Singapore Bonds

[winnipegjets]

Re: Interesting Bond issues

i am interested to buy the three Singapore bank bond.But i do not have bank remisier. what can i do?
i dont think my net asset is enough to apply for private banking leh.

You will do much better buying shares of Coca Cola or Pfizer.

 

[winnipegjets]

Re: Interesting Bond issues

this coupon rates are fantastic!!!even better than dividend stocks,but i do not have 250k to gamble on a single issue.....is there a bond index fund i can buy?with high high yield.

https://www.spdrs.com/product/fund.seam?ticker=SJNK

Here are three fixed-income ETFs that hold great long-term appeal.
1. PowerShares Senior Loan Portfolio ETF (BKLN)
These days, even junk bonds (also known as high-yield bonds) have become quite popular with risk-averse investors. As a result, their rising prices have pushed junk bond yields down into the 5% to 6% range. Yet these bonds carry considerable risk. If any particular bond issuer defaults, only 44% of the assets end up being recovered, according to Morningstar.
That makes this ETF comparatively more appealing: Because it holds senior secured debt of these high-yielders, it will suffer less if there are defaults. Roughly 65% of assets secured by senior debt are recovered in bankruptcy proceedings.
And investors can still get solid yields. This ETF distributed $1.20 a share in 2012 and is on pace to maintain that payout this year, equating to a 4.8% yield.
An added benefit: The bonds in this portfolio are "floating rate," which means their payouts would rise in tandem with eventually rising interest rates. That means the value of the bonds will also remain constant as rates rise, unlike many bonds that lose value as rates move higher.

2. Vanguard Long-Term Corp Bond Index ETF (VCLT)
If you are an active ETF investor, then you should always see what Vanguard has to offer. Vanguard focuses on low transaction costs, so the expense ratios among the ETFs are often the lowest in the segment. Just as important, Vanguard's risk-averse corporate culture means that the holdings in any portfolio have been vetted to ensure they aren't too risky.
And that sums up the appeal of this ETF. It has an expense ratio of just 0.12% and typically pays out roughly $4 a share in dividends every year, good for a 4.5% yield. The striking aspect of that yield is that this fund focuses on investment-grade bonds (rated BBB or higher) issued by companies such as General Electric (GE) and Wal-Mart (WMT). Many investment-grade bonds issued in recent quarters carry interest rates closer to 3%.

3. SPDR Barclays Capital Emerging Markets Local Bond ETF (EBND)
When investors think about emerging markets, they think about volatile economies that can create havoc for leading regional companies. Yet there's no reason to take on corporate risk in these markets when government bonds, which are far less likely to default, already offer solid yields.
This ETF is loaded with government bonds from Mexico, South Korea, Brazil, Poland and elsewhere. The average bond sports a 4.5% yield. Compare that with U.S. government bonds, which typically yield less than 2%.
Note that this ETF owns these bonds in the local currency, so an upward move in the U.S dollar would eat into gains (conversely, a drop in the dollar would aid this fund's returns). Still, the currency risk is something you should always look into when seeking international exposure.

 

[SNTCK]

Re: Interesting Bond issues

You will do much better buying shares of Coca Cola or Pfizer.

i am in 50% cash now.
waiting for correction to buy macdonald and apple .
facebook is good too

 

[winnipegjets]

Re: Interesting Bond issues

i am in 50% cash now.
waiting for correction to buy macdonald and apple .
facebook is good too

I stay away from social media stocks ...it is a fad, IMHO.

 

[SNTCK]

Re: Interesting Bond issues

I stay away from social media stocks ...it is a fad, IMHO.

Fb will be the future landmark!

 

[bart12]

Re: Interesting Bond issues

There is distinct difference between buying bond directly compared to buying to buying bond ETF/funds. I prefer buying bond directly as one has clear information about yield to maturity or yield to call. Whereas bond ETF/funds price is more dictated by the market when you sell , more like buying stocks.

 

[Runifyouhaveto]

Re: Interesting Bond issues

https://www.spdrs.com/product/fund.seam?ticker=SJNK

Here are three fixed-income ETFs that hold great long-term appeal.
1. PowerShares Senior Loan Portfolio ETF (BKLN)
These days, even junk bonds (also known as high-yield bonds) have become quite popular with risk-averse investors. As a result, their rising prices have pushed junk bond yields down into the 5% to 6% range. Yet these bonds carry considerable risk. If any particular bond issuer defaults, only 44% of the assets end up being recovered, according to Morningstar.
That makes this ETF comparatively more appealing: Because it holds senior secured debt of these high-yielders, it will suffer less if there are defaults. Roughly 65% of assets secured by senior debt are recovered in bankruptcy proceedings.
And investors can still get solid yields. This ETF distributed $1.20 a share in 2012 and is on pace to maintain that payout this year, equating to a 4.8% yield.
An added benefit: The bonds in this portfolio are "floating rate," which means their payouts would rise in tandem with eventually rising interest rates. That means the value of the bonds will also remain constant as rates rise, unlike many bonds that lose value as rates move higher.

