Astrea 8 bonds

[endlssorrow]

This A8 pay twice a year?

 

[bargin]

This A8 pay twice a year?

yes, six month twice

 

[BBCWatcher]

This A8 pay twice a year?

yes, six month twice

For clarity, the Astrea 8 securities promise semi-annual coupon payments (every 6 months) until maturity or until call, whichever comes first. The coupons are computed (for the Singapore dollar denominated variant) based on 4.35% p.a. in the initial 5 year period and with a step up rate if the securities are not called. There's a possibility Astrea 8 won't keep these promises.

 

[sohguanh]

I think readers need to know the Hyflux saga. This bond is not backed or supported by Temasek in any way even if the company is so called a subsidiary. A lot of readers investors once hear the magic word Temasek go crazy safe lar won't collapse lar govt leh. This bond can play of cuz based on their past track record but just don't all in will be fine.

 

[abcde78]

I think readers need to know the Hyflux saga. This bond is not backed or supported by Temasek in any way even if the company is so called a subsidiary. A lot of readers investors once hear the magic word Temasek go crazy safe lar won't collapse lar govt leh. This bond can play of cuz based on their past track record but just don't all in will be fine.

All in 4 million...
Shake leg retire

 

[jackiehuat]

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

A-2 is still higher risk than A-1. A-1 is redeemed at 5 years. May left nothing for A-2 at sixth year. I am going A-1. If you think its worth the risk, go for it then.

 

[jackiehuat]

I think readers need to know the Hyflux saga. This bond is not backed or supported by Temasek in any way even if the company is so called a subsidiary. A lot of readers investors once hear the magic word Temasek go crazy safe lar won't collapse lar govt leh. This bond can play of cuz based on their past track record but just don't all in will be fine.

Hyflux is perpetual bond. They can default perpetually. Even riskier.

 

[BBCWatcher]

A-2 is still higher risk than A-1. A-1 is redeemed at 5 years.

Azalea hopes to call their Astrea 8 securities at 5 years (A-1) and 6 years (A-2). But even Azalea doesn't promise that. Whether these securities are called or not will depend chiefly on the performance of the underlying investments.

Let's try to be reasonably precise in describing these securities fairly and accurately.

 

[Lè Crayons]

Can I do a poll to see who will invest in this?

a) A-1 only
b) A-2 only
c) Both A-1 and A-2
d) Won't invest

 

[jackiehuat]

Azalea hopes to call their Astrea 8 securities at 5 years (A-1) and 6 years (A-2). But even Azalea doesn't promise that. Whether these securities are called or not will depend chiefly on the performance of the underlying investments.

Let's try to be reasonably precise in describing these securities fairly and accurately.

Of course! I am just trying to compare A-1 and A-2 to dork32. No matter what, A1 is still lower risk than A2. You are taking out of context.

 

[DevilPlate]

Can I do a poll to see who will invest in this?

a) A-1 only
b) A-2 only
c) Both A-1 and A-2
d) Won't invest

Prolly press for A1 nia

A2 exchange rate fixed at 1.35 …..kena makan around 0.5% upfront liao
I will js continue to accumulate IDTL with better potential for capital gain

 

[BrandonnC]

A-2 is still higher risk than A-1. A-1 is redeemed at 5 years. May left nothing for A-2 at sixth year. I am going A-1. If you think its worth the risk, go for it then.

The credit risks for A-1 and A-2 are similar, but A-2 seems to have better rates, but will need to consider FX risks.
Question is: How will USD fare against SGD in future, especially for the next 5 years?
Will the additional 2% enough to cushion the worst FX impact?

 

[limster]

The credit risks for A-1 and A-2 are similar, but A-2 seems to have better rates, but will need to consider FX risks.
Question is: How will USD fare against SGD in future, especially for the next 5 years?
Will the additional 2% enough to cushion the worst FX impact?

A-1 is Fitch A+ sf and A-2 is Fitch A sf

Some say A+ and A are "similar", some say A+ and A are "different". Both are correct.

As a matter of common sense, the lower the credit rating, the higher the yield needed to compensate for the increased credit risk.

 

[homedriver]

Prolly press for A1 nia

A2 exchange rate fixed at 1.35 …..kena makan around 0.5% upfront liao
I will js continue to accumulate IDTL with better potential for capital gain

But 2% interest differences

 

[jess_sy]

Can I do a poll to see who will invest in this?

a) A-1 only
b) A-2 only
c) Both A-1 and A-2
d) Won't invest

A-1

 

[dork32]

A-2 is still higher risk than A-1. A-1 is redeemed at 5 years. May left nothing for A-2 at sixth year. I am going A-1. If you think its worth the risk, go for it then.

hyfulx bonds was safer than the perpetual, which is safet than the preference shares, which is safer than ordinary shares, how much did each group get>

swiber bonds was safer than the ordinary shares, how much did the swiber bond holders get?

the fact is that is astrea were to go down, there is no difference where you are ranked.

my choice of buying ai or a2 would be the currency risk that i will be exposed to. us is cutting rate soon. us$ is expected to drop should they do so. i will evaluate if the 2% extra interest will be able to cover this loss.

 

[jackiehuat]

hyfulx bonds was safer than the perpetual, which is safet than the preference shares, which is safer than ordinary shares, how much did each group get>

swiber bonds was safer than the ordinary shares, how much did the swiber bond holders get?

the fact is that is astrea were to go down, there is no difference where you are ranked.

my choice of buying ai or a2 would be the currency risk that i will be exposed to. us is cutting rate soon. us$ is expected to drop should they do so. i will evaluate if the 2% extra interest will be able to cover this loss.

Then don't buy lor.

 

[jackiehuat]

A-1

A-1

 

[BrandonnC]

my choice of buying ai or a2 would be the currency risk that i will be exposed to. us is cutting rate soon. us$ is expected to drop should they do so. i will evaluate if the 2% extra interest will be able to cover this loss.

The current FX rate is 1.35 at 6.35% for A-2.
Even if the rate drops to 1.30 or 1.25, the effective returns are still about 5.X% and 4.X%. Still respectable returns.

 

[Lè Crayons]

The current FX rate is 1.35 at 6.35% for A-2.
Even if the rate drops to 1.30 or 1.25, the effective returns are still about 5.X% and 4.X%. Still respectable returns.

I am also thinking of getting A-2. When compared to US Treasury Notes, the interest is 1% more.

@BBCWatcher what is your opinion of A-2?