SIA 5-year retail bonds

DukeCS33

Senior Member
Joined
Jul 8, 2018
Messages
2,330
Reaction score
7
still the huge disparity is glaring ... :(

it seems that the Insti Issue is priced at a much tighter credit risk premium than the Retail issue ... what could be the reasons ??

arcan3 mentioned liquidity - a possibility ... if so, it's not good for Retail investors :(

I see now - there is a kink there. I was originally focused on the fact that both bonds are different interms of maturity and coupon but did not drill into the price. There is an obvious kink there and lack of liquidity could be a possible issue. I wonder if banks can mop it up and resell to the insto market. I would do that and a repackaging unless there are very clear rules designating retail bonds as only for retail. If that is the case, lack of liquidity is the obvious answer.
 

churnmaster

Senior Member
Joined
Oct 18, 2018
Messages
1,618
Reaction score
443
I see now - there is a kink there. I was originally focused on the fact that both bonds are different interms of maturity and coupon but did not drill into the price. There is an obvious kink there and lack of liquidity could be a possible issue. I wonder if banks can mop it up and resell to the insto market. I would do that and a repackaging unless there are very clear rules designating retail bonds as only for retail. If that is the case, lack of liquidity is the obvious answer.

Possible opportunity to pick some ?
 

eAtNeAt

High Supremacy Member
Joined
May 21, 2011
Messages
39,963
Reaction score
4,536
Sianz. If temasek take it private what happens to retail bonds?
 

assiak71

Master Member
Joined
May 3, 2018
Messages
4,643
Reaction score
43
Would like to know the possible scenarios too.

Most likely sia will get a credit loan lifeline but if this drags on, even that will be expended.

What happens to retail bond holders?
 

coolmyth

Great Supremacy Member
Joined
Dec 27, 2006
Messages
55,859
Reaction score
9,754
Recent payout just announced. Next one is in Sep.

The question I am asking myself now: Where do you see SIA in 6 months' time? Right question to think? What are your views? :s11:
 

hypertrophy

Master Member
Joined
Jun 6, 2010
Messages
2,810
Reaction score
160
Recent payout just announced. Next one is in Sep.

The question I am asking myself now: Where do you see SIA in 6 months' time? Right question to think? What are your views? :s11:

high chance of bailout..

If you look at their presentation, they have hedged their fuel price until 2025. There will be an enormous margin call.
 

eAtNeAt

High Supremacy Member
Joined
May 21, 2011
Messages
39,963
Reaction score
4,536
high chance of bailout..

If you look at their presentation, they have hedged their fuel price until 2025. There will be an enormous margin call.

Really double whammy. Got cheap oil yet no fly.
Need temasek to pour in cash. Hopefully bondholders are shielded.
 

shallow

Senior Member
Joined
Nov 29, 2012
Messages
1,165
Reaction score
235
Beginner here to learn, how exactly do SIA hedge their oil price? How does it work?
 

hypertrophy

Master Member
Joined
Jun 6, 2010
Messages
2,810
Reaction score
160
Beginner here to learn, how exactly do SIA hedge their oil price? How does it work?

They have locked in most of their future fuel prices at around $60-70 per barrel by buying futures contract in the market.

It will be an excellent strategy if oil price went up. But now at $20+, they effectively overpaid $30-$40 per barrel.
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ Forums. Forum members and moderators are responsible for their own posts. Please refer to our Community Guidelines and Standards and Terms and Conditions for more information.
Top