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Need advice on which bank to park my assets

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Old 12-09-2018, 08:57 PM   #1
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Need advice on which bank to park my assets

Hi experts,

I have S$1M cash. I also have S$1M in stocks and S$1M in wholesale bonds. If it is relevant, I have a S$2M investment property I will be selling and keeping the sale proceeds as cash. I am waiting for an opportunity to deploy the cash and will not use them for now.

I would like to ask which bank can I park these assets to receive the most benefits, whether tangible or intangible. They may not be significant but I like to feel good. I don't want to pay for any upkeep fees because I am not paying any at my current bank. My present RM is excellent and very responsive but I am wondering if I am missing anything out there because I haven't really done any bank shopping. I have been busy with work and am not proficient with financial matters.

Thank you for any help.
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Old 12-09-2018, 09:20 PM   #2
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I am waiting for an opportunity to deploy the cash and will not use them for now.
Which opportunity (category) will you be waiting for, and do you have an idea how long you'll be waiting? That'll probably affect where and how you'd best park the cash total of S$3 million .
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Old 12-09-2018, 09:27 PM   #3
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Which opportunity (category) will you be waiting for, and do you have an idea how long you'll be waiting? That'll probably affect where and how you'd best park the cash total of S$3 million .
I am waiting for a major stock market crash to the region of 2600. It may be wishful thinking but I believe it will be a 100% profitable opportunity for a long term buy and hold investor. I am not sure how long I need to wait but 3-5 years is not unreasonable for me.
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Old 13-09-2018, 12:28 AM   #4
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Hi experts,

I have S$1M cash. I also have S$1M in stocks and S$1M in wholesale bonds. If it is relevant, I have a S$2M investment property I will be selling and keeping the sale proceeds as cash. I am waiting for an opportunity to deploy the cash and will not use them for now.

I would like to ask which bank can I park these assets to receive the most benefits, whether tangible or intangible. They may not be significant but I like to feel good. I don't want to pay for any upkeep fees because I am not paying any at my current bank. My present RM is excellent and very responsive but I am wondering if I am missing anything out there because I haven't really done any bank shopping. I have been busy with work and am not proficient with financial matters.

Thank you for any help.
Boy oh boy, $3 million SGD in cash?

I mean, I strongly disagree with the idea of parking all that in cash and waiting for a crash that may not come, mostly because piling into the market after a huge crash is hard! Ask anyone who said in 2015-2016 "oh I'll wait for the dip"; the dip came in early 2016 but buying the market when it's plunging goes counter to every instinct that humans have.

But if you're absolutely hellbent on it, a couple of notes:
  1. If you genuinely think the Singaporean market's going to dump a further 20%, those wholesale corporate bonds may not be a great idea. A spew that big is going to spill up the capital structure from equities into corporate bonds, and the bonds won't be worth 100 when you go to sell them.
  2. The right trade for what you're trying to do is not to put it in a bank; the right move is to put the whole lot into 5- to 10-year Singapore government bonds. If the Singaporean economy tanks that badly, interest rates will collapse and govvy bonds will soar in price; you'll be able to sell the bonds for a profit and spend it on stocks. If the economy doesn't tank and it never gets to your 2600 level, at least you'll have picked up a few years of 2.2-2.4% interest. On your amount of cash, that's over $300,000 over five years!
  3. You could express your view more explicitly by parking the cash in govvy bonds and also selling 2600-strike put options on the STI. I don't think this is a great idea though; it removes all your flexibility and the banks will rip you off blind on long-dated options like that.
  4. Don't leave it as cash in the bank. You won't get anywhere near the same yields.
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Last edited by Shiny Things; 13-09-2018 at 12:53 AM..
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Old 13-09-2018, 01:04 AM   #5
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The right trade for what you're trying to do is not to put it in a bank; the right move is to put the whole lot into 5- to 10-year Singapore government bonds.
A35 could serve a useful purpose for this sort of strategy, since it's something that can be easily, conveniently traded at the same broker in Singapore. There is a functioning secondary market for SGSes, but it's a little more lumpy.

Instead of put options, is it possible to short sell ES3?
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Old 13-09-2018, 12:12 PM   #6
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A35 could serve a useful purpose for this sort of strategy, since it's something that can be easily, conveniently traded at the same broker in Singapore.
If he doesn't do a lot of trading, he can build his own bond ladder.

There is a functioning secondary market for SGSes, but it's a little more lumpy.
"little lumpy" is an understatement. The spreads on SGX are oil tanker sized.

Instead of put options, is it possible to short sell ES3?
I'm not sure someone who posts in MM for financial advice should be shorting stocks.
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Old 13-09-2018, 12:55 PM   #7
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Which opportunity (category) will you be waiting for, and do you have an idea how long you'll be waiting? That'll probably affect where and how you'd best park the cash total of S$3 million .
I thought you it's your pattern to say how nice and lovely that he parks it with you since he doesn't really know what else to do.
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Old 13-09-2018, 01:29 PM   #8
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Thank you all.

I understand SG government bonds have a cap of 100K per individual. Besides A35, what are the other avenues where I can buy more of these government bonds?
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Old 13-09-2018, 01:39 PM   #9
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I understand SG government bonds have a cap of 100K per individual. Besides A35, what are the other avenues where I can buy more of these government bonds?

SSBs are capped at 100k.
SGSs are not capped. Buying and selling is quite a bit more troublesome than with SSBs though
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Old 13-09-2018, 01:55 PM   #10
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In a rising interest rate environment, should I be putting all the cash in government bonds now? If I need the money for other opportunities before the tenure is up, I may have to sell below par and negate any interest received. That's why I have been more inclined to keep the cash as they are. Is my logic flawed?
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Old 13-09-2018, 02:26 PM   #11
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I am waiting for a major stock market crash to the region of 2600. It may be wishful thinking but I believe it will be a 100% profitable opportunity for a long term buy and hold investor. I am not sure how long I need to wait but 3-5 years is not unreasonable for me.
u are like prof chan, he will park 1m in the bank and wait for the market crash if he see the opportunity, the rich can do that, as if the market crash, they will make more than what they park in the bank!

there are banks offering 1% for up to 1m, if u already getting more than that, ignore
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Old 13-09-2018, 02:47 PM   #12
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there are banks offering 1% for up to 1m, if u already getting more than that, ignore
I am not getting anything close to 1%. I am also not comfortable putting 1M in Malaysian banks. Which banks are you referring to which offers 1% for the ordinary account?
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Old 13-09-2018, 02:48 PM   #13
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Thank you all.

I understand SG government bonds have a cap of 100K per individual. Besides A35, what are the other avenues where I can buy more of these government bonds?
You can buy every month. Cap is by each purchase.
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Old 13-09-2018, 02:50 PM   #14
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In a rising interest rate environment, should I be putting all the cash in government bonds now? If I need the money for other opportunities before the tenure is up, I may have to sell below par and negate any interest received. That's why I have been more inclined to keep the cash as they are. Is my logic flawed?
You can always pay $2 to cash it out and buy a new one.
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Old 13-09-2018, 02:59 PM   #15
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You can buy every month. Cap is by each purchase.
You cannot buy more than 100k in SSB per person.

There is no limit to how much in SGS bonds you can hold, nor a monthly cap on how much you can buy.
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