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21-08-2015, 10:31 PM
(This post was last modified: 21-08-2015, 10:35 PM by greengiraffe.)
http://www.valuebuddies.com/thread-3308-...#pid104374
Junk bond crisis is brewing in Singapore...
There is no doubts about it.
We haven't had junk bond crisis in Singapore ever. However, given the aggressive iintermediation by local banks as originator of corporate debts and the aggressive appetite especially amongst high net worth individuals, aka private banking clients, due to persistently low borrowing rates tied to sibor, there are so many that has leverage up to enhance yields on the corporate bonds that were targeted at them (denomination typically around S$250k and above).
Although compiling the database takes quite a bit of effort (via SGX announcements), it is quite clear that Tom, Dick, Harry, Ah Beng, Seng and Lians have made a beeline to tap the pool when the window was opened until earlier this year.
Even though we saw a rare FCL 3.65% retail tranche and the latest Aspial 5.25%, I deemed a sign that corporates no longer have easy assess to the swift placement of debt papers via the high net worth channel. Hence, they have to take the trouble to reach out to the relatively virgin retail segment.
The signs are there and the threat is real. No price for guessing but roadside sources said that there are no longer bids for several O&G highly leveraged companies with abundant series of normal debts and perpetual papers.
Hopefully, the delay in levelling the playing field between the high net worth and retail players have helped saved some innocent retail $ but for sure there are many hurt net worth individuals.
Alarmed and Worried
GG
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I told u so many moons ago:
Double or possibly triple whammy. .. rate rise is the main one... lack of suckers following washing out in recent months as investors turned cautious and smarter is the other and lastly originating investment bankers will oso tightened the screens to bring better quality is another major factor.
Competing SSB will oso sharpen competition. Lastly slowly economy plus wealth erosion will reduce liquidity. .. investors are no free $ printing machine
http://www.straitstimes.com/business/companies-markets/corporate-bond-market-here-may-face-headwinds?xtor=CS3-17
[img=100x52]filesystem:chrome-extension://clhhggbfdinjmjhajaheehoeibfljjno/temporary/812340975_43759_3477709970786491421.jpg[/img]
The Straits Times
Corporate bond market here may face headwinds, Companies & Markets News & Top Stories - The Straits Times
Companies & Markets News -The Singapore corporate bond market could face some pain over the next year, as rising interest rates and weak investor sentiment take a toll on firms here.. Read more at straitstimes.com.
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Not when the music keeps going.
The Fed sticking to the status quo.
Recent bond issue fron Perenial indicates that the fat stubbornly refuses to burn off.
There is plenty of cash floating around.
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(17-10-2015, 10:13 AM)Porkbelly Wrote: Not when the music keeps going.
The Fed sticking to the status quo.
Recent bond issue fron Perenial indicates that the fat stubbornly refuses to burn off.
There is plenty of cash floating around.
Retail guys yet to see the truth... the high net worth individuals have already bear some brunts... like I previously said retail guys are the last in the line of the food chains so caveat emptor...
No vested interests
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> Retail guys yet to see the truth... the high net worth individuals have already bear some brunts... like I previously said retail guys are the last in the line of the food chains so caveat emptor...
Bro, some retail investors won't listen. They trust company more than trust "non financial experts". There will always be some of them around. Let's hope for a vibrant bond market :-)
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(18-10-2015, 12:27 PM)Contrarian Wrote: > Retail guys yet to see the truth... the high net worth individuals have already bear some brunts... like I previously said retail guys are the last in the line of the food chains so caveat emptor...
Bro, some retail investors won't listen. They trust company more than trust "non financial experts". There will always be some of them around. Let's hope for a vibrant bond market :-)
No worries that is what makes a market a beautiful place...
otherwise there won't be opportunities and expert advice that is always relevant on hindsight...
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Perennial 3 year short term bond, good CEO, strong backers, not so much risk I would say.
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(21-08-2015, 10:31 PM)greengiraffe Wrote: http://www.valuebuddies.com/thread-3308-...#pid104374
Junk bond crisis is brewing in Singapore...
There is no doubts about it.
We haven't had junk bond crisis in Singapore ever. However, given the aggressive iintermediation by local banks as originator of corporate debts and the aggressive appetite especially amongst high net worth individuals, aka private banking clients, due to persistently low borrowing rates tied to sibor, there are so many that has leverage up to enhance yields on the corporate bonds that were targeted at them (denomination typically around S$250k and above).
