Bonds investment

[Shion]

Just curious to see if anyone here also invest in bonds too

 

[Obama486]

CMA 3.8%
CMT 3%
Genting 5.125%

but all above par liao.. temping to sell all away

however no alternatives to invest in as SGS pays sooo low

 

[Obama486]

Just curious to see if anyone here also invest in bonds too

which bonds u holding?

 

[Shion]

I am not holding any bonds, just curious to see anyone here holds bonds too since everyone talks about stocks/REITs only

 

[ahlee83]

everybody got different risk appetite
stocks/reits of course more exciting because high risk high return

bond lower risk lower return.

 

[Bedokian]

The bond market here is not as "exciting" as the US ones. The majority of corporate bonds here only sell in minimum tranches of $250K and those which are listed for retailers are at a premium, as mentioned by Obama486. Even the good yield SGS bonds are trading at premium as well. Best to get bonds would be at the IPO stage.

With last year's news of MAS and SGX wanting to release more bonds to retail investors, we may see more offerings and choices in the market soon.

 

[Obama486]

I sometimes will buy SGS too
but now the rates super low

https://secure.sgs.gov.sg/fdanet/SgsBenchmarkIssuePrices.aspx

1 year bonds the yield 0.70% only

I rather put inside fixed deposit 1 year get 1.5%

singapore market kinda sucks, when FD has higher yield than government bonds... zzzzzzzzzzzzzzzzzzzzz

 

[Obama486]

everybody got different risk appetite
stocks/reits of course more exciting because high risk high return

bond lower risk lower return.

bonds also got high risk high returns one
like junk bonds in the US, very high yield but also high risk

 

[wondrdoggie]

I do hold quite a lot of bonds myself, as part of a balanced portfolio. Actually for retail buyers, other than the 3 retail bonds mentioned, you can also buy bonds funds which allows you to participate in international bond markets. SG bond trading is otc so it's opague.

 

[Shion]

Thanks all. I am looking for lower risk investments.

So I suppose bonds is a good choice though low risk =low returns?

 

[wondrdoggie]

Thanks all. I am looking for lower risk investments.

So I suppose bonds is a good choice though low risk =low returns?

Buy investment grade bonds then. There are some bond funds that focuses on on high grade bonds and notes. Return about 2-4%

 

[Shion]

Buy investment grade bonds then. There are some bond funds that focuses on on high grade bonds and notes. Return about 2-4%

Thanks, I will take a look

 

[Obama486]

Buy investment grade bonds then. There are some bond funds that focuses on on high grade bonds and notes. Return about 2-4%

yield kinda low, when u can get like 4-5% on corporate blue chip bonds like bank pref shares or genting 5%

 

[wondrdoggie]

yield kinda low, when u can get like 4-5% on corporate blue chip bonds like bank pref shares or genting 5%

Blue chip doesn't mean investment grade and I don't think genting is even rated. But I could be wrong. Need to check. Anyway, I am quoting the lower end for lower risk. Plus if you buy a fund, you spread out your risk instead on banking on only a few individual bonds. There are higher yield funds, risk just goes up that's all.

Eg. During the muddywater thing, olam bonds dived in value. So if you are caught holding it and you panicked (like yours truly), you lose quite a lot of money.

Caveat - investment grade doesn't mean sure safe. Black swan events can knock out investment grade bonds too. Case in point - Russian banks and more recently the oil prices.

 

[wondrdoggie]

Btw, do check out this equities cum bond fund called Allianz Growth and Income. I have been holding it for about 2 years already. Pays constant 7% yield in cash pa. Quite happy with it so far. I have no interest in promoting this at all, just sharing.

 

[Shion]

Thanks for the info

 

[Milo-Dino]

sigh.. my only bond is being redeemed

 

[pattanispirit]

holding :

Ezra 8.75%
Rickmer 8.45%
Pacific Andes 8.5%
Swiber 9.75%

 

[Obama486]

holding :

Ezra 8.75%
Rickmer 8.45%
Pacific Andes 8.5%
Swiber 9.75%

wah GG man

when u bought it?

if recently ok

if long ago buy then super under water right

 

[Obama486]

Blue chip doesn't mean investment grade and I don't think genting is even rated. But I could be wrong. Need to check. Anyway, I am quoting the lower end for lower risk. Plus if you buy a fund, you spread out your risk instead on banking on only a few individual bonds. There are higher yield funds, risk just goes up that's all.

Eg. During the muddywater thing, olam bonds dived in value. So if you are caught holding it and you panicked (like yours truly), you lose quite a lot of money.

Caveat - investment grade doesn't mean sure safe. Black swan events can knock out investment grade bonds too. Case in point - Russian banks and more recently the oil prices.

ya

if wanna be safe then SGS
or bond etfs

individual corporate bonds more for higher risk appetite people or those with cheap financing

those under private banking can get 2% or less financing to do carry trade