Is it worthwhile to tap into margin facility with 2.88% interest rate on Grade A stocks?

[OngHuatHuat]

Maybank Kim Eng give me certain margin facility, 2.88% per annum on grade A stocks, anybody doing carry trade on this kind of trade facility before?



I think current Interactive brokers financing rate is somewhat close to Maybank Kim Eng.

 

[limster]

yes we know, banks and brokers only lend money to people who have money. So even if you are $3m in debt, your broker is happily willing to lend you another $250k.

 

[OngHuatHuat]

yes we know, banks and brokers only lend money to people who have money. So even if you are $3m in debt, your broker is happily willing to lend you another $250k.

I mean is it worthwhile to make use of this to buy some high yield stocks?


I won't use up the margin facilities for sure, perhaps only half of it.

 

[Shiny Things]

Maybank Kim Eng give me 250 K margin facility, 2.88% per annum on grade A stocks, anybody doing carry trade on this kind of trade facility before?



I think current Interactive brokers financing rate is somewhat close to Maybank Kim Eng.

I mean, you can, but you've gotta be prepared to pony up the cash if the stock you buy goes down. They call them "carry trades" because the people who do them tend to get carried out on a stretcher.

 

[OngHuatHuat]

Think I should start with smaller amount first, but stock market isn’t at low now.

I mean, you can, but you've gotta be prepared to pony up the cash if the stock you buy goes down. They call them "carry trades" because the people who do them tend to get carried out on a stretcher.

 

[BBCWatcher]

You're now looking for more ways to get deeper into debt, yyhwin?

 

[Hot_Dog]

3.88% on 250k is a pretty sweet deal imho.

 

[peterchan75]

The big question is "What is Grade A stocks" ? Sure win stock!
Long ago, one can only invest in CPF approved counters using CPF OA. Less than 20% make more than 2.5%.

If it's a guarantee sure win stock, I will throw in the kitchen sink as well.

 

[tangent314]

You're now looking for more ways to get deeper into debt, yyhwin?

The part I don't understand is the persistent 'humble'-bragging about it on this forum, followed by the persistent whining when things don't go his way (OMG FRS increase means less cash for me to gamble with!), and casual dismissal of products that don't return enough to be leveraged on.

 

[peterchan75]

The part I don't understand is the persistent 'humble'-bragging about it on this forum, followed by the persistent whining when things don't go his way (OMG FRS increase means less cash for me to gamble with!), and casual dismissal of products that don't return enough to be leveraged on.

Because humans cannot master their ego. If they do, the world will be a lot peaceful.

A risk is a chance you take; if it fails you can recover. A gamble is a chance taken; if it fails, recovery is impossible. - Erwin Rommel aka Desert Fox

 

[OngHuatHuat]

The less than 20 % was based on statistics 3 years back. You look at how lousy the market was when it was 3 years back.

Grade A stocks are those stocks on their grade A stocks list.

The big question is "What is Grade A stocks" ? Sure win stock!
Long ago, one can only invest in CPF approved counters using CPF OA. Less than 20% make more than 2.5%.

If it's a guarantee sure win stock, I will throw in the kitchen sink as well.

 

[Belle69]

if you have money,banks will Q up to lend you more

 

[OngHuatHuat]

Huh? 250 k margin facility you call it humble bragging?

A lot of people in this forum can afford to play much larger margin

The part I don't understand is the persistent 'humble'-bragging about it on this forum, followed by the persistent whining when things don't go his way (OMG FRS increase means less cash for me to gamble with!), and casual dismissal of products that don't return enough to be leveraged on.

 

[OngHuatHuat]

Biggest risk is margin call, but can do partial margin to boost return.

I wonder how long does this promotional rate last, 2.88% on margin loan is the lowest I able to find in Singapore market.

if you have money,banks will Q up to lend you more

 

[BBCWatcher]

Grade A stocks are those stocks on their grade A stocks list.

Maybank Kim Eng calls them Grade 1 securities, actually.

 

[limster]

Huh? 250 k margin facility you call it humble bragging?

A lot of people in this forum can afford to play much larger margin

Can you remind me which other people in this forum brag about how much margin they have? I honestly can't recall any, but maybe I don't read these forums as thoroughly as some...

the point is not whether they are given a large margin, but whether or not they brag about it in this forum

 

[OngHuatHuat]

Thread edited to avoid being called humble bragging.

The part I don't understand is the persistent 'humble'-bragging about it on this forum, followed by the persistent whining when things don't go his way (OMG FRS increase means less cash for me to gamble with!), and casual dismissal of products that don't return enough to be leveraged on.

 

[OngHuatHuat]

Frankly speaking 250 k margin isn’t a lot.
I used tO have 800 k to 1 million margin on IB but their interest rate quite volatile. Recently touched 3%.

By the way I edited my thread.

Can you remind me which other people in this forum brag about how much margin they have? I honestly can't recall any, but maybe I don't read these forums as thoroughly as some...

the point is not whether they are given a large margin, but whether or not they brag about it in this forum

 

[OngHuatHuat]

Grade 1 securities are securities that they take 100 % valuation I think.
Grade A is the term for the stocks that qualified for promotional margin rate.

Maybank Kim Eng calls them Grade 1 securities, actually.

 

[Mr.Canberra]

Can you remind me which other people in this forum brag about how much margin they have? I honestly can't recall any, but maybe I don't read these forums as thoroughly as some...

the point is not whether they are given a large margin, but whether or not they brag about it in this forum

Lai lai lai I also want to brag. Currently I have US$720,000 worth of Forex contracts on leverage.

I also can boost to US$1 Million or more if I want to hahaha!