Temasek 2.7% 2023 Bonds - worth it?

[stellamara]

5 years short tenor, AAA by temasek itself (not astra etc)

250k vanilla bond - worth to buy?

 

[Knight_Rider]

Thiz

https://www.straitstimes.com/busine...-for-retail-investors-with-planned-offer-of-5

 

[BBCWatcher]

The government is auctioning a ~46 month bond this month that'll probably yield 2.4%, so 2.7% on a Temasek 5 year bond (about 0.3 percentage points more) is attractive enough I'd say, yes. I'm assuming you want a safe, conservative place to park substantial ($250K+) Singapore dollar funds for 5 years. If that's what you need, then it's an attractive vehicle, sure.

You ought to intend to hold this bond to maturity, with high probability. There will be a secondary market for this bond, but it won't be a very liquid one and certainly won't guarantee any particular price for your bond.

On edit: I see the $250K denomination listed for subscription, but I don't see the $1K retail offer listed yet. The $1K retail offer also looks reasonably attractive, but it'll probably be heavily oversubscribed. So if you can afford the $250K denomination, and need a large placement, I'd try for that.

Heads up: You'll need a CDP account if you don't have one already. If you don't have one already, stop by CDP's Buona Vista office right away to get a CDP account opened up.

 

[stellamara]

The government is auctioning a ~46 month bond this month that'll probably yield 2.4%, so 2.7% on a Temasek 5 year bond (about 0.3 percentage points more) is attractive enough I'd say, yes. I'm assuming you want a safe, conservative place to park substantial ($250K+) Singapore dollar funds for 5 years. If that's what you need, then it's an attractive vehicle, sure.

You ought to intend to hold this bond to maturity, with high probability. There will be a secondary market for this bond, but it won't be a very liquid one and certainly won't guarantee any particular price for your bond.

On edit: I see the $250K denomination listed for subscription, but I don't see the $1K retail offer listed yet. The $1K retail offer also looks reasonably attractive, but it'll probably be heavily oversubscribed. So if you can afford the $250K denomination, and need a large placement, I'd try for that.

Heads up: You'll need a CDP account if you don't have one already. If you don't have one already, stop by CDP's Buona Vista office right away to get a CDP account opened up.

thank you, for the retail one, i wonder if its guaranteee issue? and also command the same 2.7% interest?

 

[Tuckie]

Have to see this evening for additional detail?

 

[soneat]

The government is auctioning a ~46 month bond this month that'll probably yield 2.4%, so 2.7% on a Temasek 5 year bond (about 0.3 percentage points more) is attractive enough I'd say, yes. I'm assuming you want a safe, conservative place to park substantial ($250K+) Singapore dollar funds for 5 years. If that's what you need, then it's an attractive vehicle, sure.

You ought to intend to hold this bond to maturity, with high probability. There will be a secondary market for this bond, but it won't be a very liquid one and certainly won't guarantee any particular price for your bond.

On edit: I see the $250K denomination listed for subscription, but I don't see the $1K retail offer listed yet. The $1K retail offer also looks reasonably attractive, but it'll probably be heavily oversubscribed. So if you can afford the $250K denomination, and need a large placement, I'd try for that.

Heads up: You'll need a CDP account if you don't have one already. If you don't have one already, stop by CDP's Buona Vista office right away to get a CDP account opened up.

http://infopub.sgx.com/FileOpen/Tem...llar_bond.ashx?App=Announcement&FileID=529699

The proposed offer includes a placement to institutional, accredited and other specified
investors, and a public offer tranche that will be open to retail investors in Singapore.
The new T2023-S$ Temasek Bond is expected to comprise up to S$400 million in aggregate
principal amount of 5-year guaranteed notes maturing in 2023. If there is over-subscription,
Temasek and the Issuer may upsize the offer up to a maximum of S$500 million.
The T2023-S$ Temasek Bond will be issued in denominations of S$1,000. The issue price of
the T2023-S$ Temasek Bond is intended to be S$1,000.
The T2023-S$ Temasek Bond is intended to be listed on the Singapore Exchange Securities
Trading Limited.
The T2023-S$ Temasek Bond will be unconditionally and irrevocably guaranteed by Temasek.

