Astrea 8 bonds

[Lè Crayons]

S$213.30 for USD5k in

The conversation rate used is so cui...

My first time using sgx for usd currency...

 

[reddevil0728]

The conversation rate used is so cui...

My first time using sgx for usd currency...

That’s the risk when buying FCY denominated bond thinking that the yield is higher, but then cannot control the conversion or currency fluctuation.

Might be better off just buying SGD denominated.

 

[hmyoth]

The conversation rate used is so cui...

My first time using sgx for usd currency...

For now return still higher than A1 4.35%. 6750x184/365x4.35% only S$148.02.

 

[Guojing88]

That’s the risk when buying FCY denominated bond thinking that the yield is higher, but then cannot control the conversion or currency fluctuation.

Might be better off just buying SGD denominated.

Well, since the SGD one is capped, and many of us hit that cap, no choice anyway.

 

[reddevil0728]

Well, since the SGD one is capped, and many of us hit that cap, no choice anyway.

I wouldn’t necessarily say no choice.

just that this choice a lot of unknowns

 

[italki]

will the A2 interest subject to WHT?

 

[Lè Crayons]

will the A2 interest subject to WHT?

No

 

[parkson]

Dad looking to park some spare funds, looking to buy the 8a2 on the open market, yield is currently 5% for the USD, wondering if you guys have any thoughts on this?

 

[reddevil0728]

Dad looking to park some spare funds, looking to buy this on the open market, yield is currently 5.9% for the USD, wondering if you guys have any thoughts on this?

Why usd specifically. He has USD currently?

 

[HoGnix]

Dad looking to park some spare funds, looking to buy this on the open market, yield is currently 5.9% for the USD, wondering if you guys have any thoughts on this?

8A2? not sure how to arrive 5.9%. my calculation is only 5.0% as of saling price is now 1.07. need take consideration if the conversion loss in both buy and sale process if using SGD.

 

[parkson]

Why usd specifically. He has USD currently?

I mean the USD denominated Astrea 8a2

 

[reddevil0728]

I mean the USD denominated Astrea 8a2

Yea why that? Cause of higher interest rate? Or cause already got USD?

 

[parkson]

8A2? not sure how to arrive 5.9%. my calculation is only 5.0% as of saling price is now 1.07. need take consideration if the conversion loss in both buy and sale process if using SGD.

Ah yes it’s around 5% miscalculation by me

 

[parkson]

Yea why that? Cause of higher interest rate? Or cause already got USD?

Higher interest rate

 

[reddevil0728]

Higher interest rate

then that doesn't seem like a very well reasoned thing to do.

Have you thought about fx fluctuation which might (will) eventually erode the higher interest rate that comes with it?

 

[ryuxdragonx]

Looks like they are running their annual webinar here.

https://zoom.us/webinar/register/3217394189301/WN_wVNubDb5RIqu2FmbC-pHFQ

 

[orlengtao]

then that doesn't seem like a very well reasoned thing to do.

Have you thought about fx fluctuation which might (will) eventually erode the higher interest rate that comes with it?

Alot people nv think far for this. A merely 0.02rate drop could mean a 1.x% rate drop, which result in 3.x rate. Somemore, you have fx converstation fee.

 

[reddevil0728]

Alot people nv think far for this. A merely 0.02rate drop could mean a 1.x% rate drop, which result in 3.x rate. Somemore, you have fx converstation fee.

Then they need to start to if not later as usual blame ppl never their fault

 

[italki]

Alot people nv think far for this. A merely 0.02rate drop could mean a 1.x% rate drop, which result in 3.x rate. Somemore, you have fx converstation fee.

sorry, I couldn't catch your point. how 0.02 rate drop result in 3.x rate?

 

[orlengtao]

sorry, I couldn't catch your point. how 0.02 rate drop result in 3.x rate?

Just a random example based on 3 days ago.
USD to sgd dropped from 1.37 to 1.34 =2.18% drop.

Your 5.9% interest - 2.18 = 3.72%.