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Stockbroker
02-07-13, 18:00
Sorry to disturb everyone again. Is it better to take 1 month or 3 month Sibor?
lajia
02-07-13, 18:11
My opinion, take 1 mth sibor, refresh every 3 mth.


Sorry to disturb everyone again. Is it better to take 1 month or 3 month Sibor?
leesg123
02-07-13, 20:57
My opinion, take 1 mth sibor, refresh every 3 mth.
Agree with that strategy.
newbie11
02-07-13, 21:17
Assuming all things equal, 1m is 20*% lower than 3m. So why not..
danguard
02-07-13, 22:20
Assuming all things equal, 1m is 20*% lower than 3m. So why not..

Apologies but I dun understand why 20 percent lower than 3M average SIBOR ?
chestnut
02-07-13, 23:32
Apologies but I dun understand why 20 percent lower than 3M average SIBOR ?

Here :

http://singaporesiborwatch.com/singapore-sibor-data-centre/current-sibor-rates/
k00L
03-07-13, 00:35
Pros is 1mth sibor is usually lower than 3mth sibor

Cons
- 1mth sibor loan get refixed every month, so there is a bit of "volatility" in the interest rates of the loan you are paying, whereas 3mth sibor loan get refixed every 3 month, hence interest rates stay constant for every 3 months.

- there are situations when you pay more in 1mth sibor loan than 3mth sibor loan.
E.g. US Fed wakes up tomorrow and start hiking fed fund rates while market is still thinking this will happen in 2015, then the 1 mth sibor will be going higher every month, whereas the 3mth sibor which get fixed at low rate last month stays constant for next 3 month.

I can live with the cons - so I will go for 1mth sibor loan
danguard
03-07-13, 08:31
Pros is 1mth sibor is usually lower than 3mth sibor

Cons
- 1mth sibor loan get refixed every month, so there is a bit of "volatility" in the interest rates of the loan you are paying, whereas 3mth sibor loan get refixed every 3 month, hence interest rates stay constant for every 3 months.

- there are situations when you pay more in 1mth sibor loan than 3mth sibor loan.
E.g. US Fed wakes up tomorrow and start hiking fed fund rates while market is still thinking this will happen in 2015, then the 1 mth sibor will be going higher every month, whereas the 3mth sibor which get fixed at low rate last month stays constant for next 3 month.

I can live with the cons - so I will go for 1mth sibor loan

Thanks bro for the detailed explanation
danguard
03-07-13, 09:45
Here :

http://singaporesiborwatch.com/singapore-sibor-data-centre/current-sibor-rates/

Thanks bro later I open small window see in office this heh
danguard
03-07-13, 22:27
Here :

http://singaporesiborwatch.com/singapore-sibor-data-centre/current-sibor-rates/

Thanks bro later I open small window see in office this heh
Trigger
03-07-13, 23:42
ANZ uses SOR. Also has a SOR/Sibor combo package. Anyone using them or has a view on this?