CapitalMall Trust 3.08%

[valuebuddies]

By the way, will it be listed or anyway to sell through exchange during the 7-years period?

[felixleong]

yup listed and can be traded like stocks
same as CMA genting perp and sia bonds that are listed

[kichialo]

By the way, will it be listed or anyway to sell through exchange during the 7-years period?

Retail bonds and public tranche are traded via SGX.

[Tiggerbee]

I am not in fixed income investment. I doubt it is rational to lock-in 10 year for bond now with 3.08% interest, with the likelihood of interest hike. A more rational move for bond now should be a stagger strategy with shorter bonds, IMO. May be I have missed key points here?

I think this one is 7 years at 3.08%
Ya... the real risk would be a raise in interest rates
Would be better if investors could buy 3 or 5 years bonds instead

Are the bonds going to be traded on SGX? If we expect interest rates to go up, 3% will not longer be attractive. In another 1-2 years time, SGS bonds will probably fetch more than 3%.

If you're a die hard bond investor, you should look for higher yield corporate bonds to invest. At least 6% or more to beat inflation and risk free rates.

[felixleong]

I am not in fixed income investment. I doubt it is rational to lock-in 10 year for bond now with 3.08% interest, with the likelihood of interest hike. A more rational move for bond now should be a stagger strategy with shorter bonds, IMO. May be I have missed key points here?

I think this one is 7 years at 3.08%
Ya... the real risk would be a raise in interest rates
Would be better if investors could buy 3 or 5 years bonds instead

Are the bonds going to be traded on SGX? If we expect interest rates to go up, 3% will not longer be attractive. In another 1-2 years time, SGS bonds will probably fetch more than 3%.

If you're a die hard bond investor, you should look for higher yield corporate bonds to invest. At least 6% or more to beat inflation and risk free rates.

when holding bonds always got certain risks also, just that the risks can be different from holding equities.

If an investor is worried of an increase in interest rates, he could totally avoid bonds, no problem with that.

I personally do think that rates will go higher, but if I were to buy bonds I will likely to hold it to maturity.

By holding to maturity, you more or less know the kinda returns you will be getting.

https://secure.sgs.gov.sg/fdanet/SgsBenc...rices.aspx

looking at SGS bonds
5 year bonds are yielding 1.4%
10 year bonds are yielding 2.4%

so pricing wise, I think CMT bonds 3% is pretty fair

Olam bonds give over 6.5% but I wouldn't want it even for 10% lol

If you are a peter lynch believer.. then don't touch bonds, just stay 100% vested in equities
If you are a benjamin grahman beliver... go 75% equities and 25% bonds

no right no wrong, just depends on your investing style ^_^

[Temperament]

For me 2.5 % CPFIS's Any Time Bond is good enough. Don't want to buy any other bonds as i am already 65+. But i am getting a little nervous and worried. If Papys can not muster 2/3 majority in this coming 2015/6 GE, is there any "skeletons in the CPF's cupboard"? But then what the heck, almost all Singaporeans are facing the same question. Nevertheless, i wish i can mitigate my "risks" by ?????
Hey what about CPF LIFE annuitants? i am one of them too.
So maybe some Singaporeans may not want to see any major changes in our coming GE due to fearing of the "unknown". The natural human instinct for self preservation. But this instinct may backfired one day.
Ha! Ha! Huh?

[valuebuddies]

Since it will be listed, why do we concerned about 7 years or 10 years when one can exit any time? If I need liquidity, I would sell even making a small loss; but if I do not need liquidity during the next 7 years, I would hold it till maturity or till a price which I am comfortable to sell. My thought is that so long I receive more than what I need to pay for my mortgage, I would go for it.

[felixleong]

sometimes good to have some bonds(say 10-25% of portfolio), in times of bear market equities can trade at a big discount whereas you might be able to sell off your bonds at par value and use the $$$ to purchase cheap blue chips ^_^

[Temperament]

i wonder for people who have spare cash, is this a good opportunity to do an IPO Stag? Pow Chiat or not? Tempted leh?
CPF can buy or not?

[AlphaQuant]

coincidentally suntec reit also issued an mtn due 2020 @ 3.35% today.

http://infopub.sgx.com/Apps?A=COW_Corpor...vi3evmSytY