Bought Thailand PTT exploration & production public LTD USD 4.875% perp bond on 6Mar16 @94 (US$188k)
Take profit @99.555 (US$199.1k + accured interest) after holding for 3 mths. Profit est US$13k+.
The Bond Market Is Borrowing Happiness From Tomorrow
Bill Gross mentioned in his interview yesterday that the multi-Trillion of negative rate bonds is a bubble which will explode big one day. Given how these nations are expanding their monetary policies aggressively, we can only assume that the financial system has become even more leveraged than it was in 2007 at the beginning of the last GFC crisis.
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We need to be aware of this gigantic bond mkt bubble. As long you are buying short dated investment grade & min leverage. U should be safe.
If U want to invest in JUNK bond which offfer high yield & long dated. U just need to be aware of the risk once the interest rate starts to go up
and start to de-leverage.
When I buy junk bond & perp which ususally during the mini crisis to get better yield, I will usually sell when there is a profit. Dare not hold for
long term.
"CPF BOND" AAA rating is the best. Risk free & guarantee with HIGH INTEREST RATE (2.5% to 4%). I will continue to voluntary contribute cash to max $37.7k per year from my corporate bond coupon. After age 55, it shall be my EMERGENCY FUND . Will not withdraw so as to earn high interest rate unless it is really very emergency.
Basic RA = $80.5k with ppty pledge (payout age 65 ----- est $618-$682 for basic
Full RA = $161k no ppty pledge (payout age 65 ---- est $1147-$1273 for basic. FYI, by 2020 RA min =est $181k
Enhanced RA =$241k (for those who want higher payout at age 65 ----- $1674-$1863. FYI, by 2020 RA min=est $271k.
We don't bother whether Yellen will be raising rate. We don't bother whether the US will shutdown. We don't bother whether there will be a briexit.
We don't bother because we really DONT KNOW.
But we know that when we patiently wait for the extreme FEAR in the market to come. It is time to pick up some BLUE chip stock/bond.
So let make investing simple.
1. Money is made by sitting, not trading all the time
2. It takes time to make money. Just be very very patience.
3. There is a time for all things, but you & I don't know when.
But we know that when there extreme fear in the mkt. It is the time.
Herd investing is a guarantee for failure.
Will be looking to buy commodities or emerging mkt related bond like BHP perp , Brazil bank majority govt owned , some China developer etc.
Hopefully, the price will drop during this mini crisis.
Brexit win.....Low interest rate forever + more stimulus
It's a good time to consider taking advantage over the next few days to weeks.
Wonderful opportunity.
The three laws of Kelonguni:
Where there is kelong, there is guni.
No kelong no guni.
More kelong = more guni.
I am very curious on the FX USD/SGD movement before the vote on 23rd June..
So I get my RM to price (SG time 23 June 9.33am) for me to observe & LEARN what is the movement b4 (1.33+) & after (now 1.36+).
Hopefully to see any form or manipulation of the FX which the big speculators may already "know" the result even b4 the vote.
I did not execute the trade.
Spot USD/SGD is 1.3365.
Sell SGD call USD put 1.325 (strike price)
One month.
Pay only 0.02% of SGD$250k =S$50.
Usually pays 0.4% to 0.6% .
When my RM told me that Temasek is planning to sell six and 12-year bonds. I was abit "curious" & disturb by the offering.
Our Temasek holding maybe seeing some big "things" happening in the next few yrs which we never not know until it
happen (crisis). That is why I am worry & hestitant to leverage . Investing getting very complex. So many uncertainty.
Those retail investors which trade are likely not to make any profit. FX trading is toxic if u are very emotionally charge & no
experience. U can lose more (eg $100k) than your deposit (eg 10k) due to it highly leveraging (1:100) & sudden gap down . GPB/USD was 1.50
Friday early morning. Suddenly, it drop 1.34+. Almost 10%. I million $ FX trade on a 10% loss is $100K within 12 hrs.
CS predicts stay on by a close margin before the vote. Most of them believe as they saw rally in stock before the vote.
So dont trust any bank or banker. Stay clear most of the bank recommendation especially structure
note & FX. Only trust FEAR.
Win 9 times (small) & lose 1 time (BIG) = LOSE due to GREED & unwilling to CUT LOSS when trade turn bad.
I was with my bankers watching the live of BrExit count. His client called for emergency lines to cover margin call of US$500,000.
I was also told that, UOB moved their clients into £ fixed deposit and guarantee that UK would stay in EU.
Most banks and money changers suspended £ trades for clients this morning.
I am not familiar with bonds...
can experts here share some input...
how are the bond mkts performing Pre and post Brexit ?