CapitalMall Trust 3.08%

[thereserved]

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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