CapitalMall Trust 3.08%

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#41
It all depends on the amount of capital and how much you are allocated successfully after ATM.
1% stag is a lot if you are allocated 1000 lots. Overnight $10,000 coffee money. Even with 100 lots overnight $1000 is quite a lot of coffee money. But i suspect liquidity problem(low volume of trading after IPO) So difficult to stag.
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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#42
HuhDoes anyone know if the interest payments are taxable? IRAS website is confusing.
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#43
I do not advocate applying for the retail bonds. Corporations are taking advantage of the low I/r environment to lock in low servicing of their debts. People will only subscribe to this simply because "it is better than FD", which is what they only know (besides insurance) in their sphere of investment knowledge.

For investors, equity is advised.
For ppl in their 55s, it is better by contributing towards their CPF acc to realise tax deductions and the 4% interest the SA/RA provides.
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#44
(16-02-2014, 02:18 PM)CY09 Wrote: I do not advocate applying for the retail bonds. Corporations are taking advantage of the low I/r environment to lock in low servicing of their debts. People will only subscribe to this simply because "it is better than FD", which is what they only know (besides insurance) in their sphere of investment knowledge.

For investors, equity is advised.
For ppl in their 55s, it is better by contributing towards their CPF acc to realise tax deductions and the 4% interest the SA/RA provides.
That's why i think only for stags for coffee money. But liquidity may be a problem if allocated too much.
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.
Reply
#45
(16-02-2014, 01:01 PM)Porkbelly Wrote: HuhDoes anyone know if the interest payments are taxable? IRAS website is confusing.

dun think so
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#46
(16-02-2014, 02:18 PM)CY09 Wrote: I do not advocate applying for the retail bonds. Corporations are taking advantage of the low I/r environment to lock in low servicing of their debts. People will only subscribe to this simply because "it is better than FD", which is what they only know (besides insurance) in their sphere of investment knowledge.

I fully agree with this.
Why would people with the right mind want to part with their hard-earned money for a long 7-year period and get such a low fixed return of only 3.08% p.a. in interests throughout the entire period?! I am sure not many banks would do it even at 5.00% p.a., as a 7-year bullet term loan (i.e. full repayment of the principal amount is only due at the end of Year 7 in one lump sum!) is very much like taking an equity risk on CapitaMall Trust.
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#47
How much % would u want in order for it to be attractive? 5%? 7%? 9%?
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#48
Surely many feels 3% is low so what % is fair or attractive? If u want high yield what about olam 6.75%?
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#49
(16-02-2014, 05:32 PM)felixleong Wrote: Surely many feels 3% is low so what % is fair or attractive? If u want high yield what about olam 6.75%?

I think you may have to rephrase: Its that Many (in VB) feels 3% is low. My talks with the "common ppl" (aka those who believe investment products you get from your neighbourhood branches are one of the best deals); to them these 3.08% bond seems like it is an alright investment since it has "capita" as issuer and 3.08% to them is ok since FD is only 1.2% pa.

People are trapped by their own sphere of reality. To many, an average 6% return p.a. seems to be an illusion when the products they are offered are capable of providing them only a "reported 4.75% p.a." return. However to us in VB, an average 6% return p.a. is a reality. Thus the relative comparison differs; most VB members have a different expected rate of return vs "the common man in the street".

Not trying to be elitist in this post. Just highlighting the financial ignorance of the majority
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#50
i think 3.08% is not too bad for man-in-street. Most probably it will be oversubscribed by 1.5 - 2.0 times. Yet i think liquidity is a problem.

i think it will be better to buy CAPMALL TRUST and hold for 7 years. Most probably you will get more in the Reit's DPU rather then 3.08%*7. And within these 7 years, you may sell if capital gain is large enough during a Bull markets. IMHO.
But i am not buying the Reit now.
Not vested
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.
Reply


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