05-03-2012, 10:45 AM
> But i never like perpetual products. i just can't accept the terms of perpectuality.
Perpetual bonds and corporate bonds with term tenure have big difference - they promise to pay bondholders back. So perpetual bonds should give higher premium.
> Perpertuality and Liquidity no relation?
If the company dont promise to pay me back, I got to find a market to sell it. So I need to find a market with liquidity. If the bond issue too small, or no liquidity, mati liao... Similar to property...
Better to buy Starhub with a > 6.5% yield for next 1 year. Can get dividend, can run... hahaha
Perpetual bonds and corporate bonds with term tenure have big difference - they promise to pay bondholders back. So perpetual bonds should give higher premium.
> Perpertuality and Liquidity no relation?
If the company dont promise to pay me back, I got to find a market to sell it. So I need to find a market with liquidity. If the bond issue too small, or no liquidity, mati liao... Similar to property...
Better to buy Starhub with a > 6.5% yield for next 1 year. Can get dividend, can run... hahaha