Singapore SGS Bond

[reddevil0728]

Hi can I know for SGS Bond (New) you will be taking the approach not to redeem correct? Hold to maturity correct? SGS Bond selling seem to be a stumbling block for me at least. Just want to hear from other readers when they decide to go into SGS Bond (New)

SGS bond is more like sell.

actually SGS bond might be worth more than face value if interest rates drop.

because now the bond coupon rate becomes more valuable.

 

[sohguanh]

SGS bond is more like sell.

actually SGS bond might be worth more than face value if interest rates drop.

because now the bond coupon rate becomes more valuable.

The problem is the process of selling SGS bond. So far I have yet to read any readers contributing in this thread how is it being done and how easy it is to be. Without reader real life experience, it make one afraid to step into SGS Bond (New). Unless one buy is to hold to maturity then this concern can be removed.

 

[reddevil0728]

The problem is the process of selling SGS bond. So far I have yet to read any readers contributing in this thread how is it being done and how easy it is to be. Without reader real life experience, it make one afraid to step into SGS Bond (New). Unless one buy is to hold to maturity then this concern can be removed.

you can check out the astrea thread. it should be similar.

 

[a4973]

SGS bond is more like sell.

actually SGS bond might be worth more than face value if interest rates drop.

because now the bond coupon rate becomes more valuable.

So you mean that in interest rate drop situations SGS Bonds might be worth more and therefore worth the effort to sell at that point in time and not hold till maturity? But how would one know if the price has gone up? Thanks

 

[vsvs24]

you can check out the astrea thread. it should be similar.

I doubt SGS is the same as Astrea. Astrea is retail bond traded on SGX. There is IPO unlike SGS. Sell through brokers like DBS Vickers and UOB Kay Hian just like equities. FSMone cannot though.

 

[reddevil0728]

So you mean that in interest rate drop situations SGS Bonds might be worth more and therefore worth the effort to sell at that point in time and not hold till maturity? But how would one know if the price has gone up? Thanks

yea.

because bonds that pays a higher coupon rate will be worth more than a bond that pays a lower coupon rate all else equals.

https://www.investopedia.com/ask/answers/why-interest-rates-have-inverse-relationship-bond-prices/
I wouldn't say it is worth to sell to sell or not but just that price should be higher than face value. u can probably check out bonds issued prior to covid, after feds cut the rate, the price did go up.

whether the effective yield (aka price u sold at + coupon received thus far) is going to be better than coupon rate it depends.

even if u sell a bond at below face value (assuming u got it at launch), u might actually not make a loss overall when factoring in coupon received thus far. it is just that your effective yield might just be lower than coupon rate.

how would you know if price gone up, look at the platform where you are able to sell your bond lor.

 

[reddevil0728]

I doubt SGS is the same as Astrea. Astrea is retail bond traded on SGX. There is IPO unlike SGS. Sell through brokers like DBS Vickers and UOB Kay Hian just like equities. FSMone cannot though.

oh i thought SGS bond also ca be sold through SGX since can see them on SGX website

https://www.sgx.com/fixed-income/products/R1NS

 

[sohguanh]

I doubt SGS is the same as Astrea. Astrea is retail bond traded on SGX. There is IPO unlike SGS. Sell through brokers like DBS Vickers and UOB Kay Hian just like equities. FSMone cannot though.

https://www.sgx.com/fixed-income/retail-fixed-income-securities?code=sgsbonds
I think it is traded like a "stock" in SGX. The key is you take a look the Ask Volume and Bid volume. This is terrible.

 

[a4973]

yea.

because bonds that pays a higher coupon rate will be worth more than a bond that pays a lower coupon rate all else equals.

https://www.investopedia.com/ask/answers/why-interest-rates-have-inverse-relationship-bond-prices/
I wouldn't say it is worth to sell to sell or not but just that price should be higher than face value. u can probably check out bonds issued prior to covid, after feds cut the rate, the price did go up.

whether the effective yield (aka price u sold at + coupon received thus far) is going to be better than coupon rate it depends.

even if u sell a bond at below face value (assuming u got it at launch), u might actually not make a loss overall when factoring in coupon received thus far. it is just that your effective yield might just be lower than coupon rate.

how would you know if price gone up, look at the platform where you are able to sell your bond lor.

Thanks for your detailed explanation. Just to dumb it down for my understanding. Eg I bought 50k of the coming 10 years bond. Say I then received 4 coupons ie 2 years have passed then I sell the bonds at 50k so I didn't make a loss in fact I made a gain because I received 4 coupons but I have lost out on the next 8 years of coupons thus my effective yield of 50k is only 2 years of coupons instead of the full 10 years of coupons? Thanks.

 

[sohguanh]

Any readers who have taken this approach and manage to sell the SGS Bond in FSM platform? Transfer from CDP to FSM. Then use FSM platform to sell the SGS Bond. The selling process is "confirmed can sell" got buyers?

 

[reddevil0728]

Thanks for your detailed explanation. Just to dumb it down for my understanding. Eg I bought 50k of the coming 10 years bond. Say I then received 4 coupons ie 2 years have passed then I sell the bonds at 50k so I didn't make a loss in fact I made a gain because I received 4 coupons but I have lost out on the next 8 years of coupons thus my effective yield of 50k is only 2 years of coupons instead of the full 10 years of coupons? Thanks.

actually your effective yield would be would just be the coupon rate...

 

[jljh888]

I need help..

I bought SGS Bonds - nx22100w, instead of the SSB which I wanted to buy..

What are the ways I could off load the SGS bonds..

 

[maumu]

I need help..

I bought SGS Bonds - nx22100w, instead of the SSB which I wanted to buy..

What are the ways I could off load the SGS bonds..

you may want to call the bank like now.. to try to appeal to reverse the order. I think banks will only submit tomorrow morning so there might be a chance.

otherwise, got to offload via secondary market via using FSM.

 

[lzydata]

I need help..

I bought SGS Bonds - nx22100w, instead of the SSB which I wanted to buy..

What are the ways I could off load the SGS bonds..

https://www.mas.gov.sg/bonds-and-bi...ties/Buy-and-Sell-SGS-on-the-Secondary-Market

 

[jljh888]

you may want to call the bank like now.. to try to appeal to reverse the order. I think banks will only submit tomorrow morning so there might be a chance.

otherwise, got to offload via secondary market via using FSM.

I called the bank already, nothing they can do.

 

[lzydata]

I called the bank already, nothing they can do.

Hope you did not apply for a lot. The secondary market for SGS bonds is illiquid so your best chance would be on the first day after it is issued.

 

[jljh888]

FSM is fundsupermart right ?

 

[a4973]

I need help..

I bought SGS Bonds - nx22100w, instead of the SSB which I wanted to buy..

What are the ways I could off load the SGS bonds..

@sohguanh , thought you might be interested to follow this new development.

 

[vsvs24]

I called the bank already, nothing they can do.

Don't panic yet. Wait till tomorrow for the yield. Unless you need the money within 10 yrs, hopefully turn out to be a blessing.

 

[jljh888]

Don't panic yet. Wait till tomorrow for the yield. Unless you need the money within 10 yrs, hopefully turn out to be a blessing.

Yup. If the yield turn out to be good, I am ok to hold..