CapitalMall Trust 3.08%

(19-02-2014, 07:34 PM)valuebuddies Wrote:

(19-02-2014, 07:31 PM)Investmentrealm Wrote: Is is worth getting this bond at 3.08% when the Reits is giving double?

Of course Bond is considered safer than Stocks and rank higher when company goes bankrupt. That's the only advantage I can think of.

This actually depends on individual risk appetite. My wife put money in FD earns 1%, me put money in bonds earns 3%. Why is it so? Because she is 8 months older than me, old peoples are more conservative

Guess you are right. Different people with different risk appetite. Since my investments are for the long term, I rather double my dividend yields.

(19-02-2014, 07:31 PM)Investmentrealm Wrote: Is is worth getting this bond at 3.08% when the Reits is giving double?

Of course Bond is considered safer than Stocks and rank higher when company goes bankrupt. That's the only advantage I can think of.

High risk high returns, low risk low returns. If you are young its a lot better to go for reits since the yield is higher and u can withstand the volatility. If you are 50 and above looking to retire, bonds are a good way for fixed income and sleeping well at night ^^

(19-02-2014, 08:53 PM)felixleong Wrote:

(19-02-2014, 07:31 PM)Investmentrealm Wrote: Is is worth getting this bond at 3.08% when the Reits is giving double?

Of course Bond is considered safer than Stocks and rank higher when company goes bankrupt. That's the only advantage I can think of.

High risk high returns, low risk low returns. If you are young its a lot better to go for reits since the yield is higher and u can withstand the volatility. If you are 50 and above looking to retire, bonds are a good way for fixed income and sleeping well at night ^^

if the bond and stocks are from the same company, what are the difference in terms of risks? Unless the company goes bankrupt, will there be any difference? And of course you get back your principal after bond matures.. but that's 7 long years.
The only other risk is for the rental yield to drop by 50% and either dividend yield will drop to 3% or price will drop by 50% to maintain 6%. But I don't see rental dropping by 50%.. it didn't even happen during the 2008 crisis.

Public oversubscribed@2.8 times
Private oversubscribed@2.4 times
Should have some coffee money liu.
It seems better than SPH REITS IPO.

i have a question. if market tanked (Black Swan event or similar), what will happen to CMT Reit?
Another words, can we use CMT 7 year@3.08% bond as a parking place for "cash option" to invest during a tanked market.
i think it is too dangerous. Further more FD rates may be more than 2 or 3 %.

(19-02-2014, 10:24 PM)Temperament Wrote: i have a question. if market tanked (Black Swan event or similar), what will happen to CMT Reit?
Another words, can we use CMT 7 year@3.08% bond as a parking place for "cash option" to invest during a tanked market.
i think it is too dangerous. Further more FD rates may be more than 2 or 3 %.

This is what I am doing, smaller fraction in bank account and bond, bigger fraction remain in equity. During tanked market, I don't mind to sell the bonds at 10% loss, and to buy equities that is 20% undervalued and yielding 10% per annum.

EDIT: the question is we don't know when is the tanked market, and we don't know if during tanked market, the bond is still priced above par

(19-02-2014, 08:58 PM)Investmentrealm Wrote:

(19-02-2014, 08:53 PM)felixleong Wrote:

(19-02-2014, 07:31 PM)Investmentrealm Wrote: Is is worth getting this bond at 3.08% when the Reits is giving double?

Of course Bond is considered safer than Stocks and rank higher when company goes bankrupt. That's the only advantage I can think of.

High risk high returns, low risk low returns. If you are young its a lot better to go for reits since the yield is higher and u can withstand the volatility. If you are 50 and above looking to retire, bonds are a good way for fixed income and sleeping well at night ^^

if the bond and stocks are from the same company, what are the difference in terms of risks? Unless the company goes bankrupt, will there be any difference? And of course you get back your principal after bond matures.. but that's 7 long years.
The only other risk is for the rental yield to drop by 50% and either dividend yield will drop to 3% or price will drop by 50% to maintain 6%. But I don't see rental dropping by 50%.. it didn't even happen during the 2008 crisis.

There are many other risks when holding equity, during the GFC capitalmall did a big rights issue, many retail investors got diluted as they didnt have cash to pay for it. As a bond holder there's so much more certainty.

I think an investor feeling bullish on capitalmall can go 80% equity 20% bonds, overall u should get around 5% yield with some growth, pretty decent. If one is really afraid of volatility, how about half in CMT shares and half in 3% bonds, u still get 4.5% yield and a lot less volitility.

(20-02-2014, 09:35 AM)felixleong Wrote:

(19-02-2014, 08:58 PM)Investmentrealm Wrote:

(19-02-2014, 08:53 PM)felixleong Wrote:

(19-02-2014, 07:31 PM)Investmentrealm Wrote: Is is worth getting this bond at 3.08% when the Reits is giving double?

Of course Bond is considered safer than Stocks and rank higher when company goes bankrupt. That's the only advantage I can think of.

High risk high returns, low risk low returns. If you are young its a lot better to go for reits since the yield is higher and u can withstand the volatility. If you are 50 and above looking to retire, bonds are a good way for fixed income and sleeping well at night ^^

if the bond and stocks are from the same company, what are the difference in terms of risks? Unless the company goes bankrupt, will there be any difference? And of course you get back your principal after bond matures.. but that's 7 long years.
The only other risk is for the rental yield to drop by 50% and either dividend yield will drop to 3% or price will drop by 50% to maintain 6%. But I don't see rental dropping by 50%.. it didn't even happen during the 2008 crisis.

There are many other risks when holding equity, during the GFC capitalmall did a big rights issue, many retail investors got diluted as they didnt have cash to pay for it. As a bond holder there's so much more certainty.

Four words for investments or businesses which we must always remember:- "NO MONEY NO TALK" (aka deep pockets or cash flow management).

(19-02-2014, 10:24 PM)Temperament Wrote: i have a question. if market tanked (Black Swan event or similar), what will happen to CMT Reit?
Another words, can we use CMT 7 year@3.08% bond as a parking place for "cash option" to invest during a tanked market.
i think it is too dangerous. Further more FD rates may be more than 2 or 3 %.

If got money ah, instead of 3% bond, I would buy a property and try to rent it out at 3% or more.

If market tanked, will take mortgage and buy stocks.

But like you said... All hinge on having a deep pocket........ which I don't have hahaha