Hyflux 6% Perpetual Securities

Titus3

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They are no obliged to redeem the security. But if not redeemed by end Apr the interest will step up to 8%. If they fail to pay interest, the interest due will accumulate as a debt due to holders until paid.

Means no point to sell at loss unless people think they are going to “close shop”?
 

Asphodeli

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wow wiped out nearly half...lots of married deals though...something's up
 

arctician

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wow preference shares and bonds are supposed to be risk free investments, surprised this went all way down..
 

xitrumch

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wow preference shares and bonds are supposed to be risk free investments, surprised this went all way down..

ya, it is less risky when compared to equity, but still have to look at the company credential to assess the risk level...
 

rstopel

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Market thinks ah Lum cannot sell asset at close to book value. No asset sale, no bond redemption. Co got no cash flow from operations
 

arctician

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Market thinks ah Lum cannot sell asset at close to book value. No asset sale, no bond redemption. Co got no cash flow from operations

got source? i am surprised the share price remain stable..usually if no coupon payout to perps, ordinary sharholder no dividend also
 

rstopel

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got source? i am surprised the share price remain stable..usually if no coupon payout to perps, ordinary sharholder no dividend also

Stable?


YEczxJ1.jpg
 

MikeDirnt78

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wow preference shares and bonds are supposed to be risk free investments, surprised this went all way down..

I think you really got it wrong. They carry some risks.

The Noble and Swiber bonds serve good examples. The companies financial standings are important and their declines were slow. So ample time for bondholders to react.
 

Sai777

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This is probably one of worst I had in recent years. Really CMI
 

hindsight

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I think you really got it wrong. They carry some risks.

The Noble and Swiber bonds serve good examples. The companies financial standings are important and their declines were slow. So ample time for bondholders to react.

Yea preference shares are definitely not risk free, in fact they only rank senior to ordinary shareholders, even bonds regularly take 50-70% haircuts when things turn out badly for the company.

Investors need to learn how to analyse financials of individual companies if they want to put their money in preference shares or bonds of individual companies, there is no free lunch.
 
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