www.hardwarezone.com.sg


www.hardwarezone.com.sg (/)
-   Money Mind (https://forums.hardwarezone.com.sg/money-mind-210/)
-   -   *Official* BBCWatcher club (https://forums.hardwarezone.com.sg/money-mind-210/%2Aofficial%2A-bbcwatcher-club-5855578.html)

edwinttt1978 02-08-2018 10:32 PM

Wow. BBCWatcher has a fan club!

brfish 03-08-2018 04:20 AM

BBCW, what is your view of the new Nikko AM corporate bond ETF? Do you suggest to invest in that in conjunction with SBS, SGS bonds, and A35?

BBCWatcher 03-08-2018 08:27 AM

Quote:

Originally Posted by brfish (Post 115807320)
BBCW, what is your view of the new Nikko AM corporate bond ETF?

I despise its name, because its name is not an accurate description of its holdings.

That problem aside, I view it as a reasonable, lower priority addition to SSBs and CPF, especially for those at least getting near-ish retirement in Singapore.

Shiny Things 03-08-2018 09:06 AM

Quote:

Originally Posted by BBCWatcher (Post 115808252)
I despise its name, because its name is not an accurate description of its holdings.

That problem aside, I view it as a reasonable, lower priority addition to SSBs and CPF, especially for those at least getting near-ish retirement in Singapore.

Do they have a list somewhere of the bonds that are in the index? I saw your thread earlier about the name being really iffy, and I'm curious whether the unrated bonds are good or whether they're Hyflux-grade trash.

BBCWatcher 03-08-2018 09:18 AM

Quote:

Originally Posted by Shiny Things (Post 115808788)
Do they have a list somewhere of the bonds that are in the index?

No, not yet. They argue that they're trying to combat front running as they bring the fund to market, and that makes sense since the bond market in Singapore is quite thin.

....But I don't care. Call it the "Quality Bond Fund" if they're high quality according to some definition they publish. But "investment grade" and "corporate" they ain't. They're going to hold lots of unrated bonds, and they're going to hold lots of government agency bonds. That's b.s.

cheongmanz 03-08-2018 09:32 AM

Quote:

Originally Posted by EagleToThesSky (Post 115800352)
Hi BBCW,

I could not understand why people would want to go for SGS. A good deposit account, like DBS multiplier or UOB one, can give interest higher than 1.8% and that is flexible, meaning you can get the money out the minute you want to do it. And if people have more cash than the limit offered by the bank account, shouldnt they be investing in staff with higher returns, such as stock, as the limit is more than enough for emergency fund?

Am I missing something here? or I am just plain stupid ;)

Thank you

My understanding of DBS multiplier is that you can only enjoy the high interest up to 50k. I doubt there is a cap for SGS except for SSB which is 100k.

bobobob 03-08-2018 09:33 AM

Quote:

Originally Posted by Shiny Things (Post 115808788)
Do they have a list somewhere of the bonds that are in the index? I saw your thread earlier about the name being really iffy, and I'm curious whether the unrated bonds are good or whether they're Hyflux-grade trash.

I posted this in other thread.

Top 10 Issuers:

Housing & Development Board (20.0%)
Temasek Financial (9.4%)
United Overseas Bank (6.2%)
Land Transport Authority (5.0%)
DBS Bank (4.0%)
Singapore Airlines (3.9%)
Huarong Finance (3.0%)
Manulife Financial (3.0%)
CapitaLand (2.5%)
Keppel Corp (2.3%)

Of these 10, the unrated ones are LTA, SQ & Keppel. Added up, the 3 issuer's bonds make up 11.2% of the fund, half of the fund's unrated bonds. Of which there are 22%.

Technically, Capitaland isn't rated either, but many of its subsidiaries are, so I'm not sure where this 2.5% falls.

lifeislonggamma 04-08-2018 10:46 AM

Looking at the SGS Bond N517100F, with a YTM of around 3.48%, does it make sense to use CPF OA funds to buy?

Or would it be better to use SRS funds instead?

I'm new to bonds and would welcome any views.

Thanks. :o

BBCWatcher 04-08-2018 01:59 PM

Quote:

Originally Posted by lifeislonggamma (Post 115826291)
Looking at the SGS Bond N517100F, with a YTM of around 3.48%, does it make sense to use CPF OA funds to buy?

If only N517100F had a yield to maturity that high, but it doesn't. (I'm not sure where you found that data.) According to MAS, the secondary market's yield to maturity for that bond is more like 2.1% (as of August 3, 2018), excluding commission. It matures on April 1, 2022.

Quote:

Or would it be better to use SRS funds instead?
SRS. CPF OA is obviously beating 2.1%.

lifeislonggamma 04-08-2018 02:03 PM

Quote:

Originally Posted by BBCWatcher (Post 115829273)
If only N517100F had a yield to maturity that high, but it doesn't. (I'm not sure where you found that data.) According to MAS, the secondary market's yield to maturity for that bond is more like 2.1% (as of August 3, 2018), excluding commission. It matures on April 1, 2022.


