*Official* corporate bonds thread

[neanea]

Perisher and limster nice try but I wouldn't be replying to you sick dogs or clone now on

 

[Perisher]

Perisher and limster nice try but I wouldn't be replying to you sick dogs or clone now on

eh... please treat people with respect.

I'm actually asking people to answer you with details, not throwing your questions out the window.
I do not know why you are so agitated by that.

 

[neanea]

Ok perisher sorry if I misunderstand your comment. I rest my case with you but not the doggy limster

eh... please treat people with respect.

I'm actually asking people to answer you with details, not throwing your questions out the window.
I do not know why you are so agitated by that.

 

[neanea]

SCG8866T what is your recommendation on which bond to put on watch list for these few months?

 

[SCG8866T]

SCG8866T what is your recommendation on which bond to put on watch list for these few months?

If you dont want to buy otc(min$250k) can look at:

AXXZ
PW3Z
TY6Z

A number of bloggers wrote about them when they were issued. Go study the terms first before posting another question on this. Thanks.

 

[neanea]

I am refering to OTC bonds

If you dont want to buy otc(min$250k) can look at:

AXXZ
PW3Z
TY6Z

A number of bloggers wrote about them when they were issued. Go study the terms first before posting another question on this. Thanks.

 

[SpeedingBullet]

From tradehaven

 

[neanea]

Thanks speedingbullet. I wanted SCG8866T to share his recommendation since he is a broker for bonds

 

[SCG8866T]

Thanks speedingbullet. I wanted SCG8866T to share his recommendation since he is a broker for bonds

There is liquidity issues now for offshore/marine bonds. Bloom berg showing indicative price but when you go to the bond desk to sell, there is no buyers(hence easily stuck). Bank perps still got room to fall. My advice is wait it out first, unless u really got 250k of unused long term funds. I recommend still go with the three i mentioned and nibble small amts. My view only.

No need for ppl to recommend, just know the terms, know the guarantor/issuer and judge for yourself.

I wrote about the basic terms long time ago here: http://scg8866tstockinvesting.blogspot.sg/2013/11/my-take-on-bond-investment.html#.VdbfWGIaySM can read.

If other terms not familar can ask, but do own research first la.

 

[Shiny Things]

There is liquidity issues now for offshore/marine bonds. Bloom berg showing indicative price but when you go to the bond desk to sell, there is no buyers(hence easily stuck). Bank perps still got room to fall. My advice is wait it out first, unless u really got 250k of unused long term funds. I recommend still go with the three i mentioned and nibble small amts. My view only.

By the way, mate: this is absolutely excellent info. Stick around; we need more people like you.

 

[battledome64]

There is liquidity issues now for offshore/marine bonds. Bloom berg showing indicative price but when you go to the bond desk to sell, there is no buyers(hence easily stuck). Bank perps still got room to fall. My advice is wait it out first, unless u really got 250k of unused long term funds. I recommend still go with the three i mentioned and nibble small amts. My view only.

No need for ppl to recommend, just know the terms, know the guarantor/issuer and judge for yourself.

I wrote about the basic terms long time ago here: http://scg8866tstockinvesting.blogspot.sg/2013/11/my-take-on-bond-investment.html#.VdbfWGIaySM can read.

If other terms not familar can ask, but do own research first la.

You are a good broker sir!

 

[stjoe1]

If a company suspends interest payment for its bond and later it resumes the payment, will all the outstanding interest payments paid? Or depends on the bond offer conditions?


I recalled there are different types of interest payment when comes to suspension either cumulative or non-cumulative but not sure if this applies to bond or preference shares or both depend on offer conditions.


Thanks

 

[SCG8866T]

If a company suspends interest payment for its bond and later it resumes the payment, will all the outstanding interest payments paid? Or depends on the bond offer conditions?


I recalled there are different types of interest payment when comes to suspension either cumulative or non-cumulative but not sure if this applies to bond or preference shares or both depend on offer conditions.


Thanks

Cumulative basically means, if the issuer skipped any coupon payment for the year, it will have to be accumulated with interest till a future payment

Non cumulative means, if the issuer skipped any coupon for the year, the rights of the holder to get that coupon is lost(will not be accumulated).

When you see a bond stating that their coupon policy is either cumulative and non cumulative, always make sure they have a dividend stopper policy in place.

Dividend stopper means they are not allowed to pay any junior debt or share of the bond or any other class of securities once a coupon payment is skipped. This is more important.

Most banks perp are non cumulative with a dividend stopper. The effect of the dividend stopper is that it effectively counteracts the discretion and places pressure on the entity to pay the required return on the discretionary instrument.

 

[icicic]

Cumulative basically means, if the issuer skipped any coupon payment for the year, it will have to be accumulated with interest till a future payment

Non cumulative means, if the issuer skipped any coupon for the year, the rights of the holder to get that coupon is lost(will not be accumulated).

When you see a bond stating that their coupon policy is either cumulative and non cumulative, always make sure they have a dividend stopper policy in place.

Dividend stopper means they are not allowed to pay any junior debt or share of the bond or any other class of securities once a coupon payment is skipped. This is more important.

Most banks perp are non cumulative with a dividend stopper. The effect of the dividend stopper is that it effectively counteracts the discretion and places pressure on the entity to pay the required return on the discretionary instrument.

This is only for certain type of subordinated debt.. Unfortunately this is what alot of the sgd market has been issued as recently. For standard senior unsecured mtn issuance, skipping a coupon will trigger an outright default.

Be particularly careful of the small cap companies, those family controlled companies could very well pay themselves high salaries without declaring dividends so the dividend pusher feature doesn't deter them. They will also be happy if the share price tanks (assuming they haven't pledged against their holdings) as it will be cheaper to buy back the company if desired. Sorry to be cynical, just my 2c.

Sent from Sony D6653 using GAGT

 

[vogriphach]

Hi there,

Noob question regarding retail bonds --

1. When I buy via online brokerage,do the prices listed in SGX already take into account accrued interest? If not, how is the accrued interest paid in the online brokerage platform
2. At maturity, the online brokerage will automatically pay back the principal to clients. Is this correct?