Results 1 to 11 of 11

Thread: Borrow Floating rate from Bank: 1m Sibor or 3m Sibor?

  1. #1
    Join Date
    Jul 2013
    Posts
    40

    Default Borrow Floating rate from Bank: 1m Sibor or 3m Sibor?

    Sorry to disturb everyone again. Is it better to take 1 month or 3 month Sibor?

  2. #2
    Join Date
    Apr 2012
    Posts
    1,295

    Default

    My opinion, take 1 mth sibor, refresh every 3 mth.

    Quote Originally Posted by Stockbroker
    Sorry to disturb everyone again. Is it better to take 1 month or 3 month Sibor?

  3. #3
    Join Date
    Apr 2010
    Posts
    2,067

    Default

    Quote Originally Posted by lajia
    My opinion, take 1 mth sibor, refresh every 3 mth.
    Agree with that strategy.

  4. #4
    Join Date
    Apr 2011
    Posts
    1,099

    Default

    Assuming all things equal, 1m is 20*% lower than 3m. So why not..

  5. #5
    Join Date
    Jan 2013
    Posts
    252

    Default

    Quote Originally Posted by newbie11
    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 ?

  6. #6
    Join Date
    Nov 2008
    Posts
    3,812

    Default

    Quote Originally Posted by danguard
    Apologies but I dun understand why 20 percent lower than 3M average SIBOR ?
    Here :

    http://singaporesiborwatch.com/singa...t-sibor-rates/

  7. #7
    Join Date
    May 2013
    Posts
    318

    Default

    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

  8. #8
    Join Date
    Jan 2013
    Posts
    252

    Default

    Quote Originally Posted by k00L
    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

  9. #9
    Join Date
    Jan 2013
    Posts
    252

    Default

    Quote Originally Posted by chestnut
    Thanks bro later I open small window see in office this heh

  10. #10
    Join Date
    Jan 2013
    Posts
    252

    Default

    Quote Originally Posted by chestnut
    Thanks bro later I open small window see in office this heh

  11. #11
    Join Date
    Nov 2012
    Posts
    146

    Default

    ANZ uses SOR. Also has a SOR/Sibor combo package. Anyone using them or has a view on this?

Similar Threads

  1. Sibor rate is dropping!
    By yowetan in forum Finance and Legal
    Replies: 79
    -: 21-07-15, 02:35
  2. Board rate Vs SIBOR
    By litechaser in forum Finance and Legal
    Replies: 11
    -: 09-05-14, 10:27
  3. Bank Loans - 3 mth SIBOR versus 1 month SIBOR
    By ccsee in forum Finance and Legal
    Replies: 9
    -: 08-05-12, 15:21
  4. Sibor Interest Rate
    By royconago in forum Finance and Legal
    Replies: 112
    -: 16-01-12, 14:38
  5. SIBOR or Mortgage Rate
    By ggd in forum Finance and Legal
    Replies: 2
    -: 28-06-08, 19:29

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •