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28-06-2012, 01:32 PM
(28-06-2012, 12:13 PM)bb88 Wrote:(28-06-2012, 10:25 AM)Temperament Wrote: {Am looking to divest my OCC NCPS in the next 1-2years when the coupon rate gets tied to SIBOR/SOR and let the other 2 run till redemption.}
Can you confirm NCPS & CPS redemption date? i think these have perpetual redemption date at the pleasure of the issuers. Another words if issuers call for redemption the current bank borrowing interest rate will be lower. Can the borrowing rate drop below zero?
They are perpetual, but callable at issuer's discretion come come certain years and on every coupon payout date thereafter.
I'm comfortable with the close to 5% payout and I was willing to them sit for the long term (10yrs and beyond) when I vested. Even if they do not get called, I can either divest through the secondary markets or hold for the next decade when I would have "broken even". I pretty much believe the 3 local banks would still be around then.
I was slightly regretful that I did not become more financially aware otherwise I would have increased my holdings buying from the markets when they were hitting $80-90 during the lehman period. The yield would had been rather nice.
The reason for wanting to divest OCC was that the 5.1% coupon would be changed to SIBOR or SOR + some percentage would I believe would no longer be interesting. Intending to sell 2 coupons dates before that before the price adjusts to match the yield.
If you are happy with your "homework", so be it. Shalom.
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.
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.