ikilledbarbie
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As above. Good? Is it tough to get a successful bid? Thanks ~
The returns are very low, some people say put the money into FD is better
Yeah I was looking at the rates too and fds now are even better. Who will buy sgs then? Corps?
Yeah I was looking at the rates too and fds now are even better. Who will buy sgs then? Corps?
Would buying the Nikko AM Bond Fund Index (A35) be considered a similar investment to buying bonds? Thus diversifying your portfolio? (Assuming fully equities atm)
Mechanically it is (inasmuch as you can buy it like a stock), but from the point of view of your portfolio it's equivalent to bonds.Had some comments that it's more like buying stocks rather then bonds
Yep. A35 is exactly like owning bonds (it's a fund that owns a bunch of bonds, and what you care about is what's inside the fund, not the fund itself).
Mechanically it is (inasmuch as you can buy it like a stock), but from the point of view of your portfolio it's equivalent to bonds.
Thank you shiny
basically buying the a35 bond fund would be like buying a rolling bond ladder with the same duration? however a bond fund would be easier for smaller retail investors due to lesser capital to diversify AND less hassle of shopping for new bonds upon each bond of the bond ladder expiring? just that there is expense ratio for the A35?
basically buying the a35 bond fund would be like buying a rolling bond ladder with the same duration? however a bond fund would be easier for smaller retail investors due to lesser capital to diversify AND less hassle of shopping for new bonds upon each bond of the bond ladder expiring? just that there is expense ratio for the A35?
(And its really a hassle to go and monitor the bidding dates, go and the ATM and signup for it, check up the yield of the bonds if its a reopen issue etc.)
with regards to the bond fund A35: Yes. There is only a bit of expense ratio and its much better for small retail investors to buy a diversify portfolio of bonds in just a click of a button.
Yep, exactly right.
Mainly as a portfolio diversifier w less correlation to stocks yup? Since there's no maturity date.
yup and I guess its indifferent between a zero coupon bond and a bond which pays coupon but i prefer the latter. Then again, i rarely see a zero coupon bond.Also read that zero coupon bonds are more suitable for known commitments with a known cost/date (no coupons to reinvest, which might not be possible with small total amounts invested).
Are SGS T-bills the only zero coupon bonds in sg? However they are only sold in 1 year tenors and aren't traded on sgx (unlike sgs bonds). So I guess we would be back to TS's question?
Yup, assets class diversification is the way to go. Also, i don't think i understand you, the bonds in a bond fund have maturity dates. Unless you were referring to something else.
yup and I guess its indifferent between a zero coupon bond and a bond which pays coupon but i prefer the latter. Then again, i rarely see a zero coupon bond.
yes and actually i think the bank fix deposit or even some cash deposit account have a higher yield than our T-bill at the moment. someone mention about this too in this thread.
i found this while i was reading the link you provided. pretty informative. =)
https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_fund
Any reason why a35 is quoted in 3 decimal places? other stocks tend to be in 2 decimal places. lack of volatility?
from what i understand, im sure that a35 is an etf. however the name bond index fund confuses me, as that would imply a mutual fund that is tracking an index.
Yeah, because there's not a lot of active trading in this one, the price is just what the market-maker puts up. That shouldn't discourage you from posting a bid or offer inside the spread, though; you never know!was watching a35 today. the volume seems pretty bad. 7000 shares exchanged hands in one day (2march2015)
i assume this is the reason for the larger than normal big ask spread of bid 1.146, ask 1.154.