Astrea 8 bonds

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skizzer

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Astrea 8 is comparatively less attractive as compared to Astrea 7. Back when 7 was issued, US 10-year rate was only 2+%, now its almost 200 bps higher, but basically Astrea 8 A-1 and A-2 are getting re-issued at similar rates. A-2 also suffers from the terrible forex conversion imposed by CDP partner banks (basically 1pp in, and 1pp out, so 33 bps over the 6 years tenure). If A-2 auctioned rate is 6%, net yield including forex commissions are like 5.7% p.a. only for 6 years tenure which is only 100 bps higher than US fed rates. I wish CDP/govt can wake up and force the CDP partner banks to charge sth much more reasonable than 100 bps for cash flow in/out.

Implicit temasek guarantee is powerful lol.
 
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sohguanh

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skizzer said:
Astrea 8 is comparatively less attractive as compared to Astrea 7. Back when 7 was issued, US 10-year rate was only 2+%, now its almost 200 bps higher, but basically Astrea 8 A-1 and A-2 are getting re-issued at similar rates. A-2 also suffers from the terrible forex conversion imposed by CDP partner banks (basically 1pp in, and 1pp out, so 33 bps over the 6 years tenure). If A-2 auctioned rate is 6%, net yield including forex commissions are like 5.7% p.a. only for 6 years tenure which is only 100 bps higher than US fed rates. I wish CDP/govt can wake up and force the CDP partner banks to charge sth much more reasonable than 100 bps for cash flow in/out.

Implicit temasek guarantee is powerful lol.
Click to expand...
CDP partner banks need to earn monies and pay good dividends so why would they make it low? If low means their own stock dividends reduced many ppl again complain. Granted banks have many revenue sources but when there is a chance to earn why don't earn? Wait for cows come home?
 
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skizzer

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sohguanh said:
CDP partner banks need to earn monies and pay good dividends so why would they make it low? If low means their own stock dividends reduced many ppl again complain. Granted banks have many revenue sources but when there is a chance to earn why don't earn? Wait for cows come home?
Click to expand...
Yeah CDP banks have no incentive to do so. CDP themselves or aka govt should reduce these unnecessary costs. Also, frankly stupid to exclude Astrea from CPF/SRS monies. They can bring down the yield even more if they willing to do so. Win-win for Sg citizens and also Astrea/Azalea. All these unnecessary slippage.
 
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sohguanh

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skizzer said:
Yeah CDP banks have no incentive to do so. CDP themselves or aka govt should reduce these unnecessary costs. Also, frankly stupid to exclude Astrea from CPF/SRS monies. They can bring down the yield even more if they willing to do so. Win-win for Sg citizens and also Astrea/Azalea. All these unnecessary slippage.
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I believe to qualify for any investment to take cpf monies there are criteria imposed. One of them is the management fees among others. I have a few mutual fund that used to be able to take cpf monies and then later dunno mas or who set new criteria and some funds instead of complying just stop taking cpf monies. Maybe Astrea is taking too high a cut? Or they don't wanna to comply with the imposed conditions so just stick to cash?
 
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sky1978

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skizzer said:
Astrea 8 is comparatively less attractive as compared to Astrea 7. Back when 7 was issued, US 10-year rate was only 2+%, now its almost 200 bps higher, but basically Astrea 8 A-1 and A-2 are getting re-issued at similar rates. A-2 also suffers from the terrible forex conversion imposed by CDP partner banks (basically 1pp in, and 1pp out, so 33 bps over the 6 years tenure). If A-2 auctioned rate is 6%, net yield including forex commissions are like 5.7% p.a. only for 6 years tenure which is only 100 bps higher than US fed rates. I wish CDP/govt can wake up and force the CDP partner banks to charge sth much more reasonable than 100 bps for cash flow in/out.

Implicit temasek guarantee is powerful lol.
Click to expand...

Perhaps you want to check where you get your reference rate.

I don't see such an adverse difference for my other USD dividends. For example, a few months ago, I had some USD converted by CDP at 1.3445. I checked the Google Finance FX chart, and the rate 2 and 3 days before crediting was 1.3453/1.3459, respectively. FX spot transactions should be settled on a T+2 basis. On the day I got my dividend, the rate was 1.3498, which I know is irrelevant because they are unlikely to do same-day settlement. Even within the same day, the FX market can move by tens of pips, and each pip is 0.0001.

If your reference rate uses the bank's published sell and buy rates, and you used the most favourable published rate for banks to buy from you, then you probably get that 1% difference.
 
AndroidComa

AndroidComa

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Class A-1 Bonds: SGD 4.70% area
Class A-2 Bonds: US$ 6.70% area

estimated
 
M

muthuma

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FSMOne<NEW BOND>
Issuer:Astrea 8 Pte Ltd
Class A1 SGD/Class A2 USD
Price Guide:4.7%area/6.7%area
Tenure:15NC5/15NC6
Min. Amt:SGD10,000/USD10,000
Coupon Freq:SemiAnnual
FOR AI ONLY
 
Guojing88

Guojing88

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muthuma said:
FSMOne<NEW BOND>
Issuer:Astrea 8 Pte Ltd
Class A1 SGD/Class A2 USD
Price Guide:4.7%area/6.7%area
Tenure:15NC5/15NC6
Min. Amt:SGD10,000/USD10,000
Coupon Freq:SemiAnnual
FOR AI ONLY
Click to expand...

Hopefully it will be slightly higher for the retail issue.
 
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Kayeesha

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Regarding the USD tranche, how does one receive the USD proceeds?

Is it possible to have the USD proceeds credited to our multicurrency account (without conversion) free of charge?

Thanks.
 
Guojing88

Guojing88

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I recall the past Astrea issues, the retail one coupon rate is slightly higher than the ones given to AI?

Was it the same?
 
F

final1

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muthuma said:
FSMOne<NEW BOND>
Issuer:Astrea 8 Pte Ltd
Class A1 SGD/Class A2 USD
Price Guide:4.7%area/6.7%area
Tenure:15NC5/15NC6
Min. Amt:SGD10,000/USD10,000
Coupon Freq:SemiAnnual
FOR AI ONLY
Click to expand...
Guidance rate.
Not final rate. Not the same thing.
 
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JHY1003

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Final Prospectus registered with MAS.
Class A-1 S$520 mil (S$260 mil Public Offer) 4.35% p.a.
Class A-2 US$200 mil (US$50 mil Public Offer) 6.35% p.a. (apply in S$ at a fixed rate of US$1.00 to S$1.35)
 
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