Singapore - Bonds

Re: Singapore - HDB Medium Term Notes

Postby memphisb » Tue Jun 15, 2010 6:13 am

thanks guys for all the inputs.

Its a piece of pie thats not available readily to us. :(
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Re: Singapore - HDB Medium Term Notes

Postby kennynah » Tue Jun 15, 2010 1:55 pm

1000 book challenge. 12 down, 980 to go


i need to call my maths teacher for extra lessons :mrgreen:
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Re: Bond Loans ( traded on SGX )

Postby LenaHuat » Mon Jul 12, 2010 5:40 pm

PUB is issuing 12-year papers, coupon rate @3% at board lots of S$250,000.
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Re: Bond Loans ( traded on SGX )

Postby kennynah » Mon Jul 12, 2010 6:27 pm

Thanks for the info, L :)

Can't say this excites me..

If I was 26, I'm better off taking a larger risk with the potential of a larger reward. If I was in my mid-life, i'd rather look at using 250k to invest in hard assets. If I was an old man, 12 years is too far into the unknown future..
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Re: Bond Loans ( traded on SGX )

Postby LenaHuat » Mon Jul 12, 2010 7:54 pm

Hi K :D
I know. At this stage of my life, it doesn't interest me. But if I'm 80, it might cuz better than FD and tradeable (most likely thin) on SGX.
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Singapore - Housing 12 (Mar 11 - Apr 11)

Postby behappyalways » Sat Mar 19, 2011 6:03 pm

Just to share some infor.

A relative was telling me he was going to re-mortgage his fully paid house. He would get 70% of his house valuation. The interest cost would be Sibor + 0.75%......around 1% at the moment. What he intends to do is to use the cash to buy bonds. Did not countercheck his infor but he was telling me, Hyflux's bond is 4.6%, Guocoland is 4.9% and Great Eastern 4.3%. All he needs is to just sign on and his bankers would do the job and the bank would pay for the lawyer fees. He is earning a spread of 3% although the spread would lower when Sibor inches up.

One thing come into my mind. When we read in the news that many people are taking 2nd mortgages and etc, some of them could be like my relative. They have the cash to pay it full but they rather borrow to earn extra $$$.
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Re: Singapore - Housing 11 (Jan 11 - Mar 11)

Postby winston » Sat Mar 19, 2011 6:39 pm

Hi behappyalways,

The following are my initial impression:-

1) When interest rates goes up, bond prices will come down.

2) And when interest rate spiked up sharply, the bonds would come down a lot in price, very quickly.

3) Need to also look at the terms of the bonds and whether they are callable or not. The companies will always select against you.

4) In times of crisis, the company may default . During the AFC, some blue-chip companies defaulted.

5) If the property value dropped by more than 30%, he will be required to top up on the amount.

Looks like an easy way to make some money but we all know that there's no free lunches.

And if there were free lunches, Lehman, Bear Stearn, GM and AIG will not be affected.... :P
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Re: Singapore - Housing 11 (Jan 11 - Mar 11)

Postby behappyalways » Sat Mar 19, 2011 6:59 pm

H Winston,

yes what you said is quite true. He bought the bond $1 par bond at $1.0025 and he is ready to pay back the loan in cash when interest starts to go against him

winston wrote:Hi behappyalways,

The following are my initial impression:-

1) When interest rates goes up, bond prices will come down.

2) And when interest rate spiked up sharply, the bonds would come down a lot in price, very quickly.

3) Need to also look at the terms of the bonds and whether they are callable or not. The companies will always select against you.

4) In times of crisis, the company may default . During the AFC, some blue-chip companies defaulted.

5) If the property value dropped by more than 30%, he will be required to top up on the amount.

Looks like an easy way to make some money but we all know that there's no free lunches.

And if there were free lunches, Lehman, Bear Stearn, GM and AIG will not be affected.... :P
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Re: Singapore - Housing 11 (Jan 11 - Mar 11)

Postby peter » Sat Mar 19, 2011 7:56 pm

Hi behappyalways,

Do you know how can one buy these bonds you mentioned, and is there any minimum quantity? I dont think they are listed in sgx.

I think they can be good alternative means to park some money too, especially Sin fixed deposits are paying nothing and the high inflation.
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Re: Singapore - Housing 11 (Jan 11 - Mar 11)

Postby behappyalways » Sat Mar 19, 2011 8:07 pm

Hi Peter,

those bonds are listed in SGX and there is a minimum investment amount....You need to ask your remiser or financial advisers for I think they cross-sell these products. The bonds are issued at par $1 and my relative got it from his bankers by paying a 0.25% fee, so his cost is 1.0025.


For reading interest

http://www.h88.com.sg/article/Why+inves ... an+stocks/
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