Bonds 01 (May 08 - Aug 10)

Re: Bonds 1 (May 08 - Jul 10)

Postby Chinaman » Thu Jul 29, 2010 3:01 pm

Oh guru K also dunno....let me ask g.o.d., hehe.
then comeback to tell you, hehe.
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Re: Bonds 1 (May 08 - Jul 10)

Postby b0rderc0llie » Thu Jul 29, 2010 3:24 pm

What I understand from the article regarding the bonds is what Kenny has mentioned : Lend me $250k indefinitely and I will pay you 6% interest a year. After 10 years, I will pay you interest 3.24% above 3mth Singapore swap offer rate. Also, after 10 years, I can choose to pay you back the principal + interest, and the deal is concluded.
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Re: Bonds 1 (May 08 - Jul 10)

Postby Chinaman » Thu Jul 29, 2010 4:37 pm

Where got such things lend indefinitely....what happen 1 day the bank kena bankrupt..then you need to ask the sky for money back...nothing is permanent in this universe.

This model look like those bank preference shares gives 6% - 4.5% range........

Aiya, sifu always knock my head..dun be greedy...if u dont understand dont buy...got spare money go open bottle, massage and holiday.....dun trust the bank too much, their money come from you...many lesson learnt oreli.. :mrgreen:
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Re: Bonds 1 (May 08 - Jul 10)

Postby kennynah » Thu Jul 29, 2010 6:20 pm

That's why pple bought into Lehman notes.. insurance against such lender collapse mah.. mana zai, insurer collapse instead.

Agree, spend some on bottles, massage, jay chou concert, holiday, fishing trip, fine dining with family, get an iPad to play chess, makan double XO liew lian, etc

No need always chase after $$, $$ will sometimes come knocking at doorstep
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Re: Bonds 1 (May 08 - Jul 10)

Postby b0rderc0llie » Thu Jul 29, 2010 6:28 pm

Chinaman wrote:Where got such things lend indefinitely....what happen 1 day the bank kena bankrupt..then you need to ask the sky for money back...nothing is permanent in this universe.

This model look like those bank preference shares gives 6% - 4.5% range........


All bonds come with default risk, whether it is a perpetual bond or a one with a short maturity date.

When the bank is bankrupt, then the bonds will be defaulted. Bond holders will get whatever is left first, followed by the preference share holders.
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Re: Bonds 1 (May 08 - Jul 10)

Postby kennynah » Thu Jul 29, 2010 6:33 pm

The only bond, that doesn't fail...is

007 - Jame Bond
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Re: Bonds 1 (May 08 - Jul 10)

Postby Chinaman » Thu Jul 29, 2010 10:06 pm

kennynah wrote:The only bond, that doesn't fail...is
007 - Jame Bond


haha..Bro K, good 1...
Last edited by Chinaman on Fri Jul 30, 2010 10:33 am, edited 1 time in total.
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Re: Bonds 1 (May 08 - Jul 10)

Postby kennynah » Thu Jul 29, 2010 10:57 pm

The Maybank "perpetual bonds" are not bonds at all because they are perpetual i.e. no maturity so you never get back your principal.


if this is indeed the definition of "perpetual" bonds, then i think it is not a good deal....

but i am not totally convinced that such perpetual bonds can be equated as preference shares; for one, the latter grants voting rights, bond holders get no such rights...

in the event of bankruptcy, any monies salvaged goes to paying the bond holders first, then any leftovers, if any, are paid to preferred shareholders..so, if after repaying all the bondholders, there is nothing left...then...everybody else, suck thumb....LL... let's face it...bond issues are usually very substantive...as you can see, this Maybank Bond issue is 250K per pop.... do you suppose many people buy 250K worth of shares in one company? besides, bond holders get what they lent on face value; means, lend 250K means company owes 250K... shareholder, preferred or otherwise, get the last value of traded...and as we know, a company that goes bankrupt usually means banana stock value...

one more drastic and critical difference is the liquidity of such bonds... will it be tradeable over an exchange? i doubt it... it may be transferable, but i think it will incur additional admin fees and brokering charges...
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Re: Bonds 1 (May 08 - Jul 10)

Postby profittaker » Fri Jul 30, 2010 7:25 am

I guess Malaysian government has no problem buying it. :mrgreen: :mrgreen:
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Re: Bonds 1 (May 08 - Jul 10)

Postby kennynah » Fri Jul 30, 2010 1:52 pm

Maybank is as good as the government...
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