New financial bond

[lausai88]

a lot people buying this bond, peasant me no $ to buy

 

Aspial Corporation

Aspial Corporation's second retail bond offering of four-year, 5.3 per cent bonds had an overall subscription rate of approximately four times the original offer size of $75 million.

 

The public offer of $50 million, which closed on March 30, received $254 million of valid applications, representing a subscription rate of five times the original offer size.

 

 

 

[Limwsv]

Not specific to the Aspial bond that TS is interested in... but one information that does not seems to have been mentioned is that in case liquidation, bondholders rate higher in the hierarchy of claimants to whatever is left of the company funds than stock holders.

 

So, at least it cold comfort that bond holder still get some money back until the pool dries up.

[Throttle2]

a lot people buying this bond, peasant me no $ to buy

Aspial Corporation

Aspial Corporation's second retail bond offering of four-year, 5.3 per cent bonds had an overall subscription rate of approximately four times the original offer size of $75 million.

The public offer of $50 million, which closed on March 30, received $254 million of valid applications, representing a subscription rate of five times the original offer size.

 

See my first post, i was right.

could see it from a mile.

 

They make retail tranche and get heavily oversubscribed.

Then they upsize the issue. I didnt follow so i dont know if they upsize but i am sure they will.

Then Use the money to repay the two bonds coming due in 2016 and 2017.....

 

If they launch insti tranche which is $250k per pop, it wont be heavily oversub.

 

 

Anyway for insti size buyers who want to buy, they will buy the 2019 issue.

Shorter maturity, same yield....no brainer.

[Throttle2]

Not specific to the Aspial bond that TS is interested in... but one information that does not seems to have been mentioned is that in case liquidation, bondholders rate higher in the hierarchy of claimants to whatever is left of the company funds than stock holders.

 

So, at least it cold comfort that bond holder still get some money back until the pool dries up.

Of course.

 

Bondholders are creditors.

Shareholders are equity.

 

In other words shareholders owe money to bondholders.

 

Good wekend folks

[Porker]

Singapore millionaires stung by the misery of recent bond defaults now have company as the fallout threatens losses for mom-and-pop investors.

All four new issues of Singapore dollar-denominated notes targeted at individuals this year have dropped below the par sales value, as failures in the broader market stoke speculation nonpayments will spread. UBS Group AG’s wealth management unit said in an Aug. 16 report that retail investors are being sold "weak" names, and Lombard Odier said they face default risks on securities with poorer credit profiles.

“Now with bonds of small-medium-enterprises with weaker credit profiles being sold to retail investors, this exposes mom-and-pop investors to the risks of a default and bond restructuring,” said Dhiraj Bajaj, senior vice president in Singapore at Lombard Odier.

 

The last time Singapore’s individual investors suffered default was in 2008, when Lehman Brothers Holdings Inc.’s collapse resulted in failure to pay structured notes called mini-bonds, according to Bloomberg-compiled data. Signs of stress are rising as the economy cools. Swiber Holdings Ltd. failed to pay a coupon earlier this month, Pacific Andes Resources Development Ltd. reneged on securities in January and PT Trikomsel Oke missed payments late last year. While none of those incidents involved mom-and-pop investors, they have raised alarms.

Singapore’s regulator is tightening safeguards in the bond market as it encourages broader participation. The focus of the Monetary Authority of Singapore’s "regulatory regime for investor protection, particularly for offers made to retail investors, is two-fold," it said in an e-mailed response to questions. "First, we require issuers to make timely and relevant disclosures so that investors can make informed decisions. Second, we require financial intermediaries that distribute investment products to deal with their customers fairly."

 

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Information disclosure requirements in Singapore are rigorous, and "issuers who offer bonds to retail investors are required to disclose key financial information about the features of the bonds and risks relating to the issuer as well as the bonds," MAS said. "In the case of bonds, investors need to look beyond the headline yield offered and carefully consider the financial performance and strength of the issuer or the credit risk it poses, the risk of interest rate changes that affect the price of a bond and the liquidity of the bond."

 

Maintaining Safeguards

In 2014, the central bank said in response to feedback on a consultation paper that it would proceed with steps to make it easier for companies to offer bonds to individual investors while maintaining sufficient safeguards.

 

The four retail securities sold this year are listed on the Singapore Exchange. They were marketed through offering statements containing prescribed information, and the issuers must announce results and explain significant factors that affect them, according to the bourse.

