Corporate Bond Discussion

[OngHuatHuat]

Currently I am looking to buy a corporate bond to form part of my fixed income portfolio. There are a few bonds that come into my mind:
1. MAXI-CASH FINANCIAL SERVICES CORPORATION LTD.
MSFSSP APR2020 CORP (SGD)
5.5%

2. https://secure.fundsupermart.com/fsm/bonds/factsheet/XS1484844656/DBSSP-3-600-Perpetual-Corp-USD

DBS Perpetual 3.6%, current bid to maturity 4.2%

3.https://secure.fundsupermart.com/fs...unces-4Y-USD-Bonds-at-6-5-37-Indicative-Yield

Oxley holdings 4 Years USD Bonds 6.5% indicative yield


Currently I am more in favor of buying 1 or 3.

IS there any other platform besides bondsupermart?
This platform charges 0.05% platform fee per quarter which will reduce the yield by approximately 0.2% per annum.

 

[Majestic12]

Bondsupermart is your best option for minimal fees.

Better to pay a small fee and have it stated upfront instead of a seemingly cost-free transaction where the pricing is opaque with the costs hidden.

Don't be like my client who acquired Frasers perpetual bond from a bank. He was shafted by 200 basis points.

 

[OngHuatHuat]

Bondsupermart is your best option for minimal fees.

Better to pay a small fee and have it stated upfront instead of a seemingly cost-free transaction where the pricing is opaque with the costs hidden.

Don't be like my client who acquired Frasers perpetual bond from a bank. He was shafted by 200 basis points.

Is it more advisable to just purchase bonds listed in US?

 

[Majestic12]

Is it more advisable to just purchase bonds listed in US?

Do you mean buying USD bonds locally or via a foreign broker?

I'm not sure about the latter, but I have a few clients trading USD bonds. Liquidity and yields are way better.

 

[OngHuatHuat]

Do you mean buying USD bonds locally or via a foreign broker?

I'm not sure about the latter, but I have a few clients trading USD bonds. Liquidity and yields are way better.

Buy via US brokers.

 

[dork32]

200k min bid size. now powerful enough

 

[w1rbelw1nd]

I personally would recommend buying US bond etfs *IF* you are investing long term so that short term FX fluctations is less of a risk.

Any investment grade corporate bond ETFs should fulfill your needs IMO.

 

[limster]

Bondsupermart is your best option for minimal fees.

Better to pay a small fee and have it stated upfront instead of a seemingly cost-free transaction where the pricing is opaque with the costs hidden.

Don't be like my client who acquired Frasers perpetual bond from a bank. He was shafted by 200 basis points.

True. You should show your banker the FSM price and ask them if they can match. If they can't just walk away.

FSM also has the "Bond Express" feature where you slice selected $200k bonds in smaller tranches of $5k for individual investors to buy. But they make the market so their income comes from platform fees and the bid-offer spread which they set.

Credit to FSM to being a first mover in this area, but competition is needed to bring costs down.

 

[Mecisteus]

FSM also has the "Bond Express" feature where you slice selected $200k bonds in smaller tranches of $5k for individual investors to buy. But they make the market so their income comes from platform fees and the bid-offer spread which they set.

You need to be an AI to buy in smaller denomination.

Anyone can trade via Bond Express. However, for wholesale bonds, smaller denomination investments via Bond Express will be applicable to Accredited Investors only.

 

[Majestic12]

True. You should show your banker the FSM price and ask them if they can match. If they can't just walk away.

FSM also has the "Bond Express" feature where you slice selected $200k bonds in smaller tranches of $5k for individual investors to buy. But they make the market so their income comes from platform fees and the bid-offer spread which they set.

Credit to FSM to being a first mover in this area, but competition is needed to bring costs down.

Some clients still buy via their bankers because of relationship, especially if the banker is very helpful.

I'm unsure if there can be other competitors similar to FSM in terms of scale and success - Singapore's market depth is only that deep.

 

[Majestic12]

I personally would recommend buying US bond etfs *IF* you are investing long term so that short term FX fluctations is less of a risk.

Any investment grade corporate bond ETFs should fulfill your needs IMO.

Yes. For short term or swing trades - individual bonds are aplenty. USD bonds are way more attractive than SGD ones.

 

[OngHuatHuat]

Some need 200 k usd minimum.

200k min bid size. now powerful enough

 

[OngHuatHuat]

Do you have any US bonds worth looking at?

Yes. For short term or swing trades - individual bonds are aplenty. USD bonds are way more attractive than SGD ones.

 

[OngHuatHuat]

The otc market is quite inefficient. My experience so far, only fund supermart able to offer best price.

True. You should show your banker the FSM price and ask them if they can match. If they can't just walk away.

FSM also has the "Bond Express" feature where you slice selected $200k bonds in smaller tranches of $5k for individual investors to buy. But they make the market so their income comes from platform fees and the bid-offer spread which they set.

Credit to FSM to being a first mover in this area, but competition is needed to bring costs down.

 

[Majestic12]

Do you have any US bonds worth looking at?

I don't have the names offhand as I don't trade bonds with my money. My latest info is from a derivatives firm client who is trading a particular commodity company's bonds where the pricing is below par.

 

[OngHuatHuat]

Thanks anyway, I go read up a bit on my own first.

I don't have the names offhand as I don't trade bonds with my money. My latest info is from a derivatives firm client who is trading a particular commodity company's bonds where the pricing is below par.

 

[OngHuatHuat]

https://secure.fundsupermart.com/fsm/bonds/factsheet/US404280BC26/HSBC-6-875-Perpetual-Corp-USD

HSBC 6.875% Perpetual (USD)

 

[OngHuatHuat]

https://secure.fundsupermart.com/fsm/bonds/factsheet/SG6T26979516/OLAMSP-7-000-Perpetual-Corp-SGD

Olam 7% Perpetual(SGD)

 

[OngHuatHuat]

UOB 4.9% perpetual(SGD):

 

[OngHuatHuat]

DBS 4.7% Perpetual(SGD), callable 2020: