Astrea 8 bonds

[final1]

Not that I am supporting Temasek, but I absolutely loathe people talking about all in bitcoin or Nvidia. Now I can also say if I all in bitcoin when it first started I will be a trillionaire now.

question is who does investment doing all in, and who will know what happens in the future. There’s always risk and reward. Granted Temasek’s return isn’t fantastic, but to say that all in would give better returns is just low.

Urm, all in on a diversified S&P500 ETF then with no paid professional money managers being paid tons of money to generate 1.6% returns.
It will still be so much better.

 

[Tuckie]

Urm, all in on a diversified S&P500 ETF then with no paid professional money managers being paid tons of money to generate 1.6% returns.
It will still be so much better.

That’s the usual school of thought

 

[bruiser69]

Hmm..... worth considering....

 

[limster]

Urm, all in on a diversified S&P500 ETF then with no paid professional money managers being paid tons of money to generate 1.6% returns.
It will still be so much better.

All in is the best. No need to bother with fixed income and cash equivalents, they only reduce your return.

 

[sohguanh]

https://www.businesstimes.com.sg/we...eries-astrea-pe-backed-bonds-retail-investors Azalea launches latest series of Astrea PE-backed bonds for retail investors Jul 10, 2024 (Astrea 8’s Class A-1 Singdollar bonds will carry a fixed coupon of 4.35% a year, and Class A-2 US dollar bonds, 6.35%)
...The minimum subscription for Class A-1 bonds is S$2,000, and for Class A-2 bonds, US$2,000. For subscribers for the Class A-2 bonds, the exchange rate is fixed at US$1 to S$1.35.
Both classes of bonds have a final maturity of 15 years, with a mandatory call at the end of five years for Class A-1 bonds, and at the end of six years for Class A-2 bonds. The public offer will open at 9 am on Jul 11 and close at 12 noon on Jul 17. The bonds will be issued on Jul 19 and will list on the Singapore Exchange on Jul 22...

https://links.sgx.com/1.0.0/prospectus-circulars/52900
via ATMs belonging to the relevant Participating Bank
via the internet banking website or mobile banking interfaces of DBS, UOB, OCBC (eg. IPOs)

Why now minimum is 2000 har? Pay 2 fee 2000 or 3000 or 50000 all same should prorate mah those who bid more pay full 2. Those bid less say 10 cents fee can liao lar

 

[MrClubbie]

Wah lao, suddenly chui, o m g

How come ir low that time Astrea 7 can pay 4.25% then now ir high they pay additional .1% nia? Wtf. They treat investors as gong 1 ah?

u tink dey dunno fed going to lower rates soon

 

[BBCWatcher]

Actually left 5 months to enjoy 4.08% SA

Nope, it's at least 6 months. If you yank dollars out of SA now (to pay for this security) then you lose all of July's interest. (CPF operates on whole months for interest computations.) The government has announced that SAs will be closed (for those age 55+) sometime in "early 2025." Early 2025 could be January 1, 2025, but it won't be any earlier than that.

I definitely wouldn't use dollars currently earning 4.08% interest, government guaranteed and asset protected and liquid, to buy this Astrea 8 security with an uncertain allocation amount that only promises 4.35%, and with some risk (and no asset protection and less liquidity). That's just not a good trade IMHO. If you want to make that trade then I'd make it when you're trading 2.5% interest earning dollars (SA dollars transferred to OA sometime in 2025). Admittedly the yield on these notes might not be 4.35% at that point in time. It could be higher, it could be lower. (Although you would get allocation certainty on the secondary market.) But it's still a bad trade now IMHO.

 

[lzydata]

Can I apply for both SGD and USD ones?

Yes but separately.