"Under Singapore’s disclosure-based regime, they are also obliged to make continuous disclosures of any other material information," the exchange said in an e-mailed reply to questions. It published a column in June outlining things retail investors should be aware of when buying bonds.

Economic Headwinds

The local-currency retail note market is expanding just as analysts forecast Singapore’s economy will grow at the slowest pace in seven years in 2016 at 1.8 percent growth.

“I think there is a growing risk of defaults happening with a slowing economy,” said Vishal Goenka, Singapore-based head of credit sales for Asia at Deutsche Bank AG.

Rather than using impartial analysis, investors have bought a lot of notes based on familiarity with the issuer’s name or just because they are from Singapore, according to Bajaj at Lombard Odier, which has been avoiding Singapore dollar bonds.

The 5.3 percent securities of Aspial Corp., a jewelry retailer and developer of high-rise condos, have dropped to 97 cents from about 100 cents at the end of July, according to exchange prices.

A spokeswoman for Aspial declined to comment.

Assessing Exposure

The 6 percent perpetual bonds sold to mom-and-pop investors by water company Hyflux Ltd. have declined to 95.4 cents from about 100 cents as recently as Aug. 12, exchange prices show.

Hyflux’s group chief financial officer Lim Suat Wah said the company has a cash balance of S$494 million as at end June 2016 and also recently completed project finance for two major projects. “There is sufficient cash as well as available lines such that the company does not need to raise additional funds to redeem any maturing facilities,” she said.

Rising risks in Singapore’s bond market were highlighted in the missed payment by Swiber, which operates construction vessels to support the offshore oil and gas industry.

Its default places attention on high-yield securities amid mounting regulatory scrutiny, according to Magdalene Teo, fixed income analyst at Julius Baer.

“While the current low interest rate environment offers some reprieve to companies in terms of lower funding costs, those companies with higher leverage may find it challenging to refinance their upcoming maturities as local banks assess their exposure," said Teo.

[Blueray]

SGX flags risks of 'death spiral' bonds

 

Investors were warned yesterday about risks involved when companies borrow money by issuing "death spiral" convertibles. Such securities came into prominence this week after a bondholder triggered unusual volume movements in the shares of LionGold and Magnus Energy by converting its bonds into shares below market price and then selling them.

 

"We saw a trend of companies issuing such securities and had heard market feedback on concerns about such convertibles," said a spokesman for the Singapore Exchange (SGX) yesterday.

 

SGX chief regulatory officer Tan Boon Gin noted that when a share price is in prolonged decline and "death spiral" convertibles are exercised, existing shareholders are at risk because the bondholder is inclined to sell his shares upon exercise.

 

"Each round of conversion and share sale may drive the share price ever lower, hence the term 'death spiral'," Mr Tan said.

Under existing rules, companies are not allowed to issue convertibles with a discount of more than 10 per cent off the market price by way of a general mandate, and an extraordinary shareholder meeting must be convened to put it to vote instead.

 

The same shareholder approval must also be sought if a company intends to issue new shares of more than 20 per cent of its existing share base for mainboard issuers or more than 50 per cent for Catalist issuers.

 

Mr Tan said a company planning to issue "death spiral" convertibles must send shareholders a circular "written in plain English and without overly legalistic jargon, before the shareholder vote". Company circulars must make clear how such a bond could result in massive dilutions detrimental to investors.

 

Disclosure rules require a company to explain clearly in its circular the rationale for such an issuance, as alternative forms of financing will be hard to come by once a company's shares go into a tailspin. Finally, the SGX said that "death spiral" convertibles are a type of bond and rank ahead of ordinary shares when the company is repaying its creditors.

 

http://www.straitstimes.com/business/sgx-flags-risks-of-death-spiral-bonds

Edited August 31, 2016 by Blueray

[Blueray]

Many bondholders affected by Pac Andes liquidity crisis

 

 

Investigations into firm's transactions had been going on since last year, but bondholders found out only last month

 

 

The liquidity crisis hitting Pacific Andes Resources Development (PARD) has ensnared shareholders and bondholders alike since the firm failed to honour coupon payments on $200 million worth of Singdollar bonds in January.

 

 

But investigations made by separate accounting firms on behalf of the fishing firm's bank lenders suggest that some of PARD's wounds may have been self-inflicted.

