CapitaMalls Asia

[RBM]

Kopikat,

You mentioned size of Board Lots for the Hyflux 6.0% p.a. Cum Preference Share and DBS 4.7% p.a. Non Cum Bond. To my knowledge, for the retail listings mentioned the size of the lots is as follows............
- 100 units for the DBS Bond, meaning one lot is currently worth about S$ 10,700-
- 10 units for the Hyflux Preference Share, meaning one lot is currently worth about S$ 1,059-

I do not see this as unreasonably sized. I'm probably missing something so forgive me if I am.

Both of these investments have so far served me well, this during a time of market turbulence. I want a solid return I can rely upon.

RBM

[tanjm]

Hello tanjm,

GLP and Cheung Kong did not have a retail tranche for their recently issued S$ bonds. I understand the GLP 5.5% paper has traded well above parity since it commenced trading and the last done price for Cheung Kong 5.1/8% was S$ 100.775. I have not found a problem trading the three Singapore Bonds/Preference shares I mentioned, even Cheung Kong which is indeed OTC traded (I have both bought and sold units). In fact, the value of daily trades in DBS and Hyflux preference shares is higher than the daily traded value of many of the equities we discuss on VB's - and I'm not just referring to the tiny market caps.

I intend going in for more Cheung Kong 5.1/8% soon - I personally like the combination of coupon, credit worthiness and current price etc. and IMHO this is by some margin superior to the CMA offering.

As I understand it, while the DBS 4.7% Bond does not guarantee payment of its coupon-dividend - the mother-stock can not pay dividends if they don't pay the Bond coupon out. That gives me some comfort.

One other factor in my thinking regarding the three I mentioned and the GLP issue is that they were larger offerings than CMA's - I am not sure if this will be a factor vis-a-vis liquidity.

Just my (further) two cents.

RBM

Hi RMB,

As an interesting bit of news this morning, Cheung Kong was in today's business times. As an aside, it was mentioned that it has not traded since Dec 12 (how they know this is a mystery since it is OTC traded). It was also stated that Standard and Poors has dropped coverage of the company "due to poor access to management".

I would imagine that if a company wants to issue bonds, they should try to be accessible to credit rating agencies.

I've do not have experience with OTC bond trading before. Do you do yours through a private banking channel, a broker ?

[Contrarian]

This CK bond, will not be redeemed by CK. So there is a discount, because u can only cash it out in the market. So it is different from the other bonds where the company will guarantee to redeem from you

[mrEngineer]

Interestingly, some public sector corporate bonds are giving quite interesting yield - LTA expiry 2016 4.17%.

Those expiring in this year are really amazing Sengkang mall expiry Nov 2012 8.00% yield!

More info can be found ins SGX -> Products -> Fixed Income -> Corporate Bond.

[RBM]

Hello tanjm,

I can 100% assure you that there was a meaningfull trade of Cheung Kong 5.125% p.a. on 30th December 2011 at S$ 100.775. And I have tried to buy more in recent days but offer prices remain stubbornly above S$ 101.50 .......... and I'm being a mean git refusing to go above S$ 101.00!! I am unsure if there were trades last week.

Answering your question ...........I go thru a Private Banking channel.

[yeokiwi]

Allocation ratio is out.
Total valid application for Public is $465 million.
CMA up-sizes the tranche from $100 million to $220million.
To be traded on the 13th Jan.

http://info.sgx.com/webcoranncatth.nsf/V...200364C09/$file/eNewsRelease_CloseOfOffer20120111.pdf?openelement

[Musicwhiz]

Allocation ratio is out.
Total valid application for Public is $465 million.
CMA up-sizes the tranche from $100 million to $220million.
To be traded on the 13th Jan.

Wow, the public is extremely hungry for yield, apparently. But there are good blue chips out there yielding 4-5%, why choose CMA bond yielding 3.8%? Of course, one thing to note is that in terms of liquidation, corporate bondholders come before shareholders in terms of payout.

[yeokiwi]

Wow, the public is extremely hungry for yield, apparently. But there are good blue chips out there yielding 4-5%, why choose CMA bond yielding 3.8%? Of course, one thing to note is that in terms of liquidation, corporate bondholders come before shareholders in terms of payout.

Well, as compared with bank interest rate and gov bonds, it is so much higher.
No fish prawn also can.

[RBM]

............. and I'll bet other companies - not just financials - start seriously looking at Preference Shares and Bonds as a way of raising cash. The PS/Bond issues of Hyflux 6% p.a., DBS 4.7% p.a., Cheung Kong 5.125% p.a. (OTC), GLP 5.5% p.a. (OTC) and now CMA 3.8% p.a. were all healthily oversubscribed .......... and the latter three raisings were made after the August 2011 market drop.

RBM
Vested in Hyflux 6%, DBS 4.7% and Cheung Kong 5.1/8%

[KopiKat]

Wow, the public is extremely hungry for yield, apparently. But there are good blue chips out there yielding 4-5%, why choose CMA bond yielding 3.8%? Of course, one thing to note is that in terms of liquidation, corporate bondholders come before shareholders in terms of payout.

Well, as compared with bank interest rate and gov bonds, it is so much higher.
No fish prawn also can.

I do know of quite a few close acquaintances who are too busy / fearful to invest in stocks. So, a 3.8% CMA Bond or DBS 4.5% Pref Shares is like a god-send (not prawn) to them. Ya, they are aware of the risks but have given their blind faith to Temasek-linked Corporate Bonds / Pref Shares.

Sorry (to Hyflux fans), not Hyflux though...