Mapletree Logistics Trust

[Contrarian]

Very good extrapolation.

Issue of perpetual bonds is damn good deal for the investment bankers and damn good deal for REITs. This kind of deal sure sell in bad times.

Good for REITs
Good for investment bankers & private bankers (still got deals in such slow times, and much much more secure than Lehman)
Not bad yield...

Actually the HK companies are first to this...

To me better to buy starhub...

The last time markets found a similar grail was in an instrument called CDO and its cousin CDS where risk was conveniently dissipated throughout the entire financial system. And people started believing that there is truth to Dire Straits' hit song titled "Money for Nothing"?

Very different lah... Unless the REITs had been able to 'cook' their books like many of those fradulent S-Chips.

What I see happening next is as more REITs start to offer PERPS, we'll start to see a more varied spread of different Interest Rate offered, depending on the REIT quality. As the competition become more intense, either rates offered will go up or some of the REITs will start to open subscription to the non-HNWI market. The non-HNWI market is collectively a bigger market and they can even get away with offering lower rates.

Even during CDO days, it was initially only offered to HNWIs (High Net Worth Individuals) but subsequently, re-packaged and sold to the rest of the 'poorer' individuals. The rates 'enjoyed' by HNWIs was as high as 1-2% higher back then.