Singapore Treasury bills (T-bills)

[gregory_choo]

even at this rate, the demand is still high.

 

[60Remajust]

reits still giving more than 5%

probably more once rate cuts improve their margins and distributions

 

[~sabaisabai~]

reits still giving more than 5%
probably more once rate cuts improve their margins and distributions

yes but they are different instrument

equity comes with risk
tbill no risk

not everyone has the appetite for risk

 

[reddevil0728]

even at this rate, the demand is still high.

There will almost always be over-subscription, so nothing surprising even if the rate is very low

 

[60Remajust]

yes but they are different instrument

equity comes with risk
tbill no risk

not everyone has the appetite for risk

this is a standard answer and many will agree with u due to a shallow understanding of risks

there is something called reinvestment risk which exists for tbill every 6 mth

eventually what will happen once yield starved investors have no where to go when tbill/deposit/fixed D rates drop towards 1-2% ?

they end up w the real risks of loading up on equities when prices are high, reit ETF CLR CFA > $1

then when prices drop they kpkb and then start telling everyone, their family and children that stocks are very risky and the vicious cycle continues

 

[reddevil0728]

this is a standard answer and many will agree with u due to a shallow understanding of risks

there is something called reinvestment risk which exists for tbill every 6 mth

eventually what will happen once yield starved investors have no where to go when tbill/deposit/fixed D rates drop towards 1-2% ?

they end up w the real risks of loading up on equities when prices are high, reit ETF CLR CFA > $1

then when prices drop they kpkb and then start telling everyone, their family and children that stocks are very risky and the vicious cycle continues

Eh not a like for like comparison. Want to compare risk also need to compare like for like ma.

 

[gregory_choo]

There will almost always be over-subscription, so nothing surprising even if the rate is very low

must have over subscription, else everyone will get 60% yield if one crazy guy bid at 60%.

same for coe, can get $1 if underscribed.

I am talking about bid to cover ratio, it is surprisingly high, given the 'low' yield.

 

[~sabaisabai~]

this is a standard answer and many will agree with u due to a shallow understanding of risks
there is something called reinvestment risk which exists for tbill every 6 mth
eventually what will happen once yield starved investors have no where to go when tbill/deposit/fixed D rates drop towards 1-2% ?
they end up w the real risks of loading up on equities when prices are high, reit ETF CLR CFA > $1
then when prices drop they kpkb and then start telling everyone, their family and children that stocks are very risky and the vicious cycle continues

lol. I know your theory. I'm vested in equities but look, not everyone are into equities investment. investment required knowledge and not everyone is keen. who dunno will lose to inflation? theologically equities certainly better as yield higher. but again it boils down to different ppl different risk right? can't expect all the same as you

ppl kpkb is human nature. they just want to rant it out lo. let them be. no need to be so huan lo. their money their call right?

 

[60Remajust]

lol. I know your theory. I'm vested in equities but look, not everyone are into equities investment. investment required knowledge and not everyone is keen. who dunno will lose to inflation? theologically equities certainly better as yield higher. but again it boils down to different ppl different risk right? can't expect all the same as you

ppl kpkb is human nature. they just want to rant it out lo. let them be. no need to be so huan lo. their money their call right?

Agreed, think its the knowledge or at least to bother learning about it

anyway I also benefitted from tbills and enjoyed it while it lasted

 

[reddevil0728]

must have over subscription, else everyone will get 60% yield if one crazy guy bid at 60%.

same for coe, can get $1 if underscribed.

I am talking about bid to cover ratio, it is surprisingly high, given the 'low' yield.

https://www.mas.gov.sg/bonds-and-bi...ill?issue_code=BS21101T&issue_date=2021-01-26

Jan 2021… COY of 0.3%
Bid to cover of 2.78

vs the latest 2.97% 2.05

on that basis it’s surprisingly low in fact?

 

[reddevil0728]

Agreed, think its the knowledge or at least to bother learning about it

anyway I also benefitted from tbills and enjoyed it while it lasted

People can think logically yet they just don’t have the guts to do it

Not so clear cut one la

 

[maumu]

Why need to do that

to clock the 'income' category to hit the max amount for 4.1%

 

[reddevil0728]

to clock the 'income' category to hit the max amount for 4.1%

Are you aware of the alternate way?

 

[maumu]

Are you aware of the alternate way?

the buy-and-sell UT way that you shared about?

just not my preference to pay those broker commissions.. especially if it's in the 30k range each month.

 

[reddevil0728]

the buy-and-sell UT way that you shared about?

just not my preference to pay those broker commissions.. especially if it's in the 30k range each month.

Nope. Essentially cost neutral.

 

[lzydata]

Madam Goh and Mr Liew always lodge non-competitive bids.

Madam Goh said she is content to earn some extra interest above the savings account rate of 0.05 per cent.

Mr Liew is not worried that the yield he gets is too low, as he believes the opportunity cost of missing out on a T-bill issue is greater.

For housewife Madam Goh not to know about competitive bids is one thing, but "portfolio manager Daryl Liew" should do better than that!

 

[dork32]

For housewife Madam Goh not to know about competitive bids is one thing, but "portfolio manager Daryl Liew" should do better than that!

anyone that can count to 100 and know the 26 alphabet can be a portfolio manager

 

[dork32]

just wondering how many people nc on their cpf this round

 

[GrandJedi]

When BY23103V 1-Year T-bill matures on 22 Oct what is the minimum percentage I can roll into for breakeven? Assume using CPF-OA?

 

[maumu]

When BY23103V 1-Year T-bill matures on 22 Oct what is the minimum percentage I can roll into for breakeven? Assume using CPF-OA?

have you tried reading or searching about the breakeven? it's been talked about many times... can't recall the exact values.

regardless I doubt it's worth using CPF-OA anymore for the coming issues with the downward trend of the rates. most likely below 3%... no eye see..

I'm also rolling over but using SRS. still decent (since SRS only getting 0.05%).