how do u buy these stuff ?Originally Posted by cbsh38584
how do u buy these stuff ?Originally Posted by cbsh38584
Hi vic,Originally Posted by cbsh38584
you said you bought the DBS preferential bond in 2010, then sold in 2011.
Usually what is the tenure of the bond?
If you redeem it earlier how much will be forfeited?
These are Preference Shares not real bonds...some bond-like attributes but not real bonds. Riskier than bonds in that they rank below bonds but above shares.
I bought DBS pref bond @ 100. Sell @101.Originally Posted by buttercarp
OUE 4.95% 7 yrs @ 100. price now 102+
Lippomall 5.875% 5 yrs @ 100. Bond price now 105+
Check with your banker to study into bond investment.
A more simple bond investment is unit trust.
rdgs,
Vic
Thanks vic .Originally Posted by cbsh38584
You got me interested.
However, it is all greek to me at the moment.
I have unit trust tagged together with my life insurance but don't understand how it really works.
Now that I am interested, I will do research to understand better.
Bro, for universal life, please make sure the insurer is super solid. In event of insolvency of the insurer, the guarantee amount is a few hundred thousand. I cannot remember the amount. U can check w your insurer. So if u take 5 mil, it is better to spread it out. There is another way to do universal life at lower premium but do tedious to explain. It is like leverage and upon death, the outstanding 'loan' is deducted from the total payout.
Originally Posted by cbsh38584
You are doing all these just for the $25,000?Originally Posted by cbsh38584
With borrowed money, and unhedged I suppose.
This thread getting more interesting. Universal Life also mentioned.
Bro, be careful of universal. The insurer must be super strong. If they go bust, Singapore only guarantee only a certain amount. Really cannot remember the amount but super small. So if u want to get big amount, better spread. Same to deposits in bank.Originally Posted by kane
Everybody is hungry of Yield and discounting risk
Ride at your own risk !!!
Fully agreed, especially in the high yield bond areaOriginally Posted by phantom_opera
posted the write up on massage in here
http://forums.condosingapore.com/sho...t=15395&page=5
Sorry I can't believe ppl are so happy buying universal life. The ONLY purpose of universal life is to avoid estate duty / inheritance tax. Since SG had abolished estate duty, the whole purpose of universal life is moot.
@cbsh, I'm surprised you buy/sell bond like shares. Corp bond bid offer spread is not small, plus bank takes a 50bps cut. Buy sell within 1yr dun gain you much. Bond is meant to be held to maturity. Unless you need the cash. Retail bonds, those can buy at thousands, usually have lowere yield. Companies are taking advantages of the retail public since they cannot do 250k. Bond fund is even worse. Exactly because retail investors cannot do big size, they get you to invest in their fund to buy bond, and pay them fee for doing something very simple.
Hi VicOriginally Posted by cbsh38584
is that all u have done in bonds?
I think u can learn more from Focus, he has better picks than u.
HSBC , std chart & credit sui offer this universal life plan. So it is safe.Originally Posted by chestnut
rdgs,
Vic
Some specific Qs to ask experts here.
Does Bond value go below 100? Does this happen only when bank interest rates rise? Can issurer reduce the projected yield?
Will there be buyers everything you wish to sell?
When Bond value rises beyond 103, is it still worth getting into?
Originally Posted by Laguna
I have ABN , Banyan Tree , OUE , Lippomall , Shui On , Noble,Olam, Petra Food ,Hutchison, Cheung kong, Citi pacific etc etc. LTV ave 58%.
Coupon est 180k to 200k/yr after deducting loan interest rate & custodian fee. 80% are straight bond. The rest are perp bond.
Bank takes 0.2bps. Need to monitor closely the sign of raising rate. Will likely to sell some early 2014.
Originally Posted by cbsh38584
They offering thru an insurer. They are not the insurer. If u have already taken, ok. If you have not and going to take, I suggest u take term but if u really want to take, spread it out. Find out if the insurer goes kaput, what is the max payout. I don't think any of the local insurance coy does universal.
Those who bought universal life related product few years ago in US$ would have their values devalue with the drop in US$ -SGD exchange rate. What if one day 1US$ = 1SGD?Originally Posted by cbsh38584
haha, after I said, Focus is better, then u show your true colour....with etc etc...Originally Posted by cbsh38584
your coupon is in the range of 5%, net give u 3.7%, income say $200,000, so total gross bond value is $5m, LTV 58%, so your cash portion is around $2m...
well done
dbs, ubs, hsbc also offer lehman bond in the past...all kaputOriginally Posted by cbsh38584
Originally Posted by DC33_2008
I dont buy the universal life plan. I said that the Smart & rich clients are borrowing in USD & invest in USD global bond fund giving 5% dividend. The dividend payout will be used to pay their yearly premium. USD $ down would effect them alot as their money are borrowed in USD.
rdgs,
Vic
I used less than 1.6m cash.I borrowed >1.6M. My coupon is in the range of 7%. If I use the cash 1.6m to buy property, how to get 180k to 200k/yr return. I need to make full used of low interest for the next 2-3 yrs (2010 to 2014) to make as much as possible. Will monitor very closely the sign of raising rate. Will probably sell some in 2014.Originally Posted by Laguna
I told many of my friends in early 2011 that there are money to be make in bond due to the QE. When I told them they need to leverage it to get a better return. They dare not. Seem to risky to borrow.
haha Laguna so where is ur massage parlor? urgently need a good 1!Originally Posted by buttercarp
when u have bond, ur looking for fixed income or yield and perhaps some capital appreciation. U buy straight bond, so the capital appreciation is not that substantial.Originally Posted by cbsh38584
When in property, ur talking not about rental/yield, but on capital appreciation especially on a cash on cash return. Of course, now with lower LTV, the cash on cash return is getting lesser.
I got a friend, bot in early 2011, now the capital appreciation is 60%, u cannot get this sort of capital return in bonds.
here it goesOriginally Posted by price
http://forums.condosingapore.com/sho...t=15395&page=5
post 49
If u want a good relaxing one, I have another one to suggest, at Roxy Square
After reading through the posts, i was gonna ask for a direct comparison between bonds and properties since we're still in a Condo Forum.Originally Posted by Laguna
another point to add to yours,
Preference shares / bonds can collapse and become 0 in value.
It is very rare that a property can become $0 as long as you have the holding power. Unless a bomb drops?
$200,000 net on a cash capital of $1.6m, ie 12.5% net. A fair return for using leverage but definitely not the top nod.Originally Posted by cbsh38584
The findings I uncovered in my participation in this forum is :Originally Posted by Laguna
1. Many do not know their objective, so don't know what to invest.
2. Many do not set objectives because they did not go into 1 as above.
3. Many expect whatever said in the forum to be true and don't do their own due diligence.
4. Many want to be spoon fed.
5. Many do contradict but don't provide evidence.
6. Many just tell u, wheni ask for proof, they tell u, go find yourself. If we can find ourselves, we would not be contradicting u in the first place. It could be a case, we don't know where to find.
What I also found is,
There are many genuine people here who really want to help and for that, I am appreciative.
So Bottomline, I do enjoy this forum.
一种米养百种人Originally Posted by chestnut
just enjoy lor! I do as well...
now eye big big looking at GS
BTW, I also dunno how much I said is true and how much is false as well...
Last edited by Laguna; 24-10-12 at 23:17.