Any private banking customers here?

[limster]

He has been PM-ing a while back with questions about bonds and banks. I answered him the best I could. Then recently, he PMed me again with similar questions. I think I don't want to answer anymore. He is just a barrage of questions with no inputs.

Makes you appreciate wahkao3 even more.... even if he trolls, he does so politely rather than some who are rude and aggressive.

 

[neanea]

Makes you appreciate wahkao3 even more.... even if he trolls, he does so politely rather than some who are rude and aggressive.

Limster u again? Very free is it?

 

[wondrdoggie]

Been meaning to ask:

What's the financing like for those typical 100k/250k bonds?
How much % of the notional value do you have to put up as collateral?
How's the financing (ok so everyone has differing rates but if u don't mind, maybe throw out a ballpark figure?) interest rates like? Fixed or floating?

Thanks!

It depends on how you take loans. It can be on an individual product basis or on using your entire AUM as collateral. For the former, say for bonds, you can get up to 80% financing and pay only 20% in cash. The bond is the collateral. The riskier the issue, the less they allow you to borrow against. That's how a lot of people boost their yields.

If you used your entire AUM as collateral, for the same bond, you can borrow 100% though there will be a certain debt ratios overall and per asset class that the bank will limit you to.

Loan rates are derived from 2 parameters - cost of funds and bank spread. For sgd, cost of funds can be Sibor or similar. That is not negotiable. So the only thing you can nego is the bank spread which is essentially what the banks make from you. The higher your aum and activity level, the lower the spreads. I will give a ballpark.

For a 1 mth loan, sgd loans are a total of about 1.5-2%
USD around 0.90 to 1.35%
Euros around 0.65 to 1.2%
If you don't know you can nego, you will pay more. If you know and you know your value to your bank, you can get lower rates.

 

[wahkao3]

Makes you appreciate wahkao3 even more.... even if he trolls, he does so politely rather than some who are rude and aggressive.

 

[crystallic]

Anyone knows the aum required for Scb private banking ? Can't find it on their website.

 

[sebastgt]

Anyone knows the aum required for Scb private banking ? Can't find it on their website.

US $2 million.
I just googled, not sure if it is the most up to date.

 

[SpeedingBullet]

It depends on how you take loans. It can be on an individual product basis or on using your entire AUM as collateral. For the former, say for bonds, you can get up to 80% financing and pay only 20% in cash. The bond is the collateral. The riskier the issue, the less they allow you to borrow against. That's how a lot of people boost their yields.

If you used your entire AUM as collateral, for the same bond, you can borrow 100% though there will be a certain debt ratios overall and per asset class that the bank will limit you to.

Loan rates are derived from 2 parameters - cost of funds and bank spread. For sgd, cost of funds can be Sibor or similar. That is not negotiable. So the only thing you can nego is the bank spread which is essentially what the banks make from you. The higher your aum and activity level, the lower the spreads. I will give a ballpark.

For a 1 mth loan, sgd loans are a total of about 1.5-2%
USD around 0.90 to 1.35%
Euros around 0.65 to 1.2%
If you don't know you can nego, you will pay more. If you know and you know your value to your bank, you can get lower rates.

Brilliant, thanks!!

 

[crossfitter]

Does anyone have any experience dealing with Malaysia private banks like Cimb or maybank? I have a sum of ringgit that I don't plan to convert due to bad exchange rate and am interested to keep it in Malaysia for the time being . Or any local pbs that would allow me to open an account here but hold the funds in Malaysia.

 

[wondrdoggie]

Does anyone have any experience dealing with Malaysia private banks like Cimb or maybank? I have a sum of ringgit that I don't plan to convert due to bad exchange rate and am interested to keep it in Malaysia for the time being . Or any local pbs that would allow me to open an account here but hold the funds in Malaysia.

Is your intention to keep ringgit or keep ringgit in MY? You can easily keep your ringgits here in SG and when needed, transfer them back to your MY accounts.

 

[crossfitter]

Is your intention to keep ringgit or keep ringgit in MY? You can easily keep your ringgits here in SG and when needed, transfer them back to your MY accounts.

Correct me if I am wrong but you are not allowed to keep ringgit account in Singapore right?

 

[linxiaobei]

Correct me if I am wrong but you are not allowed to keep ringgit account in Singapore right?

Multi currency accounts.....?

Sent from Sun using GAGT

 

[crossfitter]

ringgit is a controlled ccy. you are not allowed to hold a ringgit account outside of Malaysia.

 

[wondrdoggie]

ringgit is a controlled ccy. you are not allowed to hold a ringgit account outside of Malaysia.

I didn't realize that... Thought it's the same as other currencies. Thanks for the information!

 

[neanea]

Is there any promotion going on for new private banking customers?

 

[frenchbriefs]

this is my private banking experience.

8min 47 onwards.

 

[Asphodeli]

This should be in the main Money Mind forum...

Sent from Sony D5833 using GAGT

 

[Perisher]

Thread Moved.

 

[henrylbh]

Thread Moved.

Moved where? Recycled bin?

 

[neanea]

Is there any promotion going on for new private banking customers?

 

[firsttimebuyer]

Just curious, for local banks, how do they actually verify the sources of the funds? I mean, if some guy, even an existing customer, just calls up the bank or emails the bank for an appointment to say he is depositing $1 mil - $5 mil becoz his company is doing very well, surely that raised eyebrows?