Corporate bonds

[Sai777]

Sorry, this may be a dumb question, but can we get leverage if we buy via broker?

And a noob question, buying via broker means someone like Kim Eng (i.e. non bank platform)?

Short answer : Yes

 

[neanea]

Sai777, you buy through rm or broker?

 

[wondrdoggie]

Can you get oversea bond placements as well? I'm not talking like those super hot American bond issues (Apple, Exxon, etc.) but like midcaps? Will you get the same spreads or way more exorbitant?

yep, can buy overseas bonds and I believe same spreads. But like I said, diff customers will get different rates. Key is to nego and lock down all rates before you signup with the bank. The more aum you have with them, the better your rates.

 

[Alwaysb]

Hi all,

I am a newbie to bonds too. Hope to get some advice here.

I bought ezion bond with uob after the rm told me that i can leverage on the bond. As when i sign on the dotted line and traded the bond, the rm told me that the bank has remove the bond from borrowing.

I happen to speak to my rm from dbs and was told my bond allow for 60% leverage but i have to transfer to their bank which uob quoted me $1k to do so.

My questions are
1) how does this leverage works? Can it be pulled out anytime from the bank like how it happen to my experience with uob?

2) does it make sense to leverage because since i had no choice but to wait till maturity which will be another 2 more years to go. I thot the leverage will somehow fetch a better yield than the current 4.5%

3) i saw somewhere that says buying from brokerage firm can also do leveraging. Can anyone confirm this?

4) it was also mentioned that buying through broker only cost 0.2%. My uob rm told me it 50 cents while dbs told me its a $1. However, i realized since we can't tell the real otc bond prices, how ti validate these so call spread by the banks?

Thank you

 

[neanea]

I heard ezion belly up soon

 

[Alwaysb]

I heard ezion belly up soon

Any source?

 

[Alwaysb]

My bankers had no words of comfort for me. They pointed to swiber when I transferred all my bonds from UOB and said "cannot have too many of these type, one is enough".

That's also one of the reasons I am no longer active with UOB, I didn't feel they gave me good advices.

Hi, how much do you pay for the transfer? So you are now active with scb only?

 

[zzxiaoboizz]

Hi all,

I am a newbie to bonds too. Hope to get some advice here.

I bought ezion bond with uob after the rm told me that i can leverage on the bond. As when i sign on the dotted line and traded the bond, the rm told me that the bank has remove the bond from borrowing.

I happen to speak to my rm from dbs and was told my bond allow for 60% leverage but i have to transfer to their bank which uob quoted me $1k to do so.

My questions are
1) how does this leverage works? Can it be pulled out anytime from the bank like how it happen to my experience with uob?

2) does it make sense to leverage because since i had no choice but to wait till maturity which will be another 2 more years to go. I thot the leverage will somehow fetch a better yield than the current 4.5%

3) i saw somewhere that says buying from brokerage firm can also do leveraging. Can anyone confirm this?

4) it was also mentioned that buying through broker only cost 0.2%. My uob rm told me it 50 cents while dbs told me its a $1. However, i realized since we can't tell the real otc bond prices, how ti validate these so call spread by the banks?

Thank you

Leverage means u borrow to buy the bond. E.g bond is 100k u leverage 60% means u pay 40k upfront and u borrow 60k at a sum of money.
It makes sense to leverage only if u are confident of that bond and have enough money to pay back should the bond uplorry and u need to repay the loan amt
For otc i think u need to contact the bank that is in charge of ur bonds to see the rates since they are not listed on sgx

The other experts pls correct me as i may not be 100% accurate

Sent from Samsung SM-N910G using GAGT

 

[Daimon]

Tiagong more corporate bonds will default.

 

[zuoom]

What's happening to all these bonds of late?

 

[Alwaysb]

Thanks for the reply

Leverage means u borrow to buy the bond. E.g bond is 100k u leverage 60% means u pay 40k upfront and u borrow 60k at a sum of money.
It makes sense to leverage only if u are confident of that bond and have enough money to pay back should the bond uplorry and u need to repay the loan amt
For otc i think u need to contact the bank that is in charge of ur bonds to see the rates since they are not listed on sgx

The other experts pls correct me as i may not be 100% accurate

Sent from Samsung SM-N910G using GAGT

 

[wondrdoggie]

Hi, how much do you pay for the transfer? So you are now active with scb only?

Not sure, just some admin fee probably. I don't use scb. I use UBS, Credit Suisse and JP Morgan.

 

[Alwaysb]

Thanks. This uob charging me 1k just for transfer... hmmm

Not sure, just some admin fee probably. I don't use scb. I use UBS, Credit Suisse and JP Morgan.

 

[focus1974]

Thanks. This uob charging me 1k just for transfer... hmmm

eh.. i think bond transfer is free...
just need to fill out some forms. .. not by you.. by your rm.

i transfer between banks before..
Credit Suisse and UBS to DBS

 

[Daimon]

I want to buy CDS on SG corporate bonds.

 

[beautyseek]

Checking on what are mkt spreads now? I am quoted 0.5% by cimb preferred banking and stanchart priority and hsbc premier. All same. Anywhere can get cheaper? Brokers? Or upgrade to private banking?

 

[bright_84]

Everyone has some different degree of spread, either by transaction brokerage or custody fee.

 

[beautyseek]

Everyone has some different degree of spread, either by transaction brokerage or custody fee.

None of the banks i asked charges custody fees. It seems spreads.arr negotiable then.