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21 comments
Dear Lion Investor,
Many thanks for the reply. How would we know if the subscription was sucessful? Would we be sent a letter ot statement?
ReplyKnown quite some time ago; either $$ return to your bank a/c or check cdp online.
ReplyLooks to me this bond issue is very similar to the local banks’ NCPS issues which is currently trading at yield of about 4.6%. Does not really make sense to me why I would take up the bonds issues which pays half the NCPS yield and much less liquid than the NCPS.
ReplyDear Mike,
There are some differences between a bond and preferred shares.
1) Bonds come with fixed maturity date.
2) Dividends of preferred shares are non-guaranteed. The company can choose not to pay a dividend in any one year. If they do not, they must not be paying any dividends to regular shareholders.
ReplyHi, I am new to bonds. if we apply to it through the ATM before the tranche closes but after it is full subscribed, will we get the money back?
ReplyDear Ronald,
If you do not get allocated, they will refund you the money.
ReplyHow good can this be? They are borrowing money from you and give you a low interest. Somemore you cannot recall your loan even if you see them heading towards a cliff otherwise they will penalise you. If their business do well then they pay you a pittance, if it failed you lost your money. What kind of a Kobayashibaru is that?
ReplyBank also borrow money from us and give us 0.125% which is far worse.
You can “recall” your loan by selling your bonds on the SGX like a normal share. Subjected to price fluctuation and transaction cost. The point of bond is fixed steady income just like fixed deposit.
Replyhttp://www.channelnewsasia.com/stories/singaporebusinessnews/view/1103058/1/.html
Coupon/interest to be paid annually.
Will the coupon paid annually or semi-annually? Assuming I invest in SGD 10,000 in 3 year bond, what is the rate of coupon?
ReplyThe coupon may be paid annually. Pse confirmed.
I recalled SIA bonds launched recently was for 5 years (???) and coupon rate same.
Will this bond not pay us interest if the company not doing well like share ?
ReplyIt will continue to pay unless the company defaults on it obligations.
ReplyHi.
I mean how come you have such bond offer in the current market?
The working class is really very pitiful now if they dare not park their “excess” money in equities.
They are taking this “unfortunate almost zero bank interest rate return” time to prey on us the common folks.
Sad.
Hi, I am new to bond, just would like to know whether our prinicipal is protected? Thx Johnny
ReplyDear Johnny,
Principal is protected as long as
1) You do not sell before maturity.
2) The company does not go bust and default.