2. Vanguard Long-Term Corp Bond Index ETF (VCLT)
If you are an active ETF investor, then you should always see what Vanguard has to offer. Vanguard focuses on low transaction costs, so the expense ratios among the ETFs are often the lowest in the segment. Just as important, Vanguard's risk-averse corporate culture means that the holdings in any portfolio have been vetted to ensure they aren't too risky.
And that sums up the appeal of this ETF. It has an expense ratio of just 0.12% and typically pays out roughly $4 a share in dividends every year, good for a 4.5% yield. The striking aspect of that yield is that this fund focuses on investment-grade bonds (rated BBB or higher) issued by companies such as General Electric (GE) and Wal-Mart (WMT). Many investment-grade bonds issued in recent quarters carry interest rates closer to 3%.

3. SPDR Barclays Capital Emerging Markets Local Bond ETF (EBND)
When investors think about emerging markets, they think about volatile economies that can create havoc for leading regional companies. Yet there's no reason to take on corporate risk in these markets when government bonds, which are far less likely to default, already offer solid yields.
This ETF is loaded with government bonds from Mexico, South Korea, Brazil, Poland and elsewhere. The average bond sports a 4.5% yield. Compare that with U.S. government bonds, which typically yield less than 2%.
Note that this ETF owns these bonds in the local currency, so an upward move in the U.S dollar would eat into gains (conversely, a drop in the dollar would aid this fund's returns). Still, the currency risk is something you should always look into when seeking international exposure.

Thank you for taking time to share all these, winnipegjets.
Too bad I need to spread some Reputation around before giving it to you again

 

[Runifyouhaveto]

Re: Interesting Bond issues

i am in 50% cash now.
waiting for correction to buy macdonald and apple .
facebook is good too

I sold 40% of my shares this year.
I will be selling another 20% in October.
I will keep the remaining 40% locally listed companies with India and Indonesia exposure.

 

[Runifyouhaveto]

Re: Interesting Bond issues

i am interested to buy the three Singapore bank bond.But i do not have bank remisier. what can i do?
i dont think my net asset is enough to apply for private banking leh.

SNTCK, many of us are not private clients. RUN is not also. Need $2m of investable $$$, excluding your residential property.

Priority/Premier/Preferred Banking clients needs about 200-250K to qualify.

And you don't even need 250K for local bank bonds; they are available in smaller denominations, listed on SGX mainboard. You can buy/sell them like normal SGX-shares. Please note that they are currently trading at a steep price premium (above par).

 

[Runifyouhaveto]

Re: Interesting Bond issues

A BIG THANK YOU TO BOSS SAM TO HELP ME ADJUST THE THREAD TITLE


In appreciation of Boss Sam's help, RUN will make his first aftermarket secondary bond recommendation for our retiree friends here to park their money.

Cheung Kong 5.125% Perpetual
http://em.cbonds.com/emissions/issue/20655
Lot Size: S$250K
Last Friday's Price: About 99 to 99.1 (including commission), excluding accrued interests.
Maturity: 2 more years (first-call date)

Advantage:
- The yields are high because this bond was issued years ago when interest rates were higher.
- Company owned by Mr Li Ka Shing's Cheung Kong Group. Cheung Kong Group owns properties and utility companies in HK.
- The parent company is ultra-rich now after offloading lots of assets in the past 1 year + their recent property launch is crazily oversubscribed in HK although property market is weak (they sold in micro 200sqft units). It is always safer to lend money to people who don't need to borrow.
- If they redeem back 2 years later, you enjoy 5.125%pa for 2 years + 1% bonus because it is trading below 100.

Risk:
- This is a shell-company based in offshore islands (for tax purposes), not based in Singapore or HK. (different jurisdiction).
- They are not legally obliged to redeem perpetual bonds. If they don't redeem back after on first-call date, you just continue to get 5.125%pa but the company's overal1 credit worthiness will be affected.


Objective: Buy bonds from safe issuers with short maturity. When property and market crashes 2-3 years later, switch from the matured bonds at 100% par to grab the bargains.

It is difficult to find such a good catch (safe company with 5% yield) with short maturity (2 years). Please note that RUN is not a professional or uni grad, therefore please seek your RM's advice on the underlying risks. That's all I know.


