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Thread: 3-month SOR and 2-month Sibor hits new high

  1. #31
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    Quote Originally Posted by teddybear View Post
    Your comments is laughable.
    Oh, if so, those who take up Fixed Rate loan in the short-end! Ouch! Those who take up Fixed Deposit pegged loan (eg FHDR) with super high spread for long term also at short end! (Wow! DBS make big money!)
    And all those "anticipation" about rate increase and SIBOR being jacked up by banks like no tomorrow - consumers also at the short end!


    You were saying the above were laughable?
    I agree.

    It's like..

    If you are born in a rich family, you will die...
    If you are born in a poor family, you will die...
    If you are born in singapore, you will die...
    If your parent is a teddybear, you probably won't die then.

    I do recall the movie Ted, whereby the Teddybear didn't die.

  2. #32
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    You prata king ah. Say banks colluding with each other (to raise SIBOR) to screw consumers. Then when you realise interest rate has been so low for the past 7-8 years, now sing another tune. Really joker.





    Quote Originally Posted by teddybear View Post
    Your comments is laughable.
    You mean they are doing charity to keep the interest rate low?
    And how much are they paying in deposit rate if they are charging that low rate + a 1% (or more) margin?
    No wonder some have to come with "creative" loan packages other than SIBOR pegged....
    You still don't understand how the rate is being derived that is why it is so low?

  3. #33
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    in defense of teddy, nobody ever hear of teaser rates or loss leaders?
    now that property market is down, loan book is not growing, no more new fishes that will bite. time to hike up the rates for the rest of the 22-23 years

    anybody paying attention to the capital flows?
    http://www.tradingeconomics.com/singapore/capital-flows
    with capital outflows, will competition for funds drive up the SIBOR/SOR/FD rates?

  4. #34
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    Quote Originally Posted by hopeful View Post
    in defense of teddy, nobody ever hear of teaser rates or loss leaders?
    now that property market is down, loan book is not growing, no more new fishes that will bite. time to hike up the rates for the rest of the 22-23 years

    anybody paying attention to the capital flows?
    http://www.tradingeconomics.com/singapore/capital-flows
    with capital outflows, will competition for funds drive up the SIBOR/SOR/FD rates?
    I though the reason for capital outflows is because of the low interest rate in the first place. If the interest rate is higher, there will be more capital inflows.

  5. #35
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    In theory, a 1-month sibor for the next 12 months will be the current 12-month sibor (ie. fixed rate for next one year). Unless you are an expert in forecasting the swap curve over the next 12 months, it does makes sense to hold on to current floating loan with low spread.

    If the current loan is at 1-month sibor + 0.85% for thereafter years, would you take the risk to refinance it at fixed rate for 2-3 years, and then take on the risk to re-finance again that will end up with a higher spread (more than 0.85%?

  6. #36
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    I would say the "Ouch" will apply to those:

    If you have a floating + low spread, and you refinance it with Fixed Rate = ouch!
    If you have a floating + low spread, and you refinance it with FHDR = ouch!

    imho, i think those with low spread should resist the temptation to refinance to fixed rate. Is the current spread in today's market in region of 120bps?

  7. #37
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    Quote Originally Posted by Ilikeu View Post
    I would say the "Ouch" will apply to those:

    If you have a floating + low spread, and you refinance it with Fixed Rate = ouch!
    If you have a floating + low spread, and you refinance it with FHDR = ouch!

    imho, i think those with low spread should resist the temptation to refinance to fixed rate. Is the current spread in today's market in region of 120bps?
    totally agree with you ...


    Floating all the way ...

    With the market slowing down so much, i am pretty sure, the banks' housing loan books have shrunk.

    And this has always been one of the most profitable books in any bank.

    Give it a little more time, even if rates go up a bit, banks will start to give some perks...

    no matter what scenario, Floating rate never go wrong.

  8. #38
    Global recession is coming....

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    Agreed with you two!

    Now now, anybody don't understand the rationale?

    If don't understand, should consult proud owner or Ilikeu.
    It is difficult to get such impartial advice where the advisor don't benefit and/or get anything in return.........

    Quote Originally Posted by proud owner View Post
    totally agree with you ...


    Floating all the way ...

    With the market slowing down so much, i am pretty sure, the banks' housing loan books have shrunk.

    And this has always been one of the most profitable books in any bank.

    Give it a little more time, even if rates go up a bit, banks will start to give some perks...

    no matter what scenario, Floating rate never go wrong.
    Quote Originally Posted by Ilikeu View Post
    I would say the "Ouch" will apply to those:

    If you have a floating + low spread, and you refinance it with Fixed Rate = ouch!
    If you have a floating + low spread, and you refinance it with FHDR = ouch!

    imho, i think those with low spread should resist the temptation to refinance to fixed rate. Is the current spread in today's market in region of 120bps?

  9. #39
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    Quote Originally Posted by teddybear View Post
    Agreed with you two!

    Now now, anybody don't understand the rationale?

    If don't understand, should consult proud owner or Ilikeu.
    It is difficult to get such impartial advice where the advisor don't benefit and/or get anything in return.........
    Time will tell if the low spread tagged to sibor you get helps you in the long run, in any case, citibank have taught alot of people lesson.
    We will know in due course.
    Bank drops their sibor spread from 0.9,0.8 and 0.7 currently when sibor keep rising for the past year.

  10. #40
    Global recession is coming....

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    Hi minority, you got double body???

    Quote Originally Posted by thomastansb View Post
    You prata king ah. Say banks colluding with each other (to raise SIBOR) to screw consumers. Then when you realise interest rate has been so low for the past 7-8 years, now sing another tune. Really joker.

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