 

[NewInvestor]

http://infopub.sgx.com/FileOpen/Tem...llar_bond.ashx?App=Announcement&FileID=529699

The proposed offer includes a placement to institutional, accredited and other specified
investors, and a public offer tranche that will be open to retail investors in Singapore.
The new T2023-S$ Temasek Bond is expected to comprise up to S$400 million in aggregate
principal amount of 5-year guaranteed notes maturing in 2023. If there is over-subscription,
Temasek and the Issuer may upsize the offer up to a maximum of S$500 million.
The T2023-S$ Temasek Bond will be issued in denominations of S$1,000. The issue price of
the T2023-S$ Temasek Bond is intended to be S$1,000.
The T2023-S$ Temasek Bond is intended to be listed on the Singapore Exchange Securities
Trading Limited.
The T2023-S$ Temasek Bond will be unconditionally and irrevocably guaranteed by Temasek.

This seems worth subscribing. Better than current CPF OA.

 

[BBCWatcher]

This seems worth subscribing. Better than current CPF OA.

It's reasonably attractive for those who want to park Singapore dollar funds in a rather safe place for 5 years, yes. It'll also be wildly oversubscribed (I expect; "Temasek!"), so you should plan on only being able to get a couple or few thousand dollars worth on the retail side. Accredited investors are also going to have trouble getting big allocations, I expect.

Fairly priced too, it looks like.

 

[Mergui219067]

Very low yield .
Disappointing.

 

[stellamara]

Very low yield .
Disappointing.

so low yield...

 

[stellamara]

so low yield...

any other bonds that can do better than this and at the similar grading?

 

[assiak71]

Higher yield than ssb. Shorter duration. No brainer

 

[BBCWatcher]

Higher yield than ssb. Shorter duration. No brainer

It's not quite a no brainer. These bonds are only appropriate for those who have a high probability of parking Singapore dollars in a rather safe place for 5 years. SSBs are more highly liquid and principal guaranteed at any/every point in time, not only at maturity -- and that's different. SSBs also run for 10 years (if you wish), they have a $100K limit per individual, and for retail investors they're less likely to be as badly oversubscribed (best guess).

There's also a slight difference between Temasek and the government, and that's properly reflected in the slightly higher yield. (Slightly more risk, and thus slightly higher yield.)

 

[final1]

I personally wouldn't bother with these bonds.
My 2 cents.

 

[Knight_Rider]

I personally wouldn't bother with these bonds.
My 2 cents.

But GE ones were sold out in a day

 

[NewInvestor]

I personally wouldn't bother with these bonds.
My 2 cents.

Which bonds would you go for?

 

[Yellowfin]

I guess this bond don't have maximum limit for retail investors. (100 k Max)

 

[LionPlushie]

It's not quite a no brainer. These bonds are only appropriate for those who have a high probability of parking Singapore dollars in a rather safe place for 5 years. SSBs are more highly liquid and principal guaranteed at any/every point in time, not only at maturity -- and that's different. SSBs also run for 10 years (if you wish), they have a $100K limit per individual, and for retail investors they're less likely to be as badly oversubscribed (best guess).

There's also a slight difference between Temasek and the government, and that's properly reflected in the slightly higher yield. (Slightly more risk, and thus slightly higher yield.)

does the temasek bond give money after 6 months?

 

[BBCWatcher]

I guess this bond don't have maximum limit for retail investors.

There's a maximum total subscription, and investors must all fit within that limit. "Best guess" is that participating retail investors will each get very modest allocations.

 

[BBCWatcher]

does the temasek bond give money after 6 months?

Yes, this Temasek bond will pay fixed coupons every 6 months. That's only a little different compared to Singapore Savings Bonds, which pay interest (that rises annually over the life of the bond) every 6 months.

The advertised yields do not include the additional potential yield on reinvested coupons/interest, please note.