The investigations began after HSBC's risk team spotted certain "red flags" at parent company Pacific Andes International Holdings last year. Investigators appear to have uncovered suspicious transactions by the firm and associate companies over a period of years.

.....

Ahead of that, more than 70 retirees, semi-retirees and professionals who each shelled out $250,000 or more on the bonds have come together over the last two months to see if they can recover at least a fraction of their savings.

The number of DBS private banking clients involved prompted the bank to appoint Clifford Chance Asia as their lawyers. DBS was the sole lead manager and bookrunner for the 8.5 per cent unsecured bonds that sold like hot cakes in 2014.

.....

http://www.straitstimes.com/business/many-bondholders-affected-by-pac-andes-liquidity-crisis

[Throttle2]

Singapore millionaires stung by the misery of recent bond defaults now have company as the fallout threatens losses for mom-and-pop investors.

All four new issues of Singapore dollar-denominated notes targeted at individuals this year have dropped below the par sales value, as failures in the broader market stoke speculation nonpayments will spread. UBS Group AG’s wealth management unit said in an Aug. 16 report that retail investors are being sold "weak" names, and Lombard Odier said they face default risks on securities with poorer credit profiles.

“Now with bonds of small-medium-enterprises with weaker credit profiles being sold to retail investors, this exposes mom-and-pop investors to the risks of a default and bond restructuring,” said Dhiraj Bajaj, senior vice president in Singapore at Lombard Odier.

The last time Singapore’s individual investors suffered default was in 2008, when Lehman Brothers Holdings Inc.’s collapse resulted in failure to pay structured notes called mini-bonds, according to Bloomberg-compiled data. Signs of stress are rising as the economy cools. Swiber Holdings Ltd. failed to pay a coupon earlier this month, Pacific Andes Resources Development Ltd. reneged on securities in January and PT Trikomsel Oke missed payments late last year. While none of those incidents involved mom-and-pop investors, they have raised alarms.

Singapore’s regulator is tightening safeguards in the bond market as it encourages broader participation. The focus of the Monetary Authority of Singapore’s "regulatory regime for investor protection, particularly for offers made to retail investors, is two-fold," it said in an e-mailed response to questions. "First, we require issuers to make timely and relevant disclosures so that investors can make informed decisions. Second, we require financial intermediaries that distribute investment products to deal with their customers fairly."

 

 

 

Close all those tabs. Open this email.

Get Bloomberg's daily newsletter.

Sign Up

 

Information disclosure requirements in Singapore are rigorous, and "issuers who offer bonds to retail investors are required to disclose key financial information about the features of the bonds and risks relating to the issuer as well as the bonds," MAS said. "In the case of bonds, investors need to look beyond the headline yield offered and carefully consider the financial performance and strength of the issuer or the credit risk it poses, the risk of interest rate changes that affect the price of a bond and the liquidity of the bond."

Maintaining Safeguards

In 2014, the central bank said in response to feedback on a consultation paper that it would proceed with steps to make it easier for companies to offer bonds to individual investors while maintaining sufficient safeguards.

The four retail securities sold this year are listed on the Singapore Exchange. They were marketed through offering statements containing prescribed information, and the issuers must announce results and explain significant factors that affect them, according to the bourse.

"Under Singapore’s disclosure-based regime, they are also obliged to make continuous disclosures of any other material information," the exchange said in an e-mailed reply to questions. It published a column in June outlining things retail investors should be aware of when buying bonds. Economic Headwinds

The local-currency retail note market is expanding just as analysts forecast Singapore’s economy will grow at the slowest pace in seven years in 2016 at 1.8 percent growth.

“I think there is a growing risk of defaults happening with a slowing economy,” said Vishal Goenka, Singapore-based head of credit sales for Asia at Deutsche Bank AG.

Rather than using impartial analysis, investors have bought a lot of notes based on familiarity with the issuer’s name or just because they are from Singapore, according to Bajaj at Lombard Odier, which has been avoiding Singapore dollar bonds.

The 5.3 percent securities of Aspial Corp., a jewelry retailer and developer of high-rise condos, have dropped to 97 cents from about 100 cents at the end of July, according to exchange prices.

A spokeswoman for Aspial declined to comment.

Assessing Exposure

The 6 percent perpetual bonds sold to mom-and-pop investors by water company Hyflux Ltd. have declined to 95.4 cents from about 100 cents as recently as Aug. 12, exchange prices show.

