DBS Bond offering

[satomoto]

Hi guys,

I am looking at DBS' bond offering (DBSSP 3.300% Perpetual Corp), but honestly I am a newbie in this, my objective is to park some of my USD into a safe haven that yields better than the current 0.1% FD rate.

My question, since this is a DBS bond can I say that it is directly insured by DBS?

Thank you.

 

[reddevil0728]

Hi guys,

I am looking at DBS' bond offering (DBSSP 3.300% Perpetual Corp), but honestly I am a newbie in this, my objective is to park some of my USD into a safe haven that yields better than the current 0.1% FD rate.

My question, since this is a DBS bond can I say that it is directly insured by DBS?

Thank you.

What do you mean “insured”? If dbs can’t pay, they can’t pay.

 

[limster]

not many Singapore investors got US$200k spare cash lying around. makes me wonder how much spare S$ you have in bank accounts

 

[Adonai.avatar]

These are perps with very long duration. Any small increase in interest rate can lead to big price declines. So, yes, being DBS, credit risk is low, but you are still taking interest rate risk.

 

[Dividends]

That's not a safe haven/risk free place to park your money if that's your goal. You might want to look at SSB instead if you're very risk averse.

 

[reddevil0728]

That's not a safe haven/risk free place to park your money if that's your goal. You might want to look at SSB instead if you're very risk averse.

SSB where got USD?

 

[hoks]

Hi guys,

I am looking at DBS' bond offering (DBSSP 3.300% Perpetual Corp), but honestly I am a newbie in this, my objective is to park some of my USD into a safe haven that yields better than the current 0.1% FD rate.

My question, since this is a DBS bond can I say that it is directly insured by DBS?

Thank you.

So long as dbs is not bankrupt, u will get ur interest.

Perps normally has early call dates and conditions for it. U may wanna find out these.

 

[satomoto]

Made my first bond investment with DBS bond in September, if I sell my bond today I would have made ~1%, after slightly over 100 days of holding the bond. That coincides with my expectation of 3.3%, since as the bond name goes DBS Perpetual 3.3, but my trader took his cut I am sure of that so perhaps 3% is what I realistically am getting.

What I learnt

Traders take the spread
This happens as you have to engage your trader to buy and sell, you are at his mercy as there is always a spread and I can't tell if this is the real market spread or they have put it the difference.

Bonds are better than FD.
This is up for arguments and I really cannot digest the nitty gritty but seems all the rich fund managers prefer bonds to FD.

I am now considering to put in another investment into DBS bond, not because I really think it's great, but the interest rates environment is just too lousy.

 

[lifeafter41]

Usd is weakening vis a vis to Sing dollars.
Not sure what’s the percentage though......

Might not be worthwhile overall with the weakening and fx loss.......imo.

 

[tyr9292]

Easy.. just ask your rm for clarification on the spread bro... if not see mkt price, agar can alr.

Comparing bonds to fd not apple to apple. Just part of a portfolio. If you’re hyper risk averse then whether interest rate Low or high ur portfolio is 100% fd.. this just means u r open to investments..

Made my first bond investment with DBS bond in September, if I sell my bond today I would have made ~1%, after slightly over 100 days of holding the bond. That coincides with my expectation of 3.3% but my trader took his cut I am sure of that so perhaps 3% is what I realistically am getting.

What I learnt

Traders take the spread
This happens as you have to engage your trader to buy and sell, you are at his mercy as there is always a spread and I can't tell if this is the real market spread or they have put it the difference.

Bonds are better than FD.
This is up for arguments and I really cannot digest the nitty gritty but seems all the rich fund managers prefer bonds to FD.

I am now considering to put in another investment into DBS bond, not because I really think it's great, but the interest rates environment is just too lousy.

 

[satomoto]

Made my first bond investment with DBS bond in September, if I sell my bond today I would have made ~1%, after slightly over 100 days of holding the bond. That coincides with my expectation of 3.3%, since as the bond name goes DBS Perpetual 3.3, but my trader took his cut I am sure of that so perhaps 3% is what I realistically am getting.

What I learnt

Traders take the spread
This happens as you have to engage your trader to buy and sell, you are at his mercy as there is always a spread and I can't tell if this is the real market spread or they have put it the difference.

Bonds are better than FD.
This is up for arguments and I really cannot digest the nitty gritty but seems all the rich fund managers prefer bonds to FD.

I am now considering to put in another investment into DBS bond, not because I really think it's great, but the interest rates environment is just too lousy.

So after 2 + months buying my first bond, I am getting my first dividend. Based on 3.3% I am suppose to get USD6600.

Evidently the market is still showing that bond return is lousier than the market, but better than interest rates.

More lessons to learn to up financial market learnings.

 

[duhduhduh]

So after 2 + months buying my first bond, I am getting my first dividend. Based on 3.3% I am suppose to get USD6600.

Evidently the market is still showing that bond return is lousier than the market, but better than interest rates.

More lessons to learn to up financial market learnings.

Hello bro,

You mean getting your bond coupon payment (not dividend) right?

Coupon payment should be semi-annual (twice per year), so you should be getting 3300 instead. Another 3300 in another 6 months time.

 

[satomoto]

Hello bro,

You mean getting your bond coupon payment (not dividend) right?

Coupon payment should be semi-annual (twice per year), so you should be getting 3300 instead. Another 3300 in another 6 months time.

You are right, it's coupon payment, and right that it's half so not 6600 but 3300. After miscellaneous I received USD$3,261.93.