Chitchat Bond investors in Spore be careful

[Runifyouhaveto]

Oh oh, Wacoal just launched BLACK SWAN series in Singapore.
*hint hint*

http://www.wacoal.com.sg/products/NB5367

 

[abcdexyz]

What is that about?

 

[Runifyouhaveto]

So if a company bankrupt, bond holder get nothing?

How about share holders?

If a company sell to another company, like NOL? Bond holder also get nothing?

If Bankrupt, most bonds issued in Singapore are unsecured. You get what's left, before the preference and ordinary shareholders.

If Sell to another company, if there is a "Change of Control" Clause, you might get some reimbursement (higher yields) or they will make a full redemption with some small penalty. If there is no "Change of Control" Clause, there's no change for you, except that the risk is now higher/lower due to different ownership.

 

[Runifyouhaveto]

What is that about?

BLACK SWAN means an unpredictable or unforeseen negative event in financial market.
Market whispers that Deutsche bank will be the black swan in October.

 

[abcdexyz]

If Bankrupt, most bonds issued in Singapore are unsecured. You get what's left, before the preference and ordinary shareholders.

If Sell to another company, if there is a "Change of Control" Clause, you might get some reimbursement (higher yields) or they will make a full redemption with some small penalty. If there is no "Change of Control" Clause, there's no change for you, except that the risk is now higher/lower due to different ownership.

I thought nothing left to bond holders then share holders pay first?

 

[Runifyouhaveto]

KrisEnergy
Debt-stressed KrisEnergy exploring equity raising and asset sales
http://www.straitstimes.com/busines...ergy-exploring-equity-raising-and-asset-sales

KRISSP 6.250% 09Jun2017
Last Checked: 32% discount to par
https://www.bondsupermart.com/main/bond-info/bond-factsheet/SG6RD3000000

KRISSP 5.750% 22Aug2018
Last Checked: 40% discount to par
https://www.bondsupermart.com/main/bond-info/bond-factsheet/SG6SE5000004

 

[Runifyouhaveto]

I thought nothing left to bond holders then share holders pay first?

u mean rights-issue?
If the company no money and try to survive, a way out is to issue new capital or rights to pay off debts, including bond obligations.

 

[abcdexyz]

u mean rights-issue?
If the company no money and try to survive, a way out is to issue new capital or rights to pay off debts, including bond obligations.

If 'sell' to another company? Then bond holders get their money first or share holders?

 

[abcdexyz]

Thank you.

 

[johnny333]

There is Fed meeting a week before US elections. I don't think they should do anything.
There is one more before Thanksgiving and the current odds is about 50-65% because market cannot tell who will win and whether Yellen will be replaced.

Yellen and her vice-chair gave strong hints of Sept hike which did not happen. Bernanke and volcker had been more predictable in giving hints in recent memory.

"If" there is a rate hike then those investing in bonds would lose out right

 

[Runifyouhaveto]

If 'sell' to another company? Then bond holders get their money first or share holders?

Nope, usually there is a "Change of Control" Clause in the bond specification sheet.

https://www.divestopedia.com/definition/4746/change-of-control

 

[Runifyouhaveto]

"If" there is a rate hike then those investing in bonds would lose out right

usually true sir, but a lot of exceptions.

 

[krafty]

BLACK SWAN means an unpredictable or unforeseen negative event in financial market.
Market whispers that Deutsche bank will be the black swan in October.

The outstanding global derivatives market is over $700 trillion — 10 times global GDP. And amazingly, one bank, Deutsche Bank, owns about $75 trillion of those derivatives. That’s roughly 13% of all outstanding global derivatives. And Deutsche Bank is in trouble…With its tentacles extended throughout the world like a global grapevine, Deutsche Bank presents “systemic risk.” In fact, the IMF declared last month that Deutsche Bank poses the greatest risk to global financial stability.

Consider that Lehman Bros. was leveraged 31-to-1 before its 2008 collapse. Deutsche Bank is now leveraged over 40-to-1.

 

[Runifyouhaveto]

Noble Group
Did a massive rights issue to shore up their balance sheet but stills struggling.
IE Singapore is very reluctant to see them collapse but I think only COFCO can save them

Noble top-volume today as we speak.