14. Can I apply for both Class A-1 Bonds and Class A-2 Bonds?

Yes, you may make one application for Class A-1 Bonds and one separate application for Class A-2 Bonds during the offering period.
Each application under the Class A-1 Public Offer must be at least S$2,000 or higher (in multiples of S$1,000) in principal amount of Class A-1 Bonds.
Each application under the Class A-2 Public Offer must be at least US$2,000 or higher (in multiples of US$1,000) in principal amount of Class A-2 Bonds.

https://www.azalea.com.sg/a8/faqs

 

[lzydata]

For unsuccessful /partial allocation, wonder when the funds will be returned to us,

Should be by the end of the day of 18 July, the allocation and balloting date.

 

[Nofear40]

Nope, it's at least 6 months. If you yank dollars out of SA now (to pay for this security) then you lose all of July's interest. (CPF operates on whole months for interest computations.) The government has announced that SAs will be closed (for those age 55+) sometime in "early 2025." Early 2025 could be January 1, 2025, but it won't be any earlier than that.

I definitely wouldn't use dollars currently earning 4.08% interest, government guaranteed and asset protected and liquid, to buy this Astrea 8 security with an uncertain allocation amount that only promises 4.35%, and with some risk (and no asset protection and less liquidity). That's just not a good trade IMHO. If you want to make that trade then I'd make it when you're trading 2.5% interest earning dollars (SA dollars transferred to OA sometime in 2025). Admittedly the yield on these notes might not be 4.35% at that point in time. It could be higher, it could be lower. (Although you would get allocation certainty on the secondary market.) But it's still a bad trade now IMHO.

I think cash only? Not even SRS

 

[sohguanh]

15 years is quite long even longer than SSB 10 years. Also if they don't recall on fifth year they will continue until till end i.e 15th year? If I sell before time up is use SGX no buyer how? I think based on my age I want monies after I retire in 5 years time. Will give it a miss.

 

[SamSze]

I think cash only? Not even SRS

No, cannot apply for the Bonds using CPF or SRS.

 

[Garlic & Butter]

Many thanks, @hmyoth.

I'm wondering now, does everyone who invest in foreign currency opt for CCY then? No one is desirous of maintaining the proceeds or ever tried receiving the proceeds in the original currency (at all)?

i just read the T&Cs,
cannot CCY or DCS to your multi currency account. USD dividend either CCY to SGD account or remain inside CDP until you wire out at$15
opt out of CCY = your foreign currency remains with CDP, non interest bearing
to wire out, is SGD 15 + receiving bank's fee

quite terrible..

 

[Kayeesha]

i just read the T&Cs,
cannot CCY or DCS to your multi currency account. USD dividend either CCY to SGD account or remain inside CDP until you wire out at$15
opt out of CCY = your foreign currency remains with CDP, non interest bearing
to wire out, is SGD 15 + receiving bank's fee

quite terrible..

Thanks, @Garlic & Butter for your reply.

Yes, I read the “About Astrea 8 PE bond” section in the prospectus and it is exactly as how you have described. If that is the only way to take out the USD with no currency conversion, then it’s too much trouble and definitely not worth it.

I guess it’s about 200bp to take on the currency risk, amongst others, then.

 

[HoGnix]

I only can see A1 is 1.00 SGD, and A2 is 1.35 SGD in DBS Bank App, where is USD for A2.

 

[sohguanh]

I only can see A1 is 1.00 SGD, and A2 is 1.35 SGD in DBS Bank App, where is USD for A2.

In website they say they will use 1.35 so if you apply A2 you can put in SGD using the rate 1.35 and count yourself how much needed to meet USD 2000 minimum.

 

[HoGnix]

In website they say they will use 1.35 so if you apply A2 you can put in SGD using the rate 1.35 and count yourself how much needed to meet USD 2000 minimum.

I have USD in DBS multiply Account, can I use USD to apply A2?

 

[jiabin88]

now the exchange rate is 1usd to 1.343. if kena 10k usd allocation lose 0.7% in principal sum right at the start. am i correct?

 

[ahnyaahnya]

All in is the best. No need to bother with fixed income and cash equivalents, they only reduce your return.

All in is always best.... on hindsight when the counter is flying.
All in may end up going in the opposite direction though.

 

[ahnyaahnya]

They will have mandatory redemption if conditions are met.
What are the conditions?