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Genting Perpetual Bonds out for Public

FastFastCar
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2009k

2009k

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I would think Genting is ok.

 

But I can get 7% yield on other counters at rather stable prices...

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FastFastCar

FastFastCar

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  On 4/9/2012 at 8:51 AM, 2009k said:

I would think Genting is ok.

 

But I can get 7% yield on other counters at rather stable prices...

 

You talking about stocks? different asset class ley bro. yield not guaranteed for stocks.

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Old-driver

Old-driver

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  On 4/9/2012 at 8:45 AM, FastFastCar said:

5.125% open to public, who is buying? Good or Not? Damn, all my money suck in FD cannot buy.

thinking very hard... whats' the downside?

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Zanter

Zanter

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  On 4/9/2012 at 8:59 AM, FastFastCar said:

You talking about stocks? different asset class ley bro. yield not guaranteed for stocks.

 

You mean there are guarantees for bond yields? Ever heard of bond price collapsing? Even sovereign bonds can collapse as seen in the euro debacle. Many Companies taking advantage of low rate environment to issue bonds. When the interest rates start to climb, you will see the bond prices start to trend downwards. The rates can only go up from here.

 

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2009k

2009k

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Take the correction and see if you can get good dividend yielding stocks that will pay off the capital over time.

 

Bonds, stocks, properties etc all the same to me. It's always about the point of entry and exit (the latter is optional), the yield is relative to entry...

 

Cheers.

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FastFastCar

FastFastCar

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  On 4/10/2012 at 12:07 AM, Old-driver said:

thinking very hard... whats' the downside?

Downside is they never need to redeem it at par, correct me if i am wrong.

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FastFastCar

FastFastCar

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  On 4/10/2012 at 3:19 AM, Zanter said:

You mean there are guarantees for bond yields? Ever heard of bond price collapsing? Even sovereign bonds can collapse as seen in the euro debacle. Many Companies taking advantage of low rate environment to issue bonds. When the interest rates start to climb, you will see the bond prices start to trend downwards. The rates can only go up from here.

Of course subjected to issuer's risk amongst others, sure enron worldcom soverign bonds can also default, but for govt and quasi govt singapore bonds should be quite safe and you will get back par if you hold to maturity, yes for this genting perputual bond there is no redemption date hence risk is higher.

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Emile12345

Emile12345

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I bought the original $250K bonds and I am regretting it now as it is trading below par. This issue, however, is likely to be oversubscribed since the quantum ($5K) is small.

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FastFastCar

FastFastCar

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  On 4/10/2012 at 3:22 AM, 2009k said:

Take the correction and see if you can get good dividend yielding stocks that will pay off the capital over time.

 

Bonds, stocks, properties etc all the same to me. It's always about the point of entry and exit (the latter is optional), the yield is relative to entry...

 

Cheers.

 

Makes sense but I don't have the time and expertise to study individual stocks.

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2009k

2009k

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  On 4/10/2012 at 3:52 AM, FastFastCar said:

Makes sense but I don't have the time and expertise to study individual stocks.

 

 

Go learn how to value companies and price them etc, and then manage your own money by participating in the market.

 

Until a time when you know what investing is about, do you then participate.

 

Until a time when you have too much money and no time to manage it do you then get others to do it for you.

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Emile12345

Emile12345

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  On 4/9/2012 at 8:45 AM, FastFastCar said:

5.125% open to public, who is buying? Good or Not? Damn, all my money suck in FD cannot buy.

 

I just contacted the book runner. It is now super over-subscribed due to the low quantum of $5K,. Even if you want to buy, you will not get allocated. Even if you get allocated, it will only be a small percentage of your original order.

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Cars08

Cars08

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I cant remember that formula I learned, think it is probably this:

 

PV = A/r

PV of perpetuity

A is amt of periodic payments

r = discount rate

 

Need to know how much it is priced. I/r unlikely to go high up for the next 1-2 yrs...assuming all else constant...given such, a drop in bond price very unlikely. Those minibonds that collasped, if I didnt read wrongly were hybrid and its underlying assets were subprime assets packaged by so call "insurance" to make it attractive or of investment grade... as long as the bond issuer is of good and sound financial standing then it is worth it...at 5.125% not a bad return...

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Taggy

Taggy

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  On 4/10/2012 at 3:46 AM, Emile12345 said:

I bought the original $250K bonds and I am regretting it now as it is trading below par. This issue, however, is likely to be oversubscribed since the quantum ($5K) is small.

 

hi, can teach how to check the current bond price of the original 250k issue? it is not listed in SGX right?

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Jrage

Jrage

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(edited)
  On 4/10/2012 at 3:29 AM, FastFastCar said:

Of course subjected to issuer's risk amongst others, sure enron worldcom soverign bonds can also default, but for govt and quasi govt singapore bonds should be quite safe and you will get back par if you hold to maturity, yes for this genting perputual bond there is no redemption date hence risk is higher.

 

Orh... Perputal does not have a redemption date.. hmm.. that's risky... So you may get back less than you invest if you sell at a "down" mkt.

 

 

  On 4/10/2012 at 3:46 AM, Emile12345 said:

I bought the original $250K bonds and I am regretting it now as it is trading below par. This issue, however, is likely to be oversubscribed since the quantum ($5K) is small.

 

When is your bond maturing? when it mature.. then you can take back in full meh..

*sigh*... my bond also trading below par.. but okay lah.. every half a yr sure get $$..:) Mine redemption date is in 2016.

 

 

To check 250k bond, need to call up your RM, they will check for you thru the treasury.

Edited by Jrage
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