SIA Bonds

[Ooniik]

Hi all,

 

Just checking out if anyone is thinking of purchasing the bonds.

Coupon rate of 2.15%. 5 years maturity.

 

Lots of $1000 (smaller denomination)

 

Any takers?

 

Any feedback or discussion is welcomed....

 

http://business.asiaone.com/Business/News/...922-238385.html

[Soho]

I think 2.15% for 5 yrs too little..saw this ntuc income roadshow..5 yr 4.18%...

 

 

[Ooniik]

A little low but better than prevailing deposit interest rates.

We lend money to SIA, hopefully there is Capital appreciation....

[Sky61]

minimum 10k. up to 50million for public offering..increased to 100million if oversub....tink sure oversub. All those aunties and retirees will do so. but its a fairly safe bet,2.15pa for 5yrs and liquidity to sell in SGX if need the $$$..

[Picanto]

this bond is worth it. but it will be oversubscribed XX times.

[Sky61]

bonds are coupon rates...not much appreciation at all..want appreciation buy their shares

[Richardlimbs]

A bit low for bonds... and its un-rated. $10k gives u a paltry 215 bucks and we are stuck with them for 5 years

[Picanto]

  On 9/22/2010 at 3:01 AM, Sky61 said:

bonds are coupon rates...not much appreciation at all..want appreciation buy their shares

 

looks like you are not financially trained afterall.

bonds have less volatility than shares. google for more info before you post ok

[Patwong]

Called DBS /POSB and info as fllws:

Apply thru ATM with min $10K, admin fee $2.

Limited to one account for one application only.

 

Start date: 22/Sept 0900hrs

End date: 28/Sept 1200hrs

Result date: 29/Sept (whether applicant successfully or not)

[Ooniik]

Have a feeling it will be oversubsribed as well.....

[Throttle2]

Yawn.......so whats happening ladies and gentlemen...just woke up , having a sip of my cuba libre and a nice cohiba robusto in a not so sunny swimming pool area. today no need to wipe table, heng

 

try the just launched 8yr mapletree issue at 3.88% coupon , i think can get below 102 still. but really not too exciting even at those yields.

minimum S$250k

 

maybe get the stock at 86cts. dividend yield works out to be about 6-7%

more liquid, easy to let go too.

 

 

Edited September 22, 2010 by Throttle2

[Ltcy]

YTM of 2.15% for this bond doesn't justify the 5-yrs tenor. Folks who wish to diversify some of their cash into low risk bonds can consider the following.

 

CapitaLand 2.95

- Current spot: 94.00 (below par)

- YTM: 3.8%

- Maturity: 2022 with Put date in 2017 @ 100.00

 

CapitaLand 3.125

- Current Spot: 103.50

- YTM: 3.6%

- Maturity: 2018 with Put Date in 2015 @ 106.57

 

Considering investing in the above bonds, on top of the semi-annual coupon payout, you will still be able to make some capital gain if you choose to exercise the put option.

[Ooniik]

  On 9/22/2010 at 4:25 AM, Ltcy said:

YTM of 2.15% for this bond doesn't justify the 5-yrs tenor. Folks who wish to diversify some of their cash into low risk bonds can consider the following.

 

CapitaLand 2.95

- Current spot: 94.00 (below par)

- YTM: 3.8%

- Maturity: 2022 with Put date in 2017 @ 100.00

 

CapitaLand 3.125

- Current Spot: 103.50

- YTM: 3.6%

- Maturity: 2018 with Put Date in 2015 @ 106.57

 

Considering investing in the above bonds, on top of the semi-annual coupon payout, you will still be able to make some capital gain if you choose to exercise the put option.

 

Interesting.... do you know what the minumum amount is??

I'm fairly new in Bonds and not sure really how the put and call option works....

 

Any advise from guru is appreciated.

 

 

 

[Throttle2]

  On 9/22/2010 at 4:25 AM, Ltcy said:

YTM of 2.15% for this bond doesn't justify the 5-yrs tenor. Folks who wish to diversify some of their cash into low risk bonds can consider the following.

 

CapitaLand 2.95

- Current spot: 94.00 (below par)

- YTM: 3.8%

- Maturity: 2022 with Put date in 2017 @ 100.00

 

CapitaLand 3.125

- Current Spot: 103.50

- YTM: 3.6%

- Maturity: 2018 with Put Date in 2015 @ 106.57

 

Considering investing in the above bonds, on top of the semi-annual coupon payout, you will still be able to make some capital gain if you choose to exercise the put option.

 

 

Bro, dont anyhow say.

 

the put option can only be exercised in 2017 and 2015, by then we dont know if there is still capital gains. in fact, 99.99% there will be no capital gains becos the bond will trade closer to put price nearing to put date accordingly.

 

But base on YTP 3++% for a name like Capitaland is ok lah.

 

 

 

*sip sip* ah.....

 

 

 

 

 

 

 

[Ltcy]

  On 9/22/2010 at 4:30 AM, Ooniik said:

Interesting.... do you know what the minumum amount is??

I'm fairly new in Bonds and not sure really how the put and call option works....

 

Any advise from guru is appreciated.

 

The minimum for corp bond is S$250,000.

 

On the stated put date, the bondholders have the rights to redeem the bond at the stated price. The plus point for these two bonds is that they are currently selling below the put price.

 

[Throttle2]

  On 9/22/2010 at 4:30 AM, Ooniik said:

Interesting.... do you know what the minumum amount is??

I'm fairly new in Bonds and not sure really how the put and call option works....

 

Any advise from guru is appreciated.

 

 

be careful , plenty of gurus here.

 

I think this one should be $250k minimum.

 

 

s--t, my ipad kena water from my glass, haha.

technology is amazing, buy tech stocks buy buy

[Ltcy]

  On 9/22/2010 at 4:32 AM, Throttle2 said:

Bro, dont anyhow say.

 

the put option can only be exercised in 2017 and 2015, by then we dont know if there is still capital gains. in fact, 99.99% there will be no capital gains becos the bond will trade closer to put price nearing to put date accordingly.

 

But base on YTP 3++% for a name like Capitaland is ok lah.

 

 

 

*sip sip* ah.....

 

Bro, possible to make capital gain... I have attached two bloomberg screenshots for the bonds' convertible info. According to the convertible info, the 2.95 bond allows the bondholders to exercise the put otions at 100.00 in June 2017, and the 3.125 bond can be exercised at 106.57 in Mar 2015. With their current spot, it's possible for bondholders to make small capital gains.

[Throttle2]

I assess bonds more base on yield to maturity/put which already takes into consideration the put price and the duration.

 

So if you tell me a bond has a ytm or ytp of 3.5%pa, it doesnt matter to me what price it's trading at right now becos the market trades on yields. In other words, on put date if you exercise the put option , your yield will not change becos the so call capital gain/loss is already priced in since you already know the put price and put date.

 

In other words, 2 bonds with the same maturity date can have totally differnt price and coupons but share the same yield to maturity becos they are rated similarly by the market.

 

Therefore ytm is the actual "price" that the market looks at

 

cheers