New Astrea V

[yongsaver]

today another temasek related company issue perpetual bond. 5.75% area. stanchart bank. like astrea V, demand overwhelming.

 

[715599798]

Where you can find this information?Thanks

today another temasek related company issue perpetual bond. 5.75% area. stanchart bank. like astrea V, demand overwhelming.

 

[yongsaver]

Where you can find this information?Thanks

bondsupermart will show what bonds are being issued for that day.

 

[demoforce1]

today another temasek related company issue perpetual bond. 5.75% area. stanchart bank. like astrea V, demand overwhelming.

for retail too?

 

[yongsaver]

for retail too?

nope. they should have issued a retail tranche. final coupon rate is a mouth watering 5.375%. at least more people know what a bank is compared to PE.

 

[dgeralds]

Anybody know why ASTREAVB290620 is not in yahoo finance?

ASTREAVB290620 on SGX. You can look it up under "fixed income"

Trading at 1.039. So you can make immediate profit of 3.9% of your allocation if you decide to sell it back on the market.

 

[moejoseph]

How do i trade if i have a CPD account and iOCBC? Do i need to transfer the bond?

 

[SatkiSasuke]

Just put sell order. Noneed transfer

How do i trade if i have a CPD account and iOCBC? Do i need to transfer the bond?

Sent from the Senior Queen Of EDMW using GAGT

 

[SibehHL]

Do the maths, check the yield and if you think worth it, buy!

I wonder is it advisable to buy another 35 lots from the open market to keep?

Becos Fixed deposit rates are so low.

And I had hit the 200k limit for the SSB alredy

 

[BBCWatcher]

For reference, SBI Singapore is currently (through July 31, 2019) offering 2.05% interest on a 12 month $50,000 fixed deposit. That's a good offer, actually. I think SBI started making that offer a month or two ago, and it's as high as any fixed deposit offer for quite some time.

Astrea notes really aren't directly comparable to fixed deposits. An Astrea V note has almost 5 years to run before its likely (but not guaranteed) call, it has limited trading volume, and it offers absolutely no government guarantee. Bank fixed deposits, in contrast, are insured up to S$75,000 by the SDIC.

If you want something from the bond market that's more similar to a fixed deposit in safety then have a look at Temasek's retail bond maturing on October 25, 2023 (a little over 4 years from now), and that's not going to change (no call/no call variability). According to Bondsupermart.com that particular Temasek 2.7% coupon bond has an asking yield to maturity of 2.159% (as I write this). Temasek is one of the government's sovereign wealth funds, and it's a AAA rated issuer, so I think it's fair to treat it as a government guaranteed bond for all intents and purposes. The bond agencies refer to Temasek proper as a "quasi-sovereign." That bond is a Temasek general obligation bond, backed by the full faith and credit of Temasek -- but not the whole of government. Very hypothetically, if Temasek were to run into unprecedented trouble, it could default on its bonds without the rest of government stepping in to save anybody. Investors and bond rating agencies collectively rate the odds of that happening as extremely low.

There's also CPF, of course, offering 4% interest on MA, SA, and RA subaccounts, possibly more if you qualify for bonus interest.

I find MBH (the Nikko AM Shenton SGX-traded corporate and agency bond fund) to be much, much more appealing than an Astrea note, by the way, if you're looking for something with comparable risk. MBH has much more trading volume, its yield relative to its risk is much more attractive in my view (likely better yield, likely somewhat lower risk), it should have reasonable price stability, and you're not forced to exit at the call date.

 

[SatkiSasuke]

Do the maths, check the yield and if you think worth it, buy!

And understand the risk. SSB and astrea v are two different products

Sent from the real Queen Of EDMW using GAGT

 

[Merg91]

Your 5% of your portfolio?

I already have $200,000 invested in SSB!

 

[SibehHL]

He’s already bought 16 lots (1600 units?) during IPO so I am assuming he knows the risks

And understand the risk. SSB and astrea v are two different products

Sent from the real Queen Of EDMW using GAGT

 

[yongsaver]

I wonder is it advisable to buy another 35 lots from the open market to keep?

Becos Fixed deposit rates are so low.

And I had hit the 200k limit for the SSB alredy

bro. unless u willing to lay bare your financials, it is difficult to say whether a certain instrument is good or bad for you.