Who will be the white knight

 

[Runifyouhaveto]

The outstanding global derivatives market is over $700 trillion — 10 times global GDP. And amazingly, one bank, Deutsche Bank, owns about $75 trillion of those derivatives. That’s roughly 13% of all outstanding global derivatives. And Deutsche Bank is in trouble…With its tentacles extended throughout the world like a global grapevine, Deutsche Bank presents “systemic risk.” In fact, the IMF declared last month that Deutsche Bank poses the greatest risk to global financial stability.

Consider that Lehman Bros. was leveraged 31-to-1 before its 2008 collapse. Deutsche Bank is now leveraged over 40-to-1.

This morning's article:
http://www.forbes.com/sites/francescoppola/2016/09/27/deutsche-bank-a-sinking-ship

 

[mojito]

So far, i listed 12 companies with bonds in distressed.

NOL
IHC
Rickmer
Marco POlo
Pacific Radiance
Ezion
Nam Cheong
Ezra
Deutsche Bank
Trikomsel
Pacific Andes
ASL Marine

We have unhealthy Oil Services and shipping companies in distress.
Even our top shipyards are still on billion-dollars worth of vessels and rigs whose buyers went bust.
So what that interest rates are low?
There is no liquidity in the market now for even healthy companies cannot refinance properly.

If our central bank does not recognize the magnitude of the problem, our financial system will be crashed.

Fret not Run. I sure the savvy firms borrowed in usd. Hehehe. Our financial system is sound, no problem. It like pass the bomb; you holding it when the music stops too bad for you. No one force you to play. Just rich men making money off dumb ones.

 

[OrLanChowHorFun]

Have you ever traded forex before? This was during the financial crisis where there were wild fluctuations in currency pairs. You could lose thousands in PIPs & I was using a normal account & not a micro account.

My loses did not occur in just 1 day. I held onto my trades hoping it would reverse but never did. I even topped up my account to remain in the trade.

i was using Oanda so i can enter very small trades.............but it's the same thing.........if no stoploss then going short can kill the account.........but if not using high leverage OR NO leverage even without stoploss...........going long won't kill the account..........unless there's negative swap and you hold the losing trades for years - account killed by negative swap...........

 

[abcdexyz]

Current situation still not the worst Scenario for oil companies arr?
I feel that drop enough Liao from its peak.

 

[johnny333]

i was using Oanda so i can enter very small trades.............but it's the same thing.........if no stoploss then going short can kill the account.........but if not using high leverage OR NO leverage even without stoploss...........going long won't kill the account..........unless there's negative swap and you hold the losing trades for years - account killed by negative swap...........

Why are you denying that you can lose big in forex

I have played both the stock market & the forex market, and today I have $$$ of stocks & they are even giving me dividends. In fact I get enough dividends that I can live from the dividends & still re-invest to accumulate more stocks.

Whereas I have lost big in the forex market & have plenty of regrets. If you ask the majority of people who have ever played forex, you will find the same story.

Even the pros are getting into trouble with forex e.g. The French trader working for a bank made large loses.

I find it easier to make $ in the equities market. The profits are smaller but so are the risks.

 

[abcdexyz]

Singtel prices US$500m 10-year notes at 2.375%

SINGAPORE Telecommunications (Singtel) said on Tuesday it has priced US$500 million of 10-year notes at 2.375 per cent.

The notes will mature in 2026, and will be drawn down under Singtel Group Treasury's S$10 billion Euro Medium Term Note Programme guaranteed by Singtel (Programme).

They have been rated Aa3 by Moody's and A+ by Standard & Poor's, and have been picking up strong demand from a wide range of investors, Singtel said in a filing to Singapore Exchange (SGX).

"This issue is part of the long-term financing strategy and extends the debt maturity profile of Singtel and its subsidiaries," it said.

Application has been made for the listing and quotation of the notes on SGX, it added.

DBS Bank, HSBC and Morgan Stanley Asia acted as joint lead managers and bookrunners.

http://www.businesstimes.com.sg/com..._medium=Social&utm_source=Facebook&xtor=CS1-3