at its original value. hence, you get your capital back plus interest.

[dtrax]

umm... you can always sell to me at 50% hair-cut...
i think there were a time when bank's preference shares crashed until jialat jialat... like 15-20% below face value??...

ya but like mr B said, I sit tight tight get coupon for my ocbc pref shares value still went up after that

[dtrax]

perpetual bonds mean u can redeem them anytime at its current value, though usually there's a minimum period to it.

time-period bonds, e.g. 5 year notes, mean that after the stated time period, the company will redeem them by guaranteeing to purchase it at its original value. hence, you get your capital back plus interest.

So if you need to sell urgently at the point of time you wanna redeem, pray hard hard its urrent value is more than its initial value you bought, that's the catch

[radha08]

perpetual bonds mean u can redeem them anytime at its current value, though usually there's a minimum period to it.

time-period bonds, e.g. 5 year notes, mean that after the stated time period, the company will redeem them by guaranteeing to purchase it at its original value. hence, you get your capital back plus interest.

tks all this is new to me...

[roly8]

perpetual bonds mean u can redeem them anytime at its current value, though usually there's a minimum period to it.

time-period bonds, e.g. 5 year notes, mean that after the stated time period, the company will redeem them by guaranteeing to purchase it at its original value. hence, you get your capital back plus interest.

thx for the info.

[roly8]

anyone know if the DBS lehman minibond is perpetual or time period bond?