 

[yongsaver]

I find MBH (the Nikko AM Shenton SGX-traded corporate and agency bond fund) to be much, much more appealing than an Astrea note, by the way, if you're looking for something with comparable risk. MBH has much more trading volume, its yield relative to its risk is much more attractive in my view (likely better yield, likely somewhat lower risk), it should have reasonable price stability, and you're not forced to exit at the call date.

bro. must consider all sides la. not so straightforward.

bond funds are open ended and behave like bond perpetuals without reset dates. so suddenly if u need the money urgently and depends on when u enter, u may be exiting at a loss.

for bonds with maturity dates. prices go up and down but redeems at par upon maturity. there are people who laddered their bond holdings based on maturity dates. so they are not really 'forced to exit' at call date.

 

[BBCWatcher]

for bonds with maturity dates. prices go up and down but redeems at par upon maturity. there are people who laddered their bond holdings based on maturity dates. so they are not really 'forced to exit' at call date.

Sure they’re forced to exit at call dates. They’re forced to exit each position at its call date/maturity, and they’re forced to exit all positions eventually.

If they’re going to ladder bonds, it’s a heck of a lot easier for a bond fund manager to do it for them, especially here in Singapore where the bond market is quite thin and too “chunky” for all but the extremely wealthy to ladder meaningfully.

 

[5408854088]

Temasek-linked Astrea III PE bonds fully redeemed, with bonus paid

CLASS A-1 notes, offered by Temasek-linked private equity (PE) vehicle Astrea III, have been fully redeemed on Monday.

In addition to the principal amounts of the notes, the noteholders also received a bonus redemption premium of 0.3 per cent of the principal.

https://www.businesstimes.com.sg/ba...a-iii-pe-bonds-fully-redeemed-with-bonus-paid

 

[BBCWatcher]

Compared to Singapore Savings Bond, can we say that this Temasek 2.7% Bond is also extremely safe like the SSB?

It's very, very close to as safe as.

 

[lifeafter41]

For reference, SBI Singapore is currently (through July 31, 2019) offering 2.05% interest on a 12 month $50,000 fixed deposit. That's a good offer, actually. I think SBI started making that offer a month or two ago, and it's as high as any fixed deposit offer for quite some time.

Astrea notes really aren't directly comparable to fixed deposits. An Astrea V note has almost 5 years to run before its likely (but not guaranteed) call, it has limited trading volume, and it offers absolutely no government guarantee. Bank fixed deposits, in contrast, are insured up to S$75,000 by the SDIC.

If you want something from the bond market that's more similar to a fixed deposit in safety then have a look at Temasek's retail bond maturing on October 25, 2023 (a little over 4 years from now), and that's not going to change (no call/no call variability). According to Bondsupermart.com that particular Temasek 2.7% coupon bond has an asking yield to maturity of 2.159% (as I write this). Temasek is one of the government's sovereign wealth funds, and it's a AAA rated issuer, so I think it's fair to treat it as a government guaranteed bond for all intents and purposes. The bond agencies refer to Temasek proper as a "quasi-sovereign." That bond is a Temasek general obligation bond, backed by the full faith and credit of Temasek -- but not the whole of government. Very hypothetically, if Temasek were to run into unprecedented trouble, it could default on its bonds without the rest of government stepping in to save anybody. Investors and bond rating agencies collectively rate the odds of that happening as extremely low.

There's also CPF, of course, offering 4% interest on MA, SA, and RA subaccounts, possibly more if you qualify for bonus interest.

I find MBH (the Nikko AM Shenton SGX-traded corporate and agency bond fund) to be much, much more appealing than an Astrea note, by the way, if you're looking for something with comparable risk. MBH has much more trading volume, its yield relative to its risk is much more attractive in my view (likely better yield, likely somewhat lower risk), it should have reasonable price stability, and you're not forced to exit at the call date.

Is this MBH is the one that can be used for SA shielding?

 

[BBCWatcher]

Is this MBH is the one that can be used for SA shielding?

No, I'm afraid not -- and that's probably OK since MBH is exchange traded and would incur broker commissions to buy then sell. A comparable (i.e. low volatility) CPFIS(SA)-qualified unit trust purchased via a zero fee platform is the best available approach for "SA shielding."