[Official] REITs CD tracking thread

[bastogne]

You bought it at low prices many years ago so you're still pretty well off I guess. But wouldn't have it been better to have sell first and realize those big gains then let it erode?

Since you are seem very active and monitor your positions very often, this strategy will suit you better.

I am looking to buy telcos on the cheap, I think there will be a selloff as treasury yields continue to rise:

Example: If I'm a hedge fund manager and treasury yields goes to 4%. Compare this (4% yield, 100% risk-free) against say, Singtel (4.5% yield, various risks like forex, macro, company performance, etc); it's obvious I'll start parking my funds in t-bills instead.

This is not taking into account the higher financing costs associated with rising interest rates which are detrimental for highly geared companies, i.e. REITS

his nick says it all.

 

[Carnesir]

his nick says it all.

Fund investor warrior? Hedging prince? Options queen? Technical indicator knight?

 

[Opps-gal]

hehehe these few months see the same words over and over again:

regret...average down...long term...

funds and institutions gave you 3 months to dump REITs since May announcement but many didn't.

if you still holding on to REITs now you only have yourself to blame. Or you're taking a big, unnecessary risk that Fed won't announce tapering anytime soon. But that's just delaying the inevitable, which is well underway.

not only reits are falling, a lot of other counters (non-reits) also falling. So don't buy anything.

 

[Carnesir]

C'mon guys. Save up already. Get ready for the big CRASH

 

[testing1234]

You bought it at low prices many years ago so you're still pretty well off I guess. But wouldn't have it been better to have sell first and realize those big gains then let it erode?

Since you are seem very active and monitor your positions very often, this strategy will suit you better.

I am looking to buy telcos on the cheap, I think there will be a selloff as treasury yields continue to rise:

Example: If I'm a hedge fund manager and treasury yields goes to 4%. Compare this (4% yield, 100% risk-free) against say, Singtel (4.5% yield, various risks like forex, macro, company performance, etc); it's obvious I'll start parking my funds in t-bills instead.

This is not taking into account the higher financing costs associated with rising interest rates which are detrimental for highly geared companies, i.e. REITS

no offence..but if a fund manager really does that and invest in t-bills, i will redeem my shares and put it in some other funds

nobody likes to pay management and performance fees to fund manager for investing in tbills

 

[mrwonderful]

no offence..but if a fund manager really does that and invest in t-bills, i will redeem my shares and put it in some other funds

nobody likes to pay management and performance fees to fund manager for investing in tbills

of course he won't ever shift from 100% stocks to 100% t-bills, but in wealth management or Investment Banking, you may have heard of the 'pie chart' of diversification. i.e. 25% cash, 25% bonds, 50% stock.

So now as bonds start to come in favour again, these portfolio managers, whether from a bank, hedge fund or whatnot, will start to increase allocation to t-bills and cut exposure to stocks.

and since these guys manage tens or hundreds of billions of dollars, a small percentage shift is readily felt in stock and bond prices.

 

[ad90bc]

of course he won't ever shift from 100% stocks to 100% t-bills, but in wealth management or Investment Banking, you may have heard of the 'pie chart' of diversification. i.e. 25% cash, 25% bonds, 50% stock.

So now as bonds start to come in favour again, these portfolio managers, whether from a bank, hedge fund or whatnot, will start to increase allocation to t-bills and cut exposure to stocks.

and since these guys manage tens or hundreds of billions of dollars, a small percentage shift is readily felt in stock and bond prices.

i dont think so leh. they have to justify if they liquidate and hold cash/risk-free treasuries. will tio gan one if they do so.

 

[lzydata]

Another Mr Market freakout over the TAPER!, but how many people can tell you what exactly is supposed to happen, and what impact it will have?

The Fed may buy maybe $10b or $20b less treasuries every month. Instead of buying $85b a month they will buy $65b or $75b a month. Interest rates will still be almost zero until 2015 or beyond. Borrowing costs have already risen, by a few tenths of a percentage point. They are still low by historical measures.

Why the urgency to tighten is beyond me, since inflation is subdued and actually below target, unemployment remains high, and there is already fiscal tightening, but the gamble is that the US economy is strong enough to take it.

Imagine the shock people will have next month or whenever the Fed curtails their asset purchases and the world does not end. But for myself, I hope they continue to freak out and dump their shares, so I can pick up some good ones

 

[chopra]

. But wouldn't have it been better to have sell first and realize those big gains then let it erode?

if i were DW, i will partial sell.

every milestone STI breach, i will sell x%.

every milestone STI crash, i will buy y%

 

[milky25]

Another Mr Market freakout over the TAPER!, but how many people can tell you what exactly is supposed to happen, and what impact it will have?

The Fed may buy maybe $10b or $20b less treasuries every month. Instead of buying $85b a month they will buy $65b or $75b a month. Interest rates will still be almost zero until 2015 or beyond. Borrowing costs have already risen, by a few tenths of a percentage point. They are still low by historical measures.

Why the urgency to tighten is beyond me, since inflation is subdued and actually below target, unemployment remains high, and there is already fiscal tightening, but the gamble is that the US economy is strong enough to take it.

Imagine the shock people will have next month or whenever the Fed curtails their asset purchases and the world does not end. But for myself, I hope they continue to freak out and dump their shares, so I can pick up some good ones

Hope don't fall further or too much...later I also freakout liao.

 

[boiboi123]

Hope don't fall further or too much...later I also freakout liao.

i'm still waiting out for further falls

 

[Gaara1989]

Cut my fct at 2.03 and suntec at 1.70 few wks after may tapering news and nbr look back

 

[prophetjul]

Another Mr Market freakout over the TAPER!, but how many people can tell you what exactly is supposed to happen, and what impact it will have?

The Fed may buy maybe $10b or $20b less treasuries every month. Instead of buying $85b a month they will buy $65b or $75b a month. Interest rates will still be almost zero until 2015 or beyond. Borrowing costs have already risen, by a few tenths of a percentage point. They are still low by historical measures.

Why the urgency to tighten is beyond me, since inflation is subdued and actually below target, unemployment remains high, and there is already fiscal tightening, but the gamble is that the US economy is strong enough to take it.

Imagine the shock people will have next month or whenever the Fed curtails their asset purchases and the world does not end. But for myself, I hope they continue to freak out and dump their shares, so I can pick up some good ones

Inflation may not be subdued much longer.

Lookie at the 10year Treasury notes yield

 

[Paul Lee]

Quarterly reporting season is almost upon us again!

MCT: 24 Oct 2013 / PM

Gentle reminder: This thread is for result/distribution update. Pls no discussion of REIT in this thread.

For general discussion, pls post at General S-REITs Discussion Thread . Thanks!

 

[Paul Lee]

CCT: 18 Oct AM
CLT: 23 Oct PM

 

[htngwilliam]

Sabana totally no steam. Haha!

 

[Paul Lee]

MLT: 17 Oct PM
Sabana: 17 Oct PM

 

[Dividends Warrior]

MIT: 22 Oct (PM)

 

[Paul Lee]

CRCT: 23 Oct AM
CMT: 23 Oct PM
FCOT:23 Oct PM
First REIT: 25 Oct

Paging for addict, pls update.

 

[Dividends Warrior]

CMT: 23 Oct PM
FCOT:23 Oct PM
First REIT: 25 Oct

Paging for addict, pls update.

Thanks Paul.