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Lastest S$ Deposit updates - Part 3

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Old 15-09-2018, 11:59 AM   #2266
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yes. agree that age and stage of life is key consideration. i was obssessed with fd rates in the past, not daring to venture beyond it in terms of investment even when i was younger. the whole point of my rant is that for people with lesser than 200k to park, the SSB is the only place to do it (100K each with spouse),...use FD only when waiting for chance to park into SSB..it takes care of liquidity, give good rates and is safe. no fd comes close. for those with more money than that, get yourself accredited and access higher yielding instruments (no stocks, no structured instruments) with not much increase in risk. do not be like me who just chase FD in the past nia. ....lucky something click inside my brain the last 2 weeks and now smarter liao..
Can consider Maxigain which is good. So while those highly rated bonds are good, do take care that bonds are inversely related to interest rates. As interest goes up it might impact bond prices
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Old 15-09-2018, 12:31 PM   #2267
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Can consider Maxigain which is good. So while those highly rated bonds are good, do take care that bonds are inversely related to interest rates. As interest goes up it might impact bond prices
yes. thats a consideration. thats why must get those bonds which either have a fixed maturity date or if they are perps, there is a good chance they will be redeemed either on first call date or there is a reset or step-up to adjust the rates or force redemption. Also when ir rates rise, for new bond issues, the coupons have to go up also. e.g. HDB cant be expecting to issue new bonds at below 3% going forward if ir goes way up.

To me the most key consideration is default risk, not so much interest rate risk. the issuer is the most important thing for me as i am super kiasi.. i worry more about them not paying than the price of bonds dropping.

My goto page for initial bond selection....only company listed there qualify for further analysis.

https://www.temasek.com.sg/en/what-w...portfolio.html
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Old 15-09-2018, 02:09 PM   #2268
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yes. thats a consideration. thats why must get those bonds which either have a fixed maturity date or if they are perps, there is a good chance they will be redeemed either on first call date or there is a reset or step-up to adjust the rates or force redemption. Also when ir rates rise, for new bond issues, the coupons have to go up also. e.g. HDB cant be expecting to issue new bonds at below 3% going forward if ir goes way up.

To me the most key consideration is default risk, not so much interest rate risk. the issuer is the most important thing for me as i am super kiasi.. i worry more about them not paying than the price of bonds dropping.

My goto page for initial bond selection....only company listed there qualify for further analysis.

https://www.temasek.com.sg/en/what-w...portfolio.html
Good that you consider everything.

Interest rate is expected to trend up for the next few years with expected 1 rate hike this yr and 2-3 next yr. This will affect bond prices and when rates goes up, chances of it getting called will also decrease as their cost of borrowing will be higher if the company/Govt called it and borrow from market.

So just need to plan for alternative cash holding, if not you might be hit with drop in bond price when you need cash (eg property investment, emergency etc)
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Old 15-09-2018, 02:51 PM   #2269
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Good that you consider everything.

Interest rate is expected to trend up for the next few years with expected 1 rate hike this yr and 2-3 next yr. This will affect bond prices and when rates goes up, chances of it getting called will also decrease as their cost of borrowing will be higher if the company/Govt called it and borrow from market.

So just need to plan for alternative cash holding, if not you might be hit with drop in bond price when you need cash (eg property investment, emergency etc)
agree. one should not dump everything into just one instrument, it should form part of the overall portfolio. my portfolio used to be overweighted in cash till couple of weeks ago when i kicked myself for overly kiasi...

last time
40% - real estate
60% - cash

my plan:
40% - real estate
20% cash
40% - Bonds
less than 1% in stocks..kiasi...

the interesting thing about SG IR is that it tracks the USD/SGD exchange rate...so there are ups and downs eventhough the general expectation of ir is up. i suspect that is partly the reason why the net effect on retail FD rates is very slow and we in this thread kpkb why retail FD rates move up so slow....worse, some even move down when u thought its going up...e.g. ICBC last month offering 1.85% FD rate for 1 year, this month went down to 1.65%. so IR movement is not so straightforward..and a perpetual bond with low coupon rate may still have a chance to be called.
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Old 15-09-2018, 07:16 PM   #2270
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UOB HY 1.63%pa > SCB 1.6%pa. Any bank saving rate is higher than HY?
UOB HY 1.63% yet RHB Premier Plus is 1.28% only .... any hidden catch?
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Old 16-09-2018, 11:45 AM   #2271
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UOB HY 1.63% yet RHB Premier Plus is 1.28% only .... any hidden catch?
Need to go down to branch to sign a form. Very troublesome.
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Old 16-09-2018, 11:59 AM   #2272
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yes. agree that age and stage of life is key consideration. i was obssessed with fd rates in the past, not daring to venture beyond it in terms of investment even when i was younger. the whole point of my rant is that for people with lesser than 200k to park, the SSB is the only place to do it (100K each with spouse),...use FD only when waiting for chance to park into SSB..it takes care of liquidity, give good rates and is safe. no fd comes close. for those with more money than that, get yourself accredited and access higher yielding instruments (no stocks, no structured instruments) with not much increase in risk. do not be like me who just chase FD in the past nia. ....lucky something click inside my brain the last 2 weeks and now smarter liao..

Hi, can share how to become accredited investor?
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Old 16-09-2018, 12:47 PM   #2273
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Need to go down to branch to sign a form. Very troublesome.
That's easy yo .... but UOB sure got some catches somewhere .... not known to be generous with their offerings. Usually will skip their ads one. Ha ha ....
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Old 16-09-2018, 12:54 PM   #2274
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Bonds the maturity so long .... my investment horizon is not exceeding 3 years. By then, don't know whether still alive or not .... 哈哈。
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Old 16-09-2018, 01:08 PM   #2275
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Hi, can share how to become accredited investor?
just sign the AI form with any financial institution or trading platform. do note u may be required to furnish evidence of assets...

for me...i bought a wholesale bond from Phillip and was given a AI form to sign by the bond desk people.

I also declare as AI with fundsupermart as I want to access their BONDEXPRESS..

https://secure.fundsupermart.com/fsm...ining-fsm-plus
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Old 17-09-2018, 03:47 PM   #2276
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nay, just share good lobangs here before closing date lah
bro. dont say bo jio.

HSBC perp (SGD) closing today

5.125% area...i think will be around 4.85% final.

Last edited by yongsaver; 17-09-2018 at 04:18 PM..
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Old 17-09-2018, 03:57 PM   #2277
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I think those who bought Hyflux bonds issued by DBS Bank now already GG liao .... ha ha .... Govt linked corporation also what .... now how?
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Old 17-09-2018, 04:10 PM   #2278
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Hi, can share how to become accredited investor?
What is the benefits of accredited investor? Open to more opportunities?
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Old 17-09-2018, 04:15 PM   #2279
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What is the benefits of accredited investor? Open to more opportunities?
yep. also more risk.
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Old 17-09-2018, 04:15 PM   #2280
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I think those who bought Hyflux bonds issued by DBS Bank now already GG liao .... ha ha .... Govt linked corporation also what .... now how?
hyflux not govt linked la bro.
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