DBS Highnote 5

[Apollo]

now? tat's too early, haven see pple jumping in NYC off building yet

[Jamjammer]

Bro, dont say things like that lah. I know you dont mean it.

 

As the crisis evolve with more substantial impact, we are nearer to the bottom of the crisis. Though no one can predict the end, surely when the market turns, there'll be opportunity to profit from it. I miss my chance during the Asian Econs Crisis, will not let this chance slip by.

[Genie47]

You don't need to get in at the absolute bottom. Even getting in now you are not getting in at the top. Now that counts. If die die want to get in at the bottom, confirm not investing. Confirm more like gambling. Gambling can wait for a while. IR coming and you can throw money w/o feeling bad.

[Hub_n_mona]

http://business.asiaone.com/Business/News/...0918-88469.html

[Apollo]

go read up on the events leading to the great depression and u will understand how things taken place and how history will repeat itself.

[Eyke]

note: was referring to Minibond when i said HSBC trustee...

[Killer5010]

High return = High Risk

 

you can't expect a banker to predict the market. if he or she can do that, he/she don't have to work liao.

 

just like fortune teller, if they can predict my future, why cant they predict theirs ?

[Eyke]

The catch is that all these Highnotes and Minibond were seen as relatively safe

as no one thought big boy like Lehman Bros would go under.

 

So obviously none of the bankers would have explicitly told their clients:

"Please note if Lehman Bros go under, you might get nothing back",

when they were selling them the products.

 

The clients are now using the above fact to blame the bankers that sold them the products.

 

Although the prospectus would have listed the above risk,

it's all in the fine print that most of the clients would not have bothered to read.

[Celicar]

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?

 

I'm not too sure whether they've informed the customers yet because I'm not 1 of the purchasers, but they have not gone public voluntarily with their comments on this Structure. I don't see a need for them to, actually, because this is a private transaction and it does not appear to be so widely held by the public as to warrant their coming forward to make public announcements.

[Celicar]

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?

 

On the issue of compensation per se, agreed, unless it is written into the contract there would be no compensation for the loss suffered.

 

But the sale of such structured products to consumers is governed by the Financial Advisers Act and Securities & Futures Act so from that perspective, such transactions are slightly different from sale & purchase of shares. Consumers may not get direct compensation for the loss, but if the product was sold without doing proper/sufficient risk appetite assessment, explanation of product risks and mechanism or worse, misrepresentation, then that avenue of recourse could perhaps be explored.

[B777jubilee]

see www.fundsupermart.com There is a forum discussion on one Cash Fund from DBS Asset Management that lose 4% in a day due to the fund hold Lehman Brother Bonds. Fall 4% in 1 day for a Cash Fund? My friend told me that one of the objective of the fund is capital preservation.

[Eyke]

good luck trying to prove misrepresentation, unless you have solid proof, eg. taped voice conversation.

 

all the banks usually cover they behinds really well by getting their clients to sign off on all purchases,

even recording their verbal agreements in addition.

[Eyke]

if objective was capital preservation, then should have bought capital guaranteed funds.

 

anything else is just an objective, worthless like mission statements.

[Nhyone]

Although the prospectus would have listed the above risk,

it's all in the fine print that most of the clients would not have bothered to read.

 

It's not a fineprint in the prospectus. The credit events are actually listed out very clearly in the prospectus. It's just that one just dismiss these events as impossible.

[Eyke]

Thanks for the correction.

 

Since they discounted the probability of the event occurring,

they shouldn't complain now, but when money is lost,

the sales is the only person contactable to screw.

[Eacs]

Wow, after seeing this forum i cant sleep last nite.Cos i purchased some high notes in 2005.called the DBS hotline for assistance but they know nuts.

 

Went down early in the morning to cheak on my high notes.Heng its DBS High Notes 1.I am kind of relive.

 

But can some1 advise me on the DBS high note 1?The officer said that it takes a very major event to liquidated more than 26% than i will be affected(eg USA+Europe+Asia).To be frank i know nuts about investment (execpted for property).If I cash out now before it mautre (end of 2010) i will be able to recover back 85% of my principle amount only.Every end of the year i am geting back about 3.2% returns.

 

Apperciate some kind soul for your enlightenments/inputs.Thanks a million.

[Ozkaki]

On the issue of compensation per se, agreed, unless it is written into the contract there would be no compensation for the loss suffered.

 

But the sale of such structured products to consumers is governed by the Financial Advisers Act and Securities & Futures Act so from that perspective, such transactions are slightly different from sale & purchase of shares. Consumers may not get direct compensation for the loss, but if the product was sold without doing proper/sufficient risk appetite assessment, explanation of product risks and mechanism or worse, misrepresentation, then that avenue of recourse could perhaps be explored.

 

will be difficult. because when u sign the form, u signed it acknowledging the risk. unless it is recorded that the principle will be safe.

[Crv007]

The catch is that all these Highnotes and Minibond were seen as relatively safe

as no one thought big boy like Lehman Bros would go under.

 

So obviously none of the bankers would have explicitly told their clients:

"Please note if Lehman Bros go under, you might get nothing back",

when they were selling them the products.

 

The clients are now using the above fact to blame the bankers that sold them the products.

 

Although the prospectus would have listed the above risk,

it's all in the fine print that most of the clients would not have bothered to read.

 

it takes 2 hand to clap. The customers are dumb enough not to ask who is the gurantor. common sense, when there is gurantee sure got gurantor. Just look at AIA policy holders, all rush like mad to redeem policy cause Common Sense AIA gurantee their policy not MAS or PAP!