SIA Bonds

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SIA Bonds

Postby loner » Thu Sep 23, 2010 5:44 pm

Any advice or thoughts on the recent launch of SIA bonds? Wonder is a good investment given the mature date is on 2015....

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Re: SIA Bonds

Postby verykiasu2010 » Thu Sep 23, 2010 8:16 pm

loner wrote:Any advice or thoughts on the recent launch of SIA bonds? Wonder is a good investment given the mature date is on 2015....

2.15% pa is way higher than any FD, and don't think it will go the Merill Lynch way, but is still way below the inflation rate of 3.3% announced today, sigh!
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Re: SIA Bonds

Postby kiasu_pig » Thu Sep 23, 2010 11:08 pm

Minimum sum of $10,000. Yield is not attractive for a 5-year tenor. Would invest in SIA stocks, considering its dividends > 5% and potential capital gain. Will give the bonds a miss.

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Re: SIA Bonds

Postby verykiasu2010 » Fri Sep 24, 2010 12:43 am

kiasu_pig wrote:Minimum sum of $10,000. Yield is not attractive for a 5-year tenor. Would invest in SIA stocks, considering its dividends > 5% and potential capital gain. Will give the bonds a miss.


dividends paid by SIA :

31 Jul 2008 $0.80 & 19 Nov 2008 $0.20 = $1.00

13 Aug 2009 $0.20 & 0.73 SATS share for 1 SIA share

30 Jul 2010$0.12 & Nov 2010 $??

so, it seems at least S$1 of dividend per year, and today's closing price is $16, giving a dividend yield of 6.25%, anytime higher than the 2.15% coupon on the bond

minimum lot size is 200 shares, x $16 = $3200

while the bond's minimum take up is S$10k...

BUT the risk is that the dividend is not guaranteed, while the bond interest is.



http://www.sgx.com/wps/portal/marketpla ... /!ut/p/c5/

04_SB8K8xLLM9MSSzPy8xBz9CP0os3gTn1DXUFNLYwMLtwA3A
yMvZ3Mf09AAA_dAI6B8JE55g2BDSnS7mxHQ7aUflZ6TnwR0pZ9
Hfm6qfkFuaESlo6IiANmLKQA!/dl3/d3/L0lDU0lKSkpDZ3BSQ1NB
ISEvb0VvZ0FFSVFoakZFSUFBak9NNFJrb0lBSVFBIS80QzFiOVdfT
nIwUkprQWxJSWlSLS83X0NHQUg0N0wwMEdJTjcwMk5URzFVU
EUxTzMwL2libS5pbnYvMTQ2NTM2NjA5MDA2/
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Re: SIA Bonds

Postby loner » Fri Sep 24, 2010 8:28 am

Wow! Thanks for all yr input....

Have a great day!
:D

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Postby Trapwithin » Fri Sep 24, 2010 9:23 am

Initially I was thinking about it too.
But I agreed with you guys that the high yielding stock is a better investment though like verykiasu said ...

Dividend is not guaranteed and stock price might swing either way.

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Postby hquek » Fri Sep 24, 2010 9:33 am

Also thinking about the SIA bonds.

My consideration, dividend is not guaranteed and shares may fall. Bonds mature in 2015, but it's going to be traded so bond holder is not locked in. But still I think if I buy any reits (won't need 10k min), I probably can get better yield than 2.15%.

The one from OCBC in the past much better - at least that one was 5.1% (although there is a risk, however slight, that they may not pay)

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