tag:blogger.com,1999:blog-37872616.post2908831506990446166..comments2024-03-29T08:44:16.409+08:00Comments on BULLy the BEAR: SIA bonds oversubscribedla papillionhttp://www.blogger.com/profile/01372278083694506953noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-37872616.post-3762119334862420162010-11-14T01:51:19.835+08:002010-11-14T01:51:19.835+08:00Hi anonymous,
Already mentioned in my previous co...Hi anonymous,<br /><br />Already mentioned in my previous comment. <br /><br />Perhaps you should wait a while, let me analyse the things in greater detail first. In the meantime, you can read my latest post on pref shares..might shed some more light on the issue:<br /><br />http://bullythebear.blogspot.com/2010/11/preference-shares-part-iii.htmlla papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-59429738638407222612010-11-14T01:32:25.752+08:002010-11-14T01:32:25.752+08:00Hi LP,
Thanks for the reply, i'm realy confus...Hi LP,<br /><br />Thanks for the reply, i'm realy confuse as OCC 3.93% NCPS 10 is trading at price of 95.2, this is way below par value of 100. Whereas OCC 5.1% NCPS 100 is trading at above its par value of 100.<br />I guess somethings must be missing.<br />Please enlighten me.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-37872616.post-66693410421222212492010-11-13T22:46:12.654+08:002010-11-13T22:46:12.654+08:00Hi anonymous,
You have to do more research on it,...Hi anonymous,<br /><br />You have to do more research on it, namely the following:<br /><br />1. The maturity/callable date - that's the date in which the bond may be recalled at par value of 100<br /><br />2. The dividend policy - some of the pref shares will change their yield at par from the stated yield on its name to 3 mth singapore swap offer rate + 2.5%. So, don't take the yield on the name at face value.<br /><br />I browsed through from different sites and found the following:<br /><br />1. OCC 3.93% callable date is on 2015. It pays 3.93% pa before 2015, but it pays 3 mth swap offer rate + 1.85% thereafter.<br /><br />2. For OCC 5.1%, it has a callable date of 2018. It pays 5.1% pa before 2018 and 3 mth swap offer rate + 2.5% thereafter.<br /><br />http://www.ocbc.com/global/investorrelations/Gco_Inv_PrefShareBond.shtm<br /><br />Since the 5.1% one pays a higher yield for a longer period of time, and if it's not called back after its maturity date, it still pays a higher rate than the 3.93% one, it makes sense for it to be priced higher.<br /><br />Based on the last close, OCC 3.94% gives you a yield of 4.14%, while the OCC 5.1% gives a yield of 4.85%. Seems a better deal? But if you consider the total return, assuming both are called back on maturity, you'll find 3.93% occ to be higher than the 5.1% one.la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-91487568924436437902010-11-13T17:43:39.547+08:002010-11-13T17:43:39.547+08:00Hi LA PAPILION,
Can u please kindly explain to me ...Hi LA PAPILION,<br />Can u please kindly explain to me why OCC 3.93% NCPS 10 is trading at price of 95.2 whereas OCC 5.1% NCPS 100 is trading at price of 105.1. These figures were derived on friday SGX.<br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-37872616.post-19995966184626241652010-10-04T12:29:32.259+08:002010-10-04T12:29:32.259+08:00Hi sanye,
I think for those who compares this aga...Hi sanye,<br /><br />I think for those who compares this against Fixed D, of course it's a much better deal. But that's exclusively for people who have only two places to put their excess cash - fixed D and saving account :)<br /><br />Shall I congratulate on convincing your wife? hahala papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-1814731661333735282010-10-04T11:40:40.546+08:002010-10-04T11:40:40.546+08:00Hi AK71 and LP,
Yes you guys are right, this is i...Hi AK71 and LP,<br /><br />Yes you guys are right, this is indeed not a very good deal, but guess what, I actually encouraged my wife to subscribe it. She is such a risk adverse person that she will not even agree to buy stock like SPH but prefer to let her savings "rot" in some FD account. So I encouraged her to buy SIA bond, and this time she heeded my advice. :)Sanye ◎ 三页https://www.blogger.com/profile/10864265445567780610noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-81498536726199034802010-10-01T21:53:34.976+08:002010-10-01T21:53:34.976+08:00Hi AK,
Yup, indeed not a good deal. As bro8888 me...Hi AK,<br /><br />Yup, indeed not a good deal. As bro8888 mentioned in his latest post, people are concerned about return of capital instead of the returns on their capital. How apt.la papillionhttps://www.blogger.com/profile/01372278083694506953noreply@blogger.comtag:blogger.com,1999:blog-37872616.post-22074884464832562662010-10-01T20:30:27.664+08:002010-10-01T20:30:27.664+08:00This is definitely not a good deal. Don't know...This is definitely not a good deal. Don't know how it could be oversubscribed.AK71https://www.blogger.com/profile/16832145412062954289noreply@blogger.com