Astrea 8 bonds

Garlic & Butter

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just realised a few things:

1. FX rate quite poor at 1.27xx when spot was 1.28xx
2. interest is calculated at 30/360 basis. Over the course of 1 year, you lose out 5 days of interest (if ACT/360 was used instead)
3. CDP makes it hard for you to receive coupons in USD, costly to wire out to local account and apply poor FX rates for DCS into SGD
4. when IPO, also poor FX rates by at least 100+ pips
 

tehhalia

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just realised a few things:

1. FX rate quite poor at 1.27xx when spot was 1.28xx
2. interest is calculated at 30/360 basis. Over the course of 1 year, you lose out 5 days of interest (if ACT/360 was used instead)
3. CDP makes it hard for you to receive coupons in USD, costly to wire out to local account and apply poor FX rates for DCS into SGD
4. when IPO, also poor FX rates by at least 100+ pips

in hindsight, is the higher interest rate for USD denominated bond still worth it?
 

maumu

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in hindsight, is the higher interest rate for USD denominated bond still worth it?
I think it should help buffer against the drop of USD... but not sure by how much. well, we'll see when they decide to redeem during the first call date (in 2030).
 
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