Please support our community. I hardly can find any place such so many locals anymore.

Mont Vert sized up 11 times over
http://www.thestandard.com.hk/news_detail.asp?art_id=147548&con_type=1
It reportedly received more than 4,200 subscriptions since Friday, marking 11-time oversubscription.

 

[SNTCK]

Re: Interesting Bond issues

SNTCK, many of us are not private clients. RUN is not also. Need $2m of investable $$$, excluding your residential property.

Priority/Premier/Preferred Banking clients needs about 200-250K to qualify.

And you don't even need 250K for local bank bonds; they are available in smaller denominations, listed on SGX mainboard. You can buy/sell them like normal SGX-shares. Please note that they are currently trading at a steep price premium (above par).

if need to pay premium. i rather not to buy..
thanks you anyway

 

[Runifyouhaveto]

Re: Interesting Bond issues

if need to pay premium. i rather not to buy..
thanks you anymore.

wait for new issues bro. but current yield pricing will be below 4% for our local banks, underperforming CPF-SA

 

[SNTCK]

Re: Interesting Bond issues

wait for new issues bro. but current yield pricing will be below 4% for our local banks, underperforming CPF-SA

i only left 300k ard..now thinking whether to invest in property or share.

 

[da dick]

Re: Interesting Bond issues

I stay away from social media stocks ...it is a fad, IMHO.

all high tech stocks are a fad. only very few actually earn money like google. even facebook don't earn enough money to support itself

 

[SNTCK]

Re: Interesting Bond issues

all high tech stocks are a fad. only very few actually earn money like google. even facebook don't earn enough money to support itself

u see the facebook and apple P/BV..and BVPS..
shocked to see this ratio!

but they still climb to the sky!

 

[Runifyouhaveto]

Re: Interesting Bond issues

i only left 300k ard..now thinking whether to invest in property or share.

Singapore is a small place. The property prices usually moves up up up down, up up up down, up up up down, up up up down. Owning a property is a good inflation hedge in long-term, eg. 10-30 years. But if you buy at the wrong time, you can be held-back for 5-15 years before hitting profitability (including cost of financing). So timing is essential because our lifespan is short.


Next, property prices have a long-term positive correlation with equity.
Usually property prices will big-crash if equity collapses.
So, if you wanna invest in property cheaply, you should be reducing your equity positions.

just my thoughts.

 

[winnipegjets]

Re: Interesting Bond issues

Singapore is a small place. The property prices usually moves up up up down, up up up down, up up up down, up up up down. Owning a property is a good inflation hedge in long-term, eg. 10-30 years. But if you buy at the wrong time, you can be held-back for 5-15 years before hitting profitability (including cost of financing). So timing is essential because our lifespan is short.


Next, property prices have a long-term positive correlation with equity.
Usually property prices will big-crash if equity collapses.
So, if you wanna invest in property cheaply, you should be reducing your equity positions.

just my thoughts.

Property isn't as liquid as equity. I can be out of equities in 3 days.

 

[SNTCK]

Re: Interesting Bond issues

Property isn't as liquid as equity. I can be out of equities in 3 days.

I still prefer property than equity.

thanks Run!

 

[Runifyouhaveto]

Re: Interesting Bond issues

10-Years Spanish Bond Yields Tumble Below 2.5% - Lowest In History
http://www.zerohedge.com/news/2014-07-28/spanish-bond-yields-tumble-below-25-lowest-history

2.5% for Spanish 10Y, there are so many bonds from good issuers that gives better yields that we discussed in this thread
OCBC 4% Pref is also 10Y, RUN will rather choose OCBC

European Bond Prices Rally to Record Highs
Wall Street Journal-46 minutes ago
http://online.wsj.com/articles/european-bond-prices-rally-to-record-highs-1406636262

 

[Runifyouhaveto]

Re: Interesting Bond issues

Bonds Surge From U.S. to Germany on Outlook for Record Low Rates
http://www.bloomberg.com/news/2014-...-germany-on-outlook-for-record-low-rates.html

Bonds are rallying from the U.S. to Germany to Australia on speculation the Federal Reserve will say today it needs to hold interest rates at a record low to support the world’s biggest economy. Ten-year yields were at or near 2014’s lowest levels in 21 of 25 developed markets tracked by Bloomberg.

- German 10-year bund yields dropped to a record 1.109 percent yesterday.
- The ECB and Bank of Japan are also holding borrowing costs at record lows to help maintain growth in their economies.
- The Fed will keep its target for overnight bank lending in a range of zero to 0.25 percent at the end of its two-day meeting today, based on a Bloomberg News survey of economists.