MBH/A35 alternatives

[churnmaster]

Surprise no one says build a tbill/bond/shs ladder

Already building one using T bills . . More than half way thru.

 

[chopra]

Already building one using T bills . . More than half way thru.

tts e way. haha


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[sohguanh]

Surprise no one says build a tbill/bond/shs ladder

I believe in the other thread SSB,T-bill,SGS there are mention but all these lock-in monies for X period of months. Selling is not so easy or fast to get back monies. For investor looking for even faster liquidity then those Money Market Funds etc I suggest is a better fit. Realistically speaking one should have both such instruments as they serve different needs.

 

[chopra]

I believe in the other thread SSB,T-bill,SGS there are mention but all these lock-in monies for X period of months. Selling is not so easy or fast to get back monies. For investor looking for even faster liquidity then those Money Market Funds etc I suggest is a better fit. Realistically speaking one should have both such instruments as they serve different needs.

so we said, it is a ladder.

6mth tbill is fortnightly issue. so liquidity is quite ok if u can tide thru every 2 weeks.

i cannot imagine ppl needing alot of money beyond 5 months 2 weeks of rainy days


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[s0crates]

Syfe Cash+ (uses above 2 funds)
Endowus Smart Secure (uses above 2 funds)
StashAway Simple (uses above 2 funds)
FSM Auto-Sweep Account (never disclose what are the holdings)

Yes all these cash management products are low (or even no) fees that may serve as a short term bond holdings. Very good value relative to what was in the market previously.

Surprise no one says build a tbill/bond/shs ladder

Already building one using T bills . . More than half way thru.

Just curious, did you guys buy through the periods when interest rates for 6 month bills were low? Might not be worth it. Which back to my point, bonds need to be slightly more actively managed.

 

[churnmaster]

Just curious, did you guys buy through the periods when interest rates for 6 month bills were low?

No.

 

[sohguanh]

Just curious, did you guys buy through the periods when interest rates for 6 month bills were low? Might not be worth it. Which back to my point, bonds need to be slightly more actively managed.

Before the SSB and T-bill rates rise, I am buying bank FD, single premium insurance endowment plan. Endowus Smart Secure, FSM Auto-Sweep Account and later Syfe Cash+. As for bond, I was thinking it rise too slow and was never a bond lover when market was on a bull run previously. Now starting to re-focus back but this MBH/A35 hmmm. now got Money Market Fund as other options I will see how

 

[sohguanh]

Banks are starting to increase deposit rates. Syfe Cash+, Endowus Smart Secure, StashAway Simple are now facing heat to get better returns. I intend to stop topping up such cash mgmt options and revert back to bank deposit rates where capital is guaranteed and their FAST is immediate some more.

 

[sohguanh]

In lieu of upcoming savings deposit interest rate rise among the banks, anyone start to redeem partial of all of those cash mgmt solution? Syfe Cash+, Endowus Smart Secure, StashAway Simple etc to give some e.g

I know I have redeem all/partial from my dollarDex, Endowus, Syfe. Bank savings deposit I deem them safer compared to those cash mgmt solution.

 

[churnmaster]

In lieu of upcoming savings deposit interest rate rise among the banks, anyone start to redeem partial of all of those cash mgmt solution? Syfe Cash+, Endowus Smart Secure, StashAway Simple etc to give some e.g

I know I have redeem all/partial from my dollarDex, Endowus, Syfe. Bank savings deposit I deem them safer compared to those cash mgmt solution.

Imagine if majority of investors try to redeem now, the funds will be forced to dump their holdings to meet the redemptions. And incase if it is difficult to do so due to illiquid markets, then they may impose restrictions on redemptions or impose some high exit fees.

This is the risk one needs to consider while investing in a UT compared to an ETF and such events have happened in the past.

 

[sohguanh]

Imagine if majority of investors try to redeem now, the funds will be forced to dump their holdings to meet the redemptions. And incase if it is difficult to do so due to illiquid markets, then they may impose restrictions on redemptions or impose some high exit fees.

This is the risk one needs to consider while investing in a UT compared to an ETF and such events have happened in the past.

Which is why must fast leg fast hand which I did this morning hehe. But no guarantee still remember my Russia UT same day redeem still it drop by half ! But since cash mgmt solution is investing in those low risk or money market funds I think it should not take such a big hit.

Think UT redeem request cut off time to be treated today is afternoon 2 or 3 PM for Endowus, FSM etc.

 

[churnmaster]

Which is why must fast leg fast hand which I did this morning hehe. But no guarantee still remember my Russia UT same day redeem still it drop by half ! But since cash mgmt solution is investing in those low risk or money market funds I think it should not take such a big hit.

Think UT redeem request cut off time to be treated today is afternoon 2 or 3 PM for Endowus, FSM etc.

So now you flipped after trying to convince others to consider these products

 

[sohguanh]

So now you flipped after trying to convince others to consider these products

How I know today 01 Aug 2022 some of the banks announce the increase in savings deposit rate? If I know this news last week will not recommend already correct? But I did not redeem all as I want to adopt a wait and see how it work out for those cash mgmt solution. I would say I redeem half but not all.

 

[reddevil0728]

So now you flipped after trying to convince others to consider these products

Actually changing position after knowing more information is the right thing to do Ma. Nothing wrong about it.

 

[churnmaster]

Actually changing position after knowing more information is the right thing to do Ma. Nothing wrong about it.

Yeah nothing wrong with that.

 

[s0crates]

Imagine if majority of investors try to redeem now, the funds will be forced to dump their holdings to meet the redemptions. And incase if it is difficult to do so due to illiquid markets, then they may impose restrictions on redemptions or impose some high exit fees.

This is the risk one needs to consider while investing in a UT compared to an ETF and such events have happened in the past.

You aware of any real life example of these restrictions/high exit fees happening?

On the contrary, I heard about how there was an "etf run", the equivalent of bank run when stashaway dumped millions of dollars of KWEB. Next few days immediately recovered. Idk coincidence or what, but I find it hard to believe etf is any better.

 

[churnmaster]

You aware of any real life example of these restrictions/high exit fees happening?

On the contrary, I heard about how there was an "etf run", the equivalent of bank run when stashaway dumped millions of dollars of KWEB. Next few days immediately recovered. Idk coincidence or what, but I find it hard to believe etf is any better.

It has happened in 2008/9 after which a lot of regulations were introduced. You may read up if you want to know more.

https://www.ici.org/doc-server/pdf:13_mmf_liquidity_fee_gates.pdf
https://www.blackrock.com/corporate...nt-central-open-ended-funds-november-2020.pdf

 

[simsim1234]

So in summary what are the MBH/A35 alternatives?

 

[zzTiny]

For A35, a sgs ladder because thats what it is the same, just that you get to customize the duration you are willing.

For MBH, most of it is actually quasi sovereign and perp bonds, Quasi-sovereign might as well be sgs. Perp bonds have its own quirks which I didn't research.

Sg bonds market is really shitty if I want to say.

 

[s0crates]

So in summary what are the MBH/A35 alternatives?

All stated above already. Depending on your needs, you should choose what works best for you. Regardless with yield curve flattening now, Tbills and/or short duration bond funds should work well.