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(20-02-2014, 11:26 AM)momoeagle Wrote: (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 Ha! Ha!
You and your reverse psychology. Reverse psychology is very powerful one.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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(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.
Many other Reits also got into trouble because they are unable to refinance their loan with banks and hence have to raise money from equity. Even Capitaland did a rights issue to raise money.
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(20-02-2014, 01:38 PM)Investmentrealm Wrote: (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.
Many other Reits also got into trouble because they are unable to refinance their loan with banks and hence have to raise money from equity. Even Capitaland did a rights issue to raise money. Yes! Here was and is for people who have deep pockets or reserve their cash as perpetual option that dare to subscribe to the rights issue, will benefit.
Please, no 100% hoh!
It is always "Caveat Emptor"
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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$1.007, how to stag? lol
anyway seems that the demand is pretty decent, as like other listed bonds, they are all trading above par value
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21-02-2014, 08:47 PM
(This post was last modified: 21-02-2014, 08:54 PM by Temperament.)
(21-02-2014, 03:29 PM)felixleong Wrote: $1.007, how to stag? lol
anyway seems that the demand is pretty decent, as like other listed bonds, they are all trading above par value Agree.
Read my post Posts: 2,362.
For me definitely can "Stag" (Er...modified stag) come 1st coupon payment in August; provided FD is still 1% p/a.
Pardon me for using stag in my own terms.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Posts: 2,808
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1
is the brokerage commission rate/fee for retail bond the same as that for shares?
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(21-02-2014, 09:47 PM)pianist Wrote: is the brokerage commission rate/fee for retail bond the same as that for shares?
Yup, closing price 1.006 means I got $36 profit, less the broker fee which is about $30 + $2 ATM fee. I still got $4!  This equals to 4 cup of coffee at S11, but not enough to have 1 at Starbuck.
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(21-02-2014, 10:16 PM)valuebuddies Wrote: (21-02-2014, 09:47 PM)pianist Wrote: is the brokerage commission rate/fee for retail bond the same as that for shares?
Yup, closing price 1.006 means I got $36 profit, less the broker fee which is about $30 + $2 ATM fee. I still got $4! This equals to 4 cup of coffee at S11, but not enough to have 1 at Starbuck. Pleass don't belittle profit of .006. Imagine multiply by 100,000 =$600.
And that's a lot of coffee money if you can pull it off before the 1st coupon payment in August this year. Before then, most probably you can do better. Or perhaps you have better idea. Then share lol!
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
Posts: 9
Threads: 0
Joined: Feb 2014
Reputation:
0
(20-02-2014, 01:38 PM)Investmentrealm Wrote: (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.
Many other Reits also got into trouble because they are unable to refinance their loan with banks and hence have to raise money from equity. Even Capitaland did a rights issue to raise money.
Which reits?
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22-02-2014, 11:10 AM
(This post was last modified: 22-02-2014, 11:27 AM by pianist.)
(21-02-2014, 10:16 PM)valuebuddies Wrote: (21-02-2014, 09:47 PM)pianist Wrote: is the brokerage commission rate/fee for retail bond the same as that for shares? Yup, closing price 1.006 means I got $36 profit, less the broker fee which is about $30 + $2 ATM fee. I still got $4! This equals to 4 cup of coffee at S11, but not enough to have 1 at Starbuck. so that is based on yr 6 lots allocated..
for me, if I have 6 lots allocated, my broker fee is about $17+$2 atm, I still got $17 to chiak kopi, enough to have 2 cups at starbuck
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