Singapore Bonds

[Runifyouhaveto]

Meltdown in local O&G bond prices, approximate-yields

>25%pa Yield (considering price below value)
Swiber 5.55%
Vallianz 7.2%

>20%pa Yield (considering price below value)
Vallianz 7.25%
Otto 7%
Ezra 8.75%

>15%pa Yield (considering price below value)
Swiber 6.25%
Swiber 6.5%
Swiber 7%

>10%pa Yield (considering price below value)
Ezra 4.875%
Falcon 5.5%
Mencast 5.5%
Geo Resources Energy 7%

Compare: Greek govt bonds is 15% yield

 

[bart12]

Stock vs corporate bond on 6-29

 

[Runifyouhaveto]

Stock vs corporate bond on 6-29

View attachment 22096

Just hide in those good short-term SGD bonds that matures in less than 3 years

 

[dancingshoes]

Just hide in those good short-term SGD bonds that matures in less than 3 years

i think it's a wise choice, our economic cycle is getting shorter, that meaning is safer to invest in short term bonds rather than 10 year ones, cos' too many things can happen in a long time.

 

[Runifyouhaveto]

Manulife Unit Delays Singapore Listing as Markets Sour
http://www.nasdaq.com/article/manul...ng-as-markets-sour--2nd-update-20150705-00051

Target IPO price was around $0.82 which compromised the yield %.
Market was seeking better target-yields from Manulife as SGD bonds from many reputable mega companies from overseas are giving 7% for their <36-months bonds in the local bond market.

 

[Runifyouhaveto]

Just hide in those good short-term SGD bonds that matures in less than 3 years

Shorter-dated tenors were popular in the first half. Issuances averaged 4.3 years, down from 4.9 years in the same period last year, said the report, which was released last week. Shorter-tenure bonds have lower duration risk and so fare better amid rising interest rates.
http://www.straitstimes.com/business/companies-markets/fewer-new-bonds-amid-fears-of-us-rate-hike

 

[eErotica69]

Any SIBOR or SOR link Fixed income instruments?

 

[Runifyouhaveto]

Any SIBOR or SOR link Fixed income instruments?

I think you are refering to "floating-rate" bonds - quite rare in Singapore
Maybe Singapore Saving Bonds are relevant (correlated) to your requirements

 

[Runifyouhaveto]

OCBC: S-Reits may be in for near-zero total returns until end-16
http://www.businesstimes.com.sg/com...for-near-zero-total-returns-until-end-16-ocbc

It means you might as well buy bonds from S-Reits, get at least 3-5%pa from the good listed issuers.

 

[Runifyouhaveto]

OCBC Bank SGD PerpNC5 Additional Tier 1 - IPG @ 4% area

Source: http://www.reuters.com/article/2015/08/18/ocbc-debt-bonds-idUSL3N10T17720150818
SINGAPORE, Aug 18 (IFR) - Oversea-Chinese Banking Corporation has kicked off bookbuilding on its first Basel III-compliant Additional Tier 1 issue, which is expected to generate keen interest.

The non-cumulative, non-convertible perpetual with a call at year five is being marketed at a guidance of 4 percent area.

There is a reset to a new fixed rate equal to the five-year Singapore dollar SOR plus the initial spread.

The trigger event will be when either the Monetary Authority of Singapore notifies the bank that a write-off is necessary or the MAS decides on a public sector injection of capital. When this happens, a partial or full writedown will be imposed on the bondholders.

Just my 0.02... ...
OCBC is a safe bank
However, AT1 is a riskier type of perpetual bonds from the OCBC, it will be prioritized next to Coco Bonds in the event that the bank faces $$$ problem.
4% is indicative, it is likely that they will priced it at 3.x% eventually.
The yield is very low, OCBC launched 4%(final pricing) Perp Bond a few years ago when SIBOR was lower.

 

[Runifyouhaveto]

Comparisons:

OCBC Max.4% - Renowned local bank
Giti Tire 6% - Major Tire manufacturer in Indonesia and China, opening US factory
FCL 3.65%- Property giant owned by Thai tycoon Charoen with significant interest in expanding Australian business


OCBC
Yield: Max 4% (to be confirmed)
Duration - Non-Callable 5 years, Perpetual
Bond Denominations - 250K

Giti Tire 6%
Yield: 6%
Duration - 3 Years (appx. 27 more months), Non-perpetual
Bond Denominations - 250K

FCL 3.65%
Yield: 6%
Duration - 7 Years (appx. 80 more months), Non-perpetual
Bond Denominations - Retail-size (small)

 

[vomitblood]

is it a good deal?

 

[Runifyouhaveto]

is it a good deal?

Nothing wrong with it as OCBC is very safe
but they brought Wing Hang (China Exposure), so we dunno if they will face write-offs in future like DBS's rendezvous with Dao Heng Bank.

Risk:
if our local banks collapse like Irish banks
(There are rumours of a tough 2016 year for banks - http://sammyboy.com/showthread.php?212383-Singapore-After-The-Next-Election&p=2256350#post2256350 )
then u face massive capital losses because AT1 bonds are riskier than normal bonds.
Redemption is likely but not guaranteed

If nothing happens,
4% for 5 years in a raising interest-rate environment is also less attractive now.
4% is good if it was for retail tranche, but this is 250K a pop.

That's why i cited another 2 bonds for comparison purposes.

 

[Runifyouhaveto]

OCBC priced $500m NC5-AT1 bonds at 3.8%
http://infopub.sgx.com/FileOpen/OCBC_S$AT1_Capital_Securities-Pricing_Announcement_18Aug2015.ashx?App=Announcement&FileID=365789

Not much meat for bond investors

 

[Runifyouhaveto]

Re: Interesting Bond issues

Aspial to roll out 5-year 5.25% retail bonds
http://www.straitstimes.com/business/companies-markets/aspial-to-roll-out-5-year-525-retail-bonds

Thread carefully
Please note that Aspial has hundreds of millions worth of bonds outstanding in the secondary market.

 

[tryharder]

Re: Interesting Bond issues

Thanks, good warning. I was surprised to see the news this morning. Caveat emptor.

Aspial to roll out 5-year 5.25% retail bonds
http://www.straitstimes.com/business/companies-markets/aspial-to-roll-out-5-year-525-retail-bonds

Thread carefully
Please note that Aspial has hundreds of millions worth of bonds outstanding in the secondary market.

 

[Runifyouhaveto]

Re: Interesting Bond issues

Thanks, good warning. I was surprised to see the news this morning. Caveat emptor.

In some quarters, debt-interests payment wipe out a huge part of their profit-margins

They can upsize the bond issue to $150m from $50-75m
It is like watever u apply (give them), they will take.

Just my 2 cents, please check with your financial advisors

 

[Runifyouhaveto]

LTA launched bonds
http://www.reuters.com/article/2015/08/20/lta-debt-bonds-idUSL3N10V2JK20150820

7 years - 2.57%pa

 

[Runifyouhaveto]

Re: Interesting Bond issues

Possible new issue coming up:
http://www.dealstreetasia.com/stori...nche-to-50m-cuts-public-tranche-to-25m-10755/
OUE Commercial Reit has launched a S$1.5 billion, multi-currency debt issuance programme. Under this programme, the debt is guaranteed by its trustee, DBS Trustee Limited.

 

[eErotica69]

Re: Interesting Bond issues

Bro run, what you think of the Aspiral 5-year Bond at 5.25% interest? You think it will be over subscribed?

I am seriously thinking of bidding at least $50K.