Hkboy Neutral Newbie September 17, 2008 Share September 17, 2008 Just Wondering, DBS High Note 5 was mention in Business Times today. It say this structure "1st to default" and there is Lemmen Brothers, thus in short now Lemmen is gone it also mean this structure is worthless. Question is why DBS till today still keep mum ?? don't inform customers yet? ↡ Advertisement Link to post Share on other sites More sharing options...
Silver_blade Turbocharged September 17, 2008 Share September 17, 2008 Maybe they don't want their other customers to think they are in trouble and start withdrawing their $$$ from the bank? Link to post Share on other sites More sharing options...
Silver_blade Turbocharged September 17, 2008 Share September 17, 2008 One of my friend is one of those who lost every single cent....over $50k. Link to post Share on other sites More sharing options...
Jamjammer Neutral Newbie September 17, 2008 Share September 17, 2008 Hope you are not into this sort of structured products, the redemption will be Link to post Share on other sites More sharing options...
Nhyone 4th Gear September 17, 2008 Share September 17, 2008 Do you think DBS will compensate the customers? I almost bought one of the minibonds. The interest rate was attractive, and I was told the worst-case credit events won't happen, because if it did, it would mean something like the end of the world. Well, it is the end of the (financial) world as we know it now. Link to post Share on other sites More sharing options...
Kusje Supersonic September 17, 2008 Share September 17, 2008 Compensate for what? It is not their fault. You can't expect to take those returns without any risks. If you can't take risks then go buy government bonds. Link to post Share on other sites More sharing options...
Jamjammer Neutral Newbie September 17, 2008 Share September 17, 2008 If they misled their customers, then you probably can press your case for compensation. But this is Singapore and to do this (unlike in US), it's not easy esp you are up against Deep Blue Sea - biggest bank in Spore. When times are good, everyone just buy whatever rubbish with eyes closed. Crisis strike now, all suck thumb. Financial institutions are selling this sort of products to sophisticated clients, I wonder how many really know what's the inherent risk? I even know someone who is a senior guy in risk dept in a bank buying this sort of products. I ask him why buy this? What is the risk event? What is the definition of capital protection? All he says is yields is better than FD, wa lau eh, WTF man Link to post Share on other sites More sharing options...
Kusje Supersonic September 17, 2008 Share September 17, 2008 Err why WTF? If he's working in the risk management department then he clearly knows the risks involved. If he decided that the additional yield is worth the additional risk then it is his choice to make. Maybe he just didn't feel like explaining it to you. Link to post Share on other sites More sharing options...
Darkblue 1st Gear September 17, 2008 Share September 17, 2008 Deep Blue Sea is largest bank in SEA Link to post Share on other sites More sharing options...
Bsbs Neutral Newbie September 17, 2008 Share September 17, 2008 To buy is ok, the question is how much of your money is used to buy. If you are using just 10% then its definitely OK. If use 90% then bye bye Link to post Share on other sites More sharing options...
Apollo 1st Gear September 17, 2008 Share September 17, 2008 Just Wondering, DBS High Note 5 was mention in Business Times today. It say this structure "1st to default" and there is Lemmen Brothers, thus in short now Lemmen is gone it also mean this structure is worthless. Question is why DBS till today still keep mum ?? don't inform customers yet? according to suay times, they called liaoz. it may b worthless if lehman close shop oh... i forgot got banker's fee hv to pay. Link to post Share on other sites More sharing options...
Apollo 1st Gear September 17, 2008 Share September 17, 2008 One of my friend is one of those who lost every single cent....over $50k. 1st he has hv to hv $50K in order to lose $50K my loss is zero. Link to post Share on other sites More sharing options...
Baxter Neutral Newbie September 17, 2008 Share September 17, 2008 Just call the bank and ask for status of the notes. Link to post Share on other sites More sharing options...
Nirxe Clutched September 17, 2008 Share September 17, 2008 Their reply would be: "huh are you referring to DeepBlueSea Worthlessnote 0"? Link to post Share on other sites More sharing options...
Eyke Supercharged September 18, 2008 Share September 18, 2008 no one knows as yet, not even the trustee HSBC, so banks will tell you to wait. Link to post Share on other sites More sharing options...
Ozkaki 2nd Gear September 18, 2008 Share September 18, 2008 in this case, DBS is just the reseller/agent. i don't see why should they should compensate the customers. if u buy your shares from your broker, do you expect him to compensate you when the share price goes down? Link to post Share on other sites More sharing options...
Nhyone 4th Gear September 18, 2008 Share September 18, 2008 You're right. I was thinking if what happened to AIA/AIG could happen to the banks here -- a loss of confidence resulting in panic withdrawals, whether justified or not. But for structured products, the banks have already taken their commissions and can truly say 'it's none of my business'. Link to post Share on other sites More sharing options...
Jamjammer Neutral Newbie September 18, 2008 Share September 18, 2008 Err why WTF? If he's working in the risk management department then he clearly knows the risks involved. If he decided that the additional yield is worth the additional risk then it is his choice to make. Maybe he just didn't feel like explaining it to you. Yeah, maybe. Whether you are in risk or man in the street, the principles of risk is not too difficult. There's no free lunch. Additional return comes addtional "conditions". The question is, is it worthwhile? To me, additional few percent returns to stomach CDO and CDS position just doesnt add up. Amazing thing is, this CDO exploded Aug/Sept last year, yet people still buy all these whatever notes, minibonds with their eyes since then. Now is the time for people with cash to start building their portofolio ↡ Advertisement Link to post Share on other sites More sharing options...
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