Although compiling the database takes quite a bit of effort (via SGX announcements), it is quite clear that Tom, Dick, Harry, Ah Beng, Seng and Lians have made a beeline to tap the pool when the window was opened until earlier this year.
Even though we saw a rare FCL 3.65% retail tranche and the latest Aspial 5.25%, I deemed a sign that corporates no longer have easy assess to the swift placement of debt papers via the high net worth channel. Hence, they have to take the trouble to reach out to the relatively virgin retail segment.
The signs are there and the threat is real. No price for guessing but roadside sources said that there are no longer bids for several O&G highly leveraged companies with abundant series of normal debts and perpetual papers.
Hopefully, the delay in levelling the playing field between the high net worth and retail players have helped saved some innocent retail $ but for sure there are many hurt net worth individuals.
Alarmed and Worried
GG
GG got any high net worth individuals got hurt?
Any bonds of local companies of late go bust can share.
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(19-10-2015, 09:37 PM)Stephen Wrote: (21-08-2015, 10:31 PM)greengiraffe Wrote: http://www.valuebuddies.com/thread-3308-...#pid104374
Junk bond crisis is brewing in Singapore...
There is no doubts about it.
We haven't had junk bond crisis in Singapore ever. However, given the aggressive iintermediation by local banks as originator of corporate debts and the aggressive appetite especially amongst high net worth individuals, aka private banking clients, due to persistently low borrowing rates tied to sibor, there are so many that has leverage up to enhance yields on the corporate bonds that were targeted at them (denomination typically around S$250k and above).
Although compiling the database takes quite a bit of effort (via SGX announcements), it is quite clear that Tom, Dick, Harry, Ah Beng, Seng and Lians have made a beeline to tap the pool when the window was opened until earlier this year.
Even though we saw a rare FCL 3.65% retail tranche and the latest Aspial 5.25%, I deemed a sign that corporates no longer have easy assess to the swift placement of debt papers via the high net worth channel. Hence, they have to take the trouble to reach out to the relatively virgin retail segment.
The signs are there and the threat is real. No price for guessing but roadside sources said that there are no longer bids for several O&G highly leveraged companies with abundant series of normal debts and perpetual papers.
Hopefully, the delay in levelling the playing field between the high net worth and retail players have helped saved some innocent retail $ but for sure there are many hurt net worth individuals.
Alarmed and Worried
GG
GG got any high net worth individuals got hurt?
Any bonds of local companies of late go bust can share.
Dunno details but heard quite a fair bit of forced selling during the volatile period and quite a number of bankers turn Green Hulks
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(19-10-2015, 09:37 PM)Stephen Wrote: (21-08-2015, 10:31 PM)greengiraffe Wrote: http://www.valuebuddies.com/thread-3308-...#pid104374
Junk bond crisis is brewing in Singapore...
There is no doubts about it.
We haven't had junk bond crisis in Singapore ever. However, given the aggressive iintermediation by local banks as originator of corporate debts and the aggressive appetite especially amongst high net worth individuals, aka private banking clients, due to persistently low borrowing rates tied to sibor, there are so many that has leverage up to enhance yields on the corporate bonds that were targeted at them (denomination typically around S$250k and above).
Although compiling the database takes quite a bit of effort (via SGX announcements), it is quite clear that Tom, Dick, Harry, Ah Beng, Seng and Lians have made a beeline to tap the pool when the window was opened until earlier this year.
Even though we saw a rare FCL 3.65% retail tranche and the latest Aspial 5.25%, I deemed a sign that corporates no longer have easy assess to the swift placement of debt papers via the high net worth channel. Hence, they have to take the trouble to reach out to the relatively virgin retail segment.
The signs are there and the threat is real. No price for guessing but roadside sources said that there are no longer bids for several O&G highly leveraged companies with abundant series of normal debts and perpetual papers.
Hopefully, the delay in levelling the playing field between the high net worth and retail players have helped saved some innocent retail $ but for sure there are many hurt net worth individuals.
Alarmed and Worried
GG
GG got any high net worth individuals got hurt?
Any bonds of local companies of late go bust can share. 4.65% is I think safer than punting those land bank gold backbuy deals. Transparency is there. Not difficult to play
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