Hyflux’s group chief financial officer Lim Suat Wah said the company has a cash balance of S$494 million as at end June 2016 and also recently completed project finance for two major projects. “There is sufficient cash as well as available lines such that the company does not need to raise additional funds to redeem any maturing facilities,” she said.

Rising risks in Singapore’s bond market were highlighted in the missed payment by Swiber, which operates construction vessels to support the offshore oil and gas industry.

Its default places attention on high-yield securities amid mounting regulatory scrutiny, according to Magdalene Teo, fixed income analyst at Julius Baer.

“While the current low interest rate environment offers some reprieve to companies in terms of lower funding costs, those companies with higher leverage may find it challenging to refinance their upcoming maturities as local banks assess their exposure," said Teo.

Ole ole ole ole ole ole

Many bondholders affected by Pac Andes liquidity crisis

 

 

Investigations into firm's transactions had been going on since last year, but bondholders found out only last month

 

 

The liquidity crisis hitting Pacific Andes Resources Development (PARD) has ensnared shareholders and bondholders alike since the firm failed to honour coupon payments on $200 million worth of Singdollar bonds in January.

 

But investigations made by separate accounting firms on behalf of the fishing firm's bank lenders suggest that some of PARD's wounds may have been self-inflicted.

The investigations began after HSBC's risk team spotted certain "red flags" at parent company Pacific Andes International Holdings last year. Investigators appear to have uncovered suspicious transactions by the firm and associate companies over a period of years.

.....

Ahead of that, more than 70 retirees, semi-retirees and professionals who each shelled out $250,000 or more on the bonds have come together over the last two months to see if they can recover at least a fraction of their savings.

The number of DBS private banking clients involved prompted the bank to appoint Clifford Chance Asia as their lawyers. DBS was the sole lead manager and bookrunner for the 8.5 per cent unsecured bonds that sold like hot cakes in 2014.

.....

http://www.straitstimes.com/business/many-bondholders-affected-by-pac-andes-liquidity-crisis

 

Willing buyer willing seller?

 

Hhhmmmmm.......

[Sdf4786k]

https://www.businesstimes.com.sg/banking-finance/investors-can-invest-in-temaseks-first-retail-bond-to-boost-retirement-income-ho

 

At 4.35% sounds very attractive.

[Enye]

wah can lend $ to ah gong... good leh

 

 

[Sdf4786k]

wah can lend $ to ah gong... good leh

 

 

[Throttle2]

wah can lend $ to ah gong... good leh

 

 

[Enye]

Ah gong borrow at 4.35 and lend out at 7.35

Steady lah.

 

Bao jiak!

 

ah gong sure bao jiak lah

 

for me peasant, no choice...either 4.35/7.35 or 0/7.35.  need to pick scraps thrown by ah gong

 

for you accredited investor, straight go for 7.35 and above....of course steady!

 

 

[Throttle2]

You @enye not Accredited Investor meh?

 

Mai kay kay

 

Most people in MCF are accredited mah....

Either $2mil networth or $300k salary.

Sup sup suey lah...

Edited June 6, 2018 by Throttle2

[Enye]

You @enye not Accredited Investor meh?

 

Mai kay kay

 

Most people in MCF are accredited mah....

Either $2mil networth or $300k salary.

Sup sup suey lah...

 

boss, you see me too up

 

i am a discredited investor

 

talk so much no money to invest type

 

 

[Enye]

You @enye not Accredited Investor meh?

 

Mai kay kay

 

Most people in MCF are accredited mah....

Either $2mil networth or $300k salary.

Sup sup suey lah...

 

boss, you see me too up

 

i am a discredited investor

 

talk so much no money to invest type

 

 

[Throttle2]

boss, you see me too up

 

i am a discredited investor

 

talk so much no money to invest type

 

You are super accredited type

If dont at least lose a few million bucks, wont be bothered one

[Sdf4786k]

http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx

 

View

If you hold to maturityIf you redeem early

• SBJul18Issue code: GX18070N
• 2 Jul 2018Issue date
• 1 Jul 2028Maturity date
• 2.63%Effective return per year
• $15,966Total interest earned

 

YearAnnual interest ($) 

 

Looks like if You can tong and place your money for 10 years, u get back 15,966 for 60K kind of fixed D.

Edited June 7, 2018 by Sdf4786k