Perennial fixed return 3 year bond 4.65%

[Kelvin]

Given the short tenor and reasonable yield it seems attractive.
Can apply thru ATM, min 2k

[SincereKen]

Indeed, the bond can be appiled thru atm & quite attractive. One may hedge Fed's Interest rate issue against Perennial's bond - same asset class but different value play.

It too acts as cushion against reit's impending decline. 3-year bond is short; 2K for private & 250K for accredited bond investors.

[valuebuddies]

Yes, good way to park excess fund while waiting for market slump

[opmi]

Yes, good way to park excess fund while waiting for market slump

what if market slump comes in 1.5 years' time and market wants high premium to buy/dont want to buy from you?

[butcher]

Indeed, the bond can be appiled thru atm & quite attractive. One may hedge Fed's Interest rate issue against Perennial's bond - same asset class but different value play.

It too acts as cushion against reit's impending decline. 3-year bond is short; 2K for private & 250K for accredited bond investors.

Hi SincereKen, 

I am also interested in the bonds.  

By the way, how are US Fed interest hedged against the bond?

[valuebuddies]

Yes, good way to park excess fund while waiting for market slump

what if market slump comes in 1.5 years' time and market wants high premium to buy/dont want to buy from you?

trimming small loss is inevitable to capture big gain, that's why I am aiming to only low risk and small beta investments now.

[greengiraffe]

The other way to look at this issue:

If it is so good, they won't bother to reach out to retail guys... 250k high net worth easier and faster...

3 yrs 4.65% most likely resemble that of junk debts...

FCL equities now offer 5.46% historical yield with plenty of asset unlocking on the way and yet noone is interested...

No Interests In Prison Income 
GG

[SincereKen]

Indeed, the bond can be appiled thru atm & quite attractive. One may hedge Fed's Interest rate issue against Perennial's bond - same asset class but different value play.

It too acts as cushion against reit's impending decline. 3-year bond is short; 2K for private & 250K for accredited bond investors.

Hi SincereKen, 

I am also interested in the bonds.  

By the way, how are US Fed interest hedged against the bond?

Hi Butcher,

Perennial invested in Real Estate & US Fed interest raise may cost Singapore's Interest Rate (Pegged to US Interest Rate) to rise. The spillover effect is that interest expense/payable from (Leveraged/Gearing) Loan to increase. Reit investors may too find new opportunities instead of this stock.
2 (Direct) Negative Impacts; Potential Reduction in Earnings per share & Decline in Stock/Reit price.

If reit investors still find fundamentals strong, why not lock-in a 3-year bond - a form of corporate loan - to hedge against the aforementioned factors. Bond payment provides fixed coupon rates & maturity par value at the end.

Hope this helps.

Warm Regards.

Disclaimer: DYDD & Above is my opinions, not to be constituted as advice.

[weijian]

Yes, good way to park excess fund while waiting for market slump

what if market slump comes in 1.5 years' time and market wants high premium to buy/dont want to buy from you?

trimming small loss is inevitable to capture big gain, that's why I am aiming to only low risk and small beta investments now.

There is actually a reason why WB only park his elephant gun in US short term Treasuries, rather than high grade corporate bonds. He has experienced and knows that in a crisis, all correlations go to 1. Only the one with the biggest guns is truly THE only high grade option.

[valuebuddies]

Yes, good way to park excess fund while waiting for market slump

what if market slump comes in 1.5 years' time and market wants high premium to buy/dont want to buy from you?

trimming small loss is inevitable to capture big gain, that's why I am aiming to only low risk and small beta investments now.

There is actually a reason why WB only park his elephant gun in US short term Treasuries, rather than high grade corporate bonds. He has experienced and knows that in a crisis, all correlations go to 1. Only the one with the biggest guns is truly THE only high grade option.

In Singapore context, if we were to carry out back testing, the correlation is not equal between bonds vs equities vs NCPS. Ofcoz I acknowledge that higher returns means greater risks, that's why I only bringing my monkey gun to field this time, I store my buffalo gun (p/s: I don't have elephant gun though) with a conservative high yield account. In any case, it's a short term that lure my interest.