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(18-05-2015, 08:51 PM)InvestArk Wrote: I am a little curious, probably newbie-ish in the FI arena, but are these bonds which FCL issued at any point of time redeemable by the company at market price? or must it be redeemed at par?
Read the prospectus, and investopedia on bonds... it'll be quite informative.
There's a clause for the company to redeem the bonds at a premium from 2019 on-wards they have to redeem the bonds at par in 2022.
However, u may encash the bonds in open market by selling it via CDP... which may be priced below par due to rising interest rate (or above par due to pathetic interest rates in SG).
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(18-05-2015, 10:24 PM)piggo Wrote: (18-05-2015, 08:51 PM)InvestArk Wrote: I am a little curious, probably newbie-ish in the FI arena, but are these bonds which FCL issued at any point of time redeemable by the company at market price? or must it be redeemed at par?
Read the prospectus, and investopedia on bonds... it'll be quite informative.
There's a clause for the company to redeem the bonds at a premium from 2019 on-wards they have to redeem the bonds at par in 2022.
However, u may encash the bonds in open market by selling it via CDP... which may be priced below par due to rising interest rate (or above par due to pathetic interest rates in SG).
Thank you piggo,
What i meant is whether the company can do buying / selling off in the open market on these trade-able bonds it had initially issued. Or are they bounded by a clause which abstains them from doing so until 2019 /2022?
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(18-05-2015, 02:47 PM)Contrarian Wrote: your words are so biased, because you are vested in FCL stocks
I agree with greengiraffe points. His views are rational and logical.
Even if I have cash, I wont buy this bond. Good for the bond issuer. But the best deal is for FCL.
I agree with GG too.
It is time for shorter term bond, amid the interest rate uptrend. A 7-years bond with the interest rate, doesn't seem a good idea to retail investors. A good deal to the Towkay indeed. 
(not vested on FCL, and the bond. Just sharing a general view)
“夏则资皮，冬则资纱，旱则资船，水则资车” - 范蠡
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FCL is so bearish! GG's prediction will come true if FCL has high liquidity or FCL is listed on Nasdaq!
Not vested
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(18-05-2015, 03:36 PM)piggo Wrote: Considering the lack of retail bonds, limited high interest deposits, low property yields (the perennial favorite) and govt bonds @ ~2%; A 3.65% bond looks set to absorb some of the liquidity in the market.
Excluding equity and other more volatile financial instruments, this issue presents reasonably good value for the general mom and pop fund. I'd think given the unique situation of excess liquidity and limited options, unlike overseas bonds, this will probably sell out and even trade above par.
That being said, Frasers may have just discovered a rich vein of cheap financing for future expansion.
It's cheap only if FD rate goes up to ? I think QE and very low FD rate now will see over subscription. By how many time? Me think at least 2 times. Any side bets.
Invest at your own risk.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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The market is awash with cash but not enough entrepreneurs that we can depend on. That's why we have yield issue.
For Saver who cannot go property or equity, there's not much places to invest.
The low bond yield is there because they know chances are they can raise enough.
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(19-05-2015, 10:48 AM)CityFarmer Wrote: (18-05-2015, 02:47 PM)Contrarian Wrote: your words are so biased, because you are vested in FCL stocks
I agree with greengiraffe points. His views are rational and logical.
Even if I have cash, I wont buy this bond. Good for the bond issuer. But the best deal is for FCL.
I agree with GG too.
It is time for shorter term bond, amid the interest rate uptrend. A 7-years bond with the interest rate, doesn't seem a good idea to retail investors. A good deal to the Towkay indeed.
(not vested on FCL, and the bond. Just sharing a general view)
Whether it is IPO, Bond Issue, the deal is crafted by the company. The company will sell at the highest and borrow at the lowest. And they can craft the terms to redeem to their advantage. And for the bond, their conditions is much better than the bank, because the bank has many strict conditions.
The risk for bond issuers is the capital flight to USD and interest rate.
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If you equate risk to volatility then yes, for the same company the stock will always be more risky than the bond.
However, if you compare price to value then you may get a different answer, more so if you have a longer time horizon.
In this sense, I think both parties who say the bond/stock is a better deal are right in their own perspectives. It is like the blind man touching the elephant.
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There is market for everything to fit different risk levels. If you able to hold to the end, this is way better than FD.
Neither do i see the marketed floated with such instruments if the deal is that good for reputable companies.
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Yes, look like i am losing out for IPOed CapmallTrust Bond@ 3.08%for seven years. Actually, i still can come out now before the FD goes to high. Should i? Yes I am tempted to do so.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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