Oxley Holdings

[CityFarmer]

i think if i am going to buy a corporate bond, i will first think will i buy it's share?
If i will then why i buy it's bond and not share?
There must be some good reasons, ya?
Anyone like to share?

It is about risk-reward, right?

Bond has capital protection, but lack of growth participation, while equity is the reverse. There are many reason not to buy the equity, not only on poor quality. Price tag is always a major concern.

(sharing few random thoughts)

[Porkbelly]

Bonds is a loan to the company ( though the terms are always in their favour)and they will pay the interest as agreed. Payment comes from their cash flows or asset sales... and they will try their best to pay up, otherwise they will face tremendous difficulties in borrowing money from any source. This is sucide for any business.

Shares is owning part of the company, and there may or may not be dividends or capital appreciation. The company may make lots of profits but may not declare any dividends. But they will have to pay off their loans... such as bonds.

Buying shares AND bonds from the same company in my view may pose a higher risk. The purpose of either is very different... and both ( as in all investment decisions ) carries its own risk profiles.

Simplistically, there is a higher chance of your capital sum being returned from buying bonds.
Lets not bring inflation into the equation for short term bonds ( less than 4 years )

As for Oxley, my personal view is that its debt is very high.. ( almost similar to Swiber ). How they intend to service interest payments is difficult to determine. Although their assets are in properties, their value is based on market value.. which is often over the top... for the purpose of looking good.

To get a bank loan using your home ( or 2nd home ) as collateral, it will be advantages to have it valued as high as you can... no?

[valuebuddies]

hit and run for kopi money

[valuebuddies]

i think if i am going to buy a corporate bond, i will first think will i buy it's share?
If i will then why i buy it's bond and not share?
There must be some good reasons, ya?
Anyone like to share?

It is about risk-reward, right?

Bond has capital protection, but lack of growth participation, while equity is the reverse. There are many reason not to buy the equity, not only on poor quality. Price tag is always a major concern.

(sharing few random thoughts)

Do you mean that if I put my savings with UOB bank, then I must well buy UOB shares? Price tag for shares is not really a big problem with the 100 lot size.

[CityFarmer]

i think if i am going to buy a corporate bond, i will first think will i buy it's share?
If i will then why i buy it's bond and not share?
There must be some good reasons, ya?
Anyone like to share?

It is about risk-reward, right?

Bond has capital protection, but lack of growth participation, while equity is the reverse. There are many reason not to buy the equity, not only on poor quality. Price tag is always a major concern.

(sharing few random thoughts)

Do you mean that if I put my savings with UOB bank, then I must well buy UOB shares? Price tag for shares is not really a big problem with the 100 lot size.

The price-tag, is value-for-money. A $20 per share of UOB, is more value-for-money than 0.3 cents per share of Blumont, IMO.

[valuebuddies]

i think if i am going to buy a corporate bond, i will first think will i buy it's share?
If i will then why i buy it's bond and not share?
There must be some good reasons, ya?
Anyone like to share?

It is about risk-reward, right?

Bond has capital protection, but lack of growth participation, while equity is the reverse. There are many reason not to buy the equity, not only on poor quality. Price tag is always a major concern.

(sharing few random thoughts)

Do you mean that if I put my savings with UOB bank, then I must well buy UOB shares? Price tag for shares is not really a big problem with the 100 lot size.

The price-tag, is value-for-money. A $20 per share of UOB, is more value-for-money than 0.3 cents per share of Blumont, IMO.

Isn't it generally perceive that if you buy something first hand, it is usually value-for-money?

[Temperament]

i think if i am going to buy a corporate bond, i will first think will i buy it's share?
If i will then why i buy it's bond and not share?
There must be some good reasons, ya?
Anyone like to share?

It is about risk-reward, right?

Bond has capital protection, but lack of growth participation, while equity is the reverse. There are many reason not to buy the equity, not only on poor quality. Price tag is always a major concern.

(sharing few random thoughts)

Do you mean that if I put my savings with UOB bank, then I must well buy UOB shares? Price tag for shares is not really a big problem with the 100 lot size.

The price-tag, is value-for-money. A $20 per share of UOB, is more value-for-money than 0.3 cents per share of Blumont, IMO.

Isn't it generally perceive that if you buy something first hand, it is usually value-for-money?

Value for money in investment is always true.
Look like people who practise frugality daily is already one-up on spendthrift for investing.

[CityFarmer]

The 4 years, 5% corporate bond is selling like a hot cake...

Oxley raises retail bond issue size on strong demand
06 Nov 2015 09:00
By Wong Siew Ying

Developer Oxley Holdings has received such "overwhelming demand" for its retail bonds that it has more than doubled the total issue size.

The company had announced an initial offer of $125 million of the four-year retail bonds, which will pay a fixed rate of 5 per cent a year, but applications far exceeded that amount.

By the time the offer closed at noon on Tuesday, applications totalled about $349 million from the public and a further $100 million from the placement segment, giving it an overall subscription rate of 3.6 times.

The "overwhelming" response has prompted Oxley to raise the total issue size to $300 million - $225 million to the public offer and $75 million under the placement tranche.

Oxley executive chairman and chief executive Ching Chiat Kwong said yesterday: "The overwhelming interest ... is a clear indication of investors' growing appreciation for retail bonds."
...
Source: Straits Times

[Shrivathsa]

http://www.theedgeproperty.com.sg/sg/con...takes-game

A good read on the Oxley high stakes gamble which seems to be paying off.

Guess the loyal shareholders will benefit from a strong run up from next year

[Behappyalways]

From TheEdge Magazine June 6 Issue


On the other hand, Oxley says unbilled revenue of $3.2billion. Of this, $1.4billion is from its Singapore projects, and $1.8billion from its overseas projects including Royal Wharf in London, with unbilled revenue of $2.05billion, are due to be completed in the next 12 months, according to Oxley.


(Did the company hedge? What happens if company did not hedge and British pound depreciates significantly against Singapore Dollar?)

Not vested.