Rickmers Maritime Trust

(04-10-2016, 10:23 AM)corydorus Wrote: Multi-Millionaire blaming gov not protecting him on unrated bond ?

Whats new under the sun? 
When people make money all keep quiet. When they lose money then make hell lot of noise and drag 
everyone into the picture.

Why sh gov help them when they are greedy? Why didn't they choose bonds from SemCorp or Capital Land? Becos they only give 3+% yield instead of 8+? Serves them right for being greedy. Some of them are traders. They sh know the risk.

Yup probably attracted by the high yield... they shld know higher yield higher risk...

(04-10-2016, 09:11 PM)ValueMushroom Wrote: Yup probably attracted by the high yield... they shld know higher yield higher risk...

higher dividend yield higher risk? And equity has higher risk than bond

(05-10-2016, 02:02 AM)donmihaihai Wrote:

(04-10-2016, 09:11 PM)ValueMushroom Wrote: Yup probably attracted by the high yield... they shld know higher yield higher risk...

higher dividend yield higher risk? And equity has higher risk than bond

Same bond class; one is offering 3% coupon payment and the other is offering 8% coupon payment, this usually means the higher yield bond has a higher risk of default.

While there may be fault on investor's part of parataking in the "high yield, high risk" game, I am a bit turned off by how the local financial industry managed to sell these products.

Rickmers bonds looked quite uncertain to be repaid (along with Krisenergy's and Ezra's), but they were still being successfully sold off. Many of these companies are already so distressed that many investors would have avoided them. For banks, they were able to "tap" on their network of private clients to sell it off. It is unfortunate that accredited investors ("private clients") had signed onto papers without looking at every single word on the thick stack of paper. This absolved the local financial industry of its liabilities.

Main reason why I have a high degree of mistrust for the "sales chasing KPI" financial industry.

Quote: It is unfortunate that accredited investors ("private clients") had signed onto papers without looking at every single word on the thick stack of paper.

For 250k a pop, it is certainly a reckless action.
I had not met many RMs. But, for the few that I had met, it is already a risk to entrust your $$$ to their recommendations.
Maybe there are higher class private bankers that are much more savvy. But, looking at the uncle that owns $8 mil of notes, i suppose he already got the Crème de la crème of recommendations and services from the bank.

(05-10-2016, 09:47 AM)yeokiwi Wrote:

Quote: It is unfortunate that accredited investors ("private clients") had signed onto papers without looking at every single word on the thick stack of paper.

For 250k a pop, it is certainly a reckless action.
I had not met many RMs. But, for the few that I had met, it is already a risk to entrust your $$$ to their recommendations.
Maybe there are higher class private bankers that are much more savvy. But, looking at the uncle that owns $8 mil of notes, i suppose he already got the Crème de la crème of recommendations and services from the bank.

My personal experience with one of these RMs.. she convinced my parents to buy a 250k investment in a perp issued by a local property company (luckily its a very solid company). What ticked me off was that she called again after a few months (after the interest had accrued enough to breakeven) to ask them to sell the bond to invest in another one. Obviously she was just doing that to collect her commissions. 

Of course not all RMs are bad, but the selling of these investments need to change in a major way IMO

(05-10-2016, 10:11 AM)grubb Wrote:

(05-10-2016, 09:47 AM)yeokiwi Wrote:

Quote: It is unfortunate that accredited investors ("private clients") had signed onto papers without looking at every single word on the thick stack of paper.

For 250k a pop, it is certainly a reckless action.
I had not met many RMs. But, for the few that I had met, it is already a risk to entrust your $$$ to their recommendations.
Maybe there are higher class private bankers that are much more savvy. But, looking at the uncle that owns $8 mil of notes, i suppose he already got the Crème de la crème of recommendations and services from the bank.

My personal experience with one of these RMs.. she convinced my parents to buy a 250k investment in a perp issued by a local property company (luckily its a very solid company). What ticked me off was that she called again after a few months (after the interest had accrued enough to breakeven) to ask them to sell the bond to invest in another one. Obviously she was just doing that to collect her commissions. 

Of course not all RMs are bad, but the selling of these investments need to change in a major way IMO

Just thinking out loud, will it be better in interest alignment if the commission comes in as the product itself.
Meaning commission of the bond sales will be the bond itself and can not be sold until it expires or your clients sell it.
Same goes for equity or mutual fund.

(05-10-2016, 12:34 PM)ksir Wrote:

(05-10-2016, 10:11 AM)grubb Wrote:

(05-10-2016, 09:47 AM)yeokiwi Wrote:

Quote: It is unfortunate that accredited investors ("private clients") had signed onto papers without looking at every single word on the thick stack of paper.

For 250k a pop, it is certainly a reckless action.
I had not met many RMs. But, for the few that I had met, it is already a risk to entrust your $$$ to their recommendations.
Maybe there are higher class private bankers that are much more savvy. But, looking at the uncle that owns $8 mil of notes, i suppose he already got the Crème de la crème of recommendations and services from the bank.

My personal experience with one of these RMs.. she convinced my parents to buy a 250k investment in a perp issued by a local property company (luckily its a very solid company). What ticked me off was that she called again after a few months (after the interest had accrued enough to breakeven) to ask them to sell the bond to invest in another one. Obviously she was just doing that to collect her commissions. 

Of course not all RMs are bad, but the selling of these investments need to change in a major way IMO

Just thinking out loud, will it be better in interest alignment if the commission comes in as the product itself.
Meaning commission of the bond sales will be the bond itself and can not be sold until it expires or your clients sell it.
Same goes for equity or mutual fund.

Then the RM will persuade u to sell then buy then sell then buy ......