Do take note that the yields I calculate is based on my own way stated here. It basically included all the coupon/dividends payment until the first date of maturity, subtracted from the guaranteed capital loss from buying the bonds/pref shares above par.
1. Genting SP5.125% Perp - 7.8 yrs to maturity (YTM) - 4.47% pa
2. Olam6.75%b180129 US$ - 3.1 YTM - 5.70% pa (USD)
3. LTA n4.17%160510 10k - 1.4 YTM - 1.59% pa
4. CapmallA3.8%b220112 - 7.0 YTM - 3.09% pa
5. SIA 2.15%b150930 - 0.8 YTM - 2.19%pa
1. OCC5.1% NCPS 100 - 3.7 YTM - 3.76% pa
2, CityDev NCCPS - perp
3. DBS Bk 4.7% NCPS 100 - 5.9 YTM - 3.67% pa
4. Hyflux 6% CPS 10 - 3.3 YTM - 4.98% pa
5. OCBC Bk4.2% NCPS - perp
6. OCC 3.93% NCPS 10 - 0.2% YTM - 8.97% pa
I noticed a few things:
1. The price of most pref shares either dropped or stayed the same. The drop is understandable, because the numbers of payments before maturity decreases, hence the price will have to drop so that the yield remained good enough to entice people to buy. But I noticed that the price drops lesser decrease in future payments, meaning that the yield actually drops a little.
In other words, I'll have a better deal buying earlier than later, despite the drop in market price of these bonds/pref shares.
2. OCC 3.93% is selling at par value right now. It'll mature on 20th Mar 2015 (optional), so there's still one more payment left. They pay twice every year, on Mar and Sept so one more payment means 1.965% returns with zero capital loss (since you're buying on par). Only commissions. Since 20th Mar is an optional redemption date, they can choose not to redeem, and therefore pay a 1.85% + 3mSOR quarterly starting on 20th Mar, Jun, Sep and Dec. The 3m SOR is about 0.42% now, expected to rise further, so minimally after 20th Mar (if they choose not to redeem), you can expect to get at least 2.27% pa, split into 4 times a year.
To sum up, it's 1.965% this year. If they redeem, they redeem at par, so net net just lose commission for buying. If they didn't redeem back, at least 2.27% pa every quarter from 20th Mar. But it might be some time before they will redeem back, so the market price might keep dropping, which is still fine as long as you don't sell it. Your capital is just locked up.
Good deal? I leave it to you.
In the end, I decided on 2 holdings for the 20k portfolio. Too little to diversify.
1. Capmalla3.8% b220112 (47.0 % of portfolio)
2. DBS Bk 4.7% NCPS 100 (52.9 % of portfolio)
The earliest maturity date is 5.9 yrs, and the guaranteed capital loss because of buying above par will be $900. My plan for this minibond is as usual, pay 2% pa and build up the cash reserves for that guaranteed loss. Thereafter, pay a higher % pa but always reserve some cash in case the person wants to redeem back and the market price is lower than par. This is no longer a capital guaranteed bond, but I'll still treat it as such. The only difference is that now, I didn't say it's capital guaranteed, haha
A big difference it'll make ;)