Astrea 8 bonds

exterminazn

exterminazn

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Apology anyone knows the steps to apply using OCBC ibanking? I can’t seem to find this option after dabbling the app for 5mins
 
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muthuma

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Astrea 7 Allocation - Class A-1 bond for reference
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BrandonnC

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Can the application be done in multiple applications?
If one has $200k, what is the best strategy to get allocated? 5 times x $40k?
 
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jackiehuat

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dork32 said:
if bankrupt both will probably lose everything.
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Usually there will be remaining assets to be sold off and pay to creditors. The A-1 bond holders are paid first then followed by A-2 bond holders. I am going for the safest option. Astrea is less confident of repaying bond holders this time, extending their final maturity to 15 years from 10 years in previous tranches.

After 15 years, A-1 bond holders will collect 75.25% of their bond value in interests. Most likely they will be able to claw back the remaining 25% in the case of this bond fails. Astrea will also redeem this class first while A-2 may get struck for a longer time.

A-2 bondholders will collect 105.25% in interest after 15 years but they may not claw back anything that is left if the event this bond fails.

"For Class A-1 bonds, the bonds need to be redeemed if the cash set aside in the reserves accounts and reserves custody accounts are sufficient to redeem the bonds. There also needs to be no outstanding credit facility loan.

For Class A-2 bonds, there needs to be no outstanding Class A-1 bonds to be redeemed; the cash set aside in the reserves accounts and reserves custody accounts also need to be enough to redeem the bonds. Like the Class A-1 bonds, there needs to be no outstanding credit facility loan."

Between A-1 and A-2, one has to gauge his risk appetite. There is no free lunch though. High risk high gains.
 
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dork32

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jackiehuat said:
Usually there will be remaining assets to be sold off and pay to creditors. The A-1 bond holders are paid first then followed by A-2 bond holders. I am going for the safest option. Astrea is less confident of repaying bond holders this time, extending their final maturity to 15 years from 10 years in previous tranches.
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usually after the creditors come in, there is nothing left for the bond holders. even if there is something left, it will be a pittance.

you play bond, you are banking that the company dont collapse. if it does, it really did not matter where you are ranked. chances are bond holders will get nothing. i would use the return as a gauge on how attractive a bond is rather than how "safe" it is should the company go bankrupt

no safest option is dont buy bonds
 
BBCWatcher

BBCWatcher

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jackiehuat said:
After 15 years, A-1 bond holders will collect 75.25% of their bond value in interests.
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More correctly that’s 75.25% of nominal bond principal. That’s a greater real-world loss than 24.75% because the alternative yield was not zero but was a positive yielding Singapore Government Security, for example. Moreover, that 75.25% will only happen if that particular tranche can handle it. This security has no recourse to any other tranches or entities. It doesn’t matter if Astrea 7, Astrea 9, and Temasek can keep their promises. Astrea 8’s promises are confined exclusively to Astrea 8’s abilities to keep them.

And that’s why the promised yield is 4.35% with a step up (when the 5 year SGS is yielding about 3.10%). “Just look at the yield.” It comes with some risks. You then evaluate whether ~125 basis points is an acceptable risk premium.
 
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endlssorrow

endlssorrow

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Ai zai laaa
Fraser also launch recently in feb

last time also got this pentrial something bond
 
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