More launching of retail bonds
http://infopub.sgx.com/FileOpen/OISLodgment.ashx?App=Announcement&FileID=374879
any takers?
http://infopub.sgx.com/FileOpen/OISLodgment.ashx?App=Announcement&FileID=374879
any takers?
New $$$ pay old $$$ haha
this statement is totally correct. if they borrow at 5% and they are able to get profits at 10% then all is well.As long as they can continue generate $$ from their investment & that's is a good debt.
Haha yea indeed we also have a famous debtor here doing that. Balance trf to cover old debts. Keep on rolling baby!
this is what debt is about, right? even dbs launch a new 4.7 pref shares to replace their old 6%
They replace it because their old preference share terms were not in line with Basel 3 qualification. Yea, you do have a point though, bonds cannot be studied like equities.
Oxley have 516mil worth of net asset, 293mil cash, 4x interest coverage. Financial leverage at ard 8.247x around, full year Jun 2015 ard 62% geared. Looks like this is an aggressive growing company. They have launched 30 projects and has completed 16 projects. Their Kap and Kap Residence at bukit timah is currently 99% sold. Their other four bond issues all trading above par.
Worth the risk to hold for 4 years? Maybe a nibble but definitely not all in. The issue size is small, and if **** hits the fan they can liquidate their assets? From my side, the demand from the private tranche is huge. Me personally still thinking whether to pass or to nibble...
Its time companies stop taking the retail folks for fools and pay crap pricing to the man on street jsut because they have a lack of options.
damn shitty deal. i look at bonds from 4 angles. Price, Credit strength, Mgmt, Liquidity.
Price / relative value:
their previous bonds trading above par doesnt mean much to me. If they issued at wide lvls in the past and the bonds traded tighter inwards. Issuing new bonds at the new tighter pricing doesnt mean that the new bonds will trade above par.
the Oxleys 5.1% maurity Oct-2016 is quoted at 100.75 (4.38%). Thats about 290bps in credit spread. Comparing that with the new Oxleys 4yrs 5% (credit spread of 285bps).
You are better off buying the 2016 Oxleys. Less duration risk as well. At least if I buy I know I will get my money back earlier than those holding the 4yr bonds.
Credit strength:
their gearing, debt/ebit, FCF is very horrific. Ebit-interest expense also not great. Against a rising rate environment, softening property market, they can refi now but no guarantee can re-fi in future.
Mgmt:
anyone here attended their investor meetings or roadshows or AGMs before? if u did, i think you will know when I say that I dont get a good vibe lending money to them
Liquidity:
retail (and corporate as well) bond markets are quite illiquid. are I assured of a bid when I want to sell? hard to say
Its time companies stop taking the retail folks for fools and pay crap pricing to the man on street jsut because they have a lack of options.
They replace it because their old preference share terms were not in line with Basel 3 qualification. Yea, you do have a point though, bonds cannot be studied like equities.
damn shitty deal. i look at bonds from 4 angles. Price, Credit strength, Mgmt, Liquidity.
the Oxleys 5.1% maurity Oct-2016 is quoted at 100.75 (4.38%). Thats about 290bps in credit spread. Comparing that with the new Oxleys 4yrs 5% (credit spread of 285bps).
You are better off buying the 2016 Oxleys. Less duration risk as well. At least if I buy I know I will get my money back earlier than those holding the 4yr bonds.
Where do we buy the Oxleys 5.1% mature Oct-2016? Can't find it in any trading platform? Also, it may be quite illiquid.
cannot find on sgx means likely it is the 200k type of bond. you dont have 200k, you can forget about it.
Where do we buy the Oxleys 5.1% mature Oct-2016? Can't find it in any trading platform? Also, it may be quite illiquid.
cannot find on sgx means likely it is the 200k type of bond. you dont have 200k, you can forget about it.