SRS. CPF OA is obviously beating 2.1%.

Oh, then I must have made a mistake.

I used the SGS website's bond calculator and must have keyed in something incorrectly.

Thanks for pointing out the error in YTM!

:o

revhappy 04-08-2018 04:04 PM

Bbcwatcher, since mentioned about Japanese markets couple of times, what is your view about the BoJ propping up Japanese equities? Should a country actively prop up its equity markets?

Sent from Xiaomi REDMI NOTE 4 using GAGT

BBCWatcher 04-08-2018 06:07 PM

Quote:

Originally Posted by revhappy (Post 115830844)
Bbcwatcher, since mentioned about Japanese markets couple of times, what is your view about the BoJ propping up Japanese equities? Should a country actively prop up its equity markets?

Letís consider this policy action in neutral terms, which is that the central bank is buying ownership stakes in publicly traded private companies.

Thatís not unheard of. The British government still owns a big chunk of the Royal Bank of Scotland, for example. If itís done itís usually done when thereís a financial crisis. Japan is in persistent financial crisis. I would probably be in favor of anything that can pull the Japanese economy up and out of negative interest rates. If this policy works, great.

Maeda_Toshiie 05-08-2018 11:51 AM

Quote:

Originally Posted by BBCWatcher (Post 115832310)
Letís consider this policy action in neutral terms, which is that the central bank is buying ownership stakes in publicly traded private companies.

Thatís not unheard of. The British government still owns a big chunk of the Royal Bank of Scotland, for example. If itís done itís usually done when thereís a financial crisis. Japan is in persistent financial crisis. I would probably be in favor of anything that can pull the Japanese economy up and out of negative interest rates. If this policy works, great.

Propping up stock prices isn't going solve structural economic issues. BOJ is not going to save Japan from itself; it will only prop up a country that will continue to sag low and lower. At least Japan will die rich.

Defying_Gravity 05-08-2018 01:38 PM

Hi BBCW and Maple96,

I've looked into the questions you have raised..
With the suggestions I have gathered from the both of u, we went to CPF board on Saturday. I am willing to support her as much as necessarily possible, for she is my mom... So at CPF board, we did the following:

1) I topped up 20k into her RA account.
2) the 4.3k out of the 5k inside her OA was also used to top up her RA account.

Very fortunately, along with the property pledge, she no longer has to worry about the meeting the requirements of fulfilling the FRS. CPF life will be remuneration about s$640/mth and she is comfortable with that (as I will also maintain the s$500/mth).

From here, we will proceed with these 3 steps:
1) As suggested, she is going to liquidate her stock holdings (too risky for her age) and they will return back into her OA and SA account. But she doesn't want to use the funds to top up for she prefers the flexibility of withdrawing the money for the OA/SA..
2) She is going to do a VC to her accounts with whatever she has left at the end of the month.
3) Purchase the NTUC income B+ward as suggested by BBCW

I hope the above 3 steps should suffice for a comfortable retirement...

PS I wish I had been more active too... Sadly, I didn't manage to come across money mind forum until recently. :sad:

BBCWatcher 05-08-2018 07:13 PM

It sounds like your mother is on firmer footing, Defying_Gravity. Just a couple quick comments....

Quote:

Originally Posted by Defying_Gravity (Post 115843272)
3) Purchase the NTUC income B+ward as suggested by BBCW

Thatís NTUC Incomeís Enhanced Income Shield Plan C, plus optional Assist Rider if budget allows. (Donít get the Plus Rider.) To net it out, thatíll mean she can check into KK Hospital B2+ ward, which is air conditioned. Iím assuming she does not have any pre-existing conditions such that the insurer would deny her claim.

Be careful about the Standard Plan, and do take some time this year (2018) to consider whether the Escalating Plan is better. It very well might be since CPF LIFE is going to be her sole source of retirement income, evidently.

When she starts payouts at age 65, the Standard Plan will be essentially flat. (I say ďessentiallyĒ because thereís a slight possibility CPF might have to adjust the payout amount marginally, if life expectancies are better than forecast.) Now imagine sheís age 85, and there has been 20 years of inflation. That monthly payout amount wonít have the purchasing power that it did when she was age 65.

The Escalating Plan fixes this problem pretty well by starting out with a lower amount then escalating at 2%/year for the rest of her life.

Now, if youíre prepared to increase that $500/month that youíre kicking in at about +4%/year, the inflation problem is pretty well solved. But it is important to think in these terms. Sheís trying to protect her real standard of living at a basic level.

Make sense?


All times are GMT +8. The time now is 01:19 AM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Copyright © SPH Magazines Pte Ltd. All rights reserved.