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buying bond

Probably too sleepy to notice;  yes, as written indeed.  Thanks.  

Actually, the $100 angbao bond was my friend's idea, the one living overseas.
Guess I won't be able to do that here or receive that here...hee hee.   

 

As stated, the minimum is SGD250k, and SGD10k thereafter.

OneSharer      ( Date: 17-Jun-2008 17:49) Posted: 178investors, did they mention what is the minimum one must buy?  Can buy it like angbao for little kids, $100/+?

 

178investors, did they mention what is the minimum one must buy?  Can buy it like angbao for little kids, $100/+? 

 

I put the question of buying bond direct to the test today to see if one cannot get bond direct from bank.

I went to ocbc to enquire about purchasing the recent Citigroup 5-yr SGD bond with coupon yield stated

at 4.98% redeemed at 100%.

The banker manager was able to pulled out quickly from the computer the bond of interest. An interesting

point to note is that you have to pay more than the par value even for newly issued bond. The banker

manager explained  banks would normally marked the bond price higher, that is their earning margin.

I saw on the computer, the bank's margin worked out to about 1% of the bond price. After factoring in

the bank's margin, the Citigroup 5-yr bond yield dropped to around 4.77% from 4.98%. Moreover, the

minimum note denomination is SGD250k and SGD10k thereafter, not a small sum. The coupon is payable

every 6mths. By the way, this Citigroup note is rated AA- , even after subprime fiasco.

Based on the above, looks like possible to buy bonds direct from the banks. Moreover, the

banker also able to show me a list of many other bonds that are available for sales (old/new issues).

 

 

Good to know (at least for future reference when interest rate better), thanks Alligator.  

 

I thought it might be useful for those who are interested in Singapore Government Bond to read their website as well as fundsupermark.

Here is the link and some copy and paste for you :

Choose a fund AB Asian Technology-A SGD AB Glb Balanced-A SGD AB Glb Eqty Blend-A SGD AB Glb Eqty Blend-A USD AB Glb Grth Trends-A SGD AB Int Health Care-A SGD ABN AMRO Brazil Equity Fund A USD ABN AMRO EastEur Eqty Fd A EUR ABN AMRO Energy Fd A USD ABN AMRO Eur Eqty Fd A EUR ABN AMRO GEM Bond Fd AH (EUR) ABN AMRO GEM Bond Fd USD A ABN AMRO L.Am Eqt Fd A USD ABN AMRO Materials Fd A EUR ABN AMRO Multi St Fd ABN AMRO Russia Eqt Fd A EUR ABN AMRO Star Asia Balanced ABN AMRO Star Asia Bond ABN AMRO Star Asian Tiger Eqty ABN AMRO Star Europe Bal ABN AMRO Star Europe Bond ABN AMRO Star Europe Eqty ABN AMRO Star Global Technology Fund ABN AMRO Utilities Fd A EUR AIGIF Acorns of Asia Balanced Fund AIGIF Singapore Bond Fund APS Alpha Fund APS Komaba Global Bond SGD AXA WM -Talents Fund Aberdeen American Opp Aberdeen Asian High Yield Aberdeen Asian Smaller Cos Aberdeen China Opportunities Aberdeen European Opportunities Aberdeen Global Emerging Markets Aberdeen Global Opportunities Aberdeen Global Technology Aberdeen India Opportunities Aberdeen Indonesia Equity Aberdeen Japan Equity Aberdeen Malaysian Equity Aberdeen Pacific Equity Aberdeen Singapore Equity Aberdeen Singapore Equity USD Aberdeen Thailand Equity AllianzGI Global Internet AllianzGI RCM Glb High Payout(SGD) BNP Paribas Agriculture (SGD) Fund Cash Fund DBS Absolute Rtrn Fd DBS Asia Bond Fund SGD (Cl A) DBS Asia Knowledge DBS Enhanced Income SGD DBS Glb Prop Securities Fd DBS Japan Growth DBS Malaysia Eqty SGD DBS Mendaki Global DBS SWING 6/3/100% DBS Shenton Asia Pacific DBS Shenton Dynamic Bond DBS Shenton Glb Opportunities DBS Shenton Global Advantage DBS Shenton Greater China DBS Shenton Greater Europe DBS Shenton Income DBS Shenton Thrift DBS Shenton Twin City DWS Asia Premier Tst DWS Asian Small/Mid Cap A SGD DWS China Eqty Fund Cl A SGD DWS Currency SGD DWS Glb Climate Change Cl A SGD DWS Glb Themes Eqty A SGD DWS Global Agribiz A2 SGD DWS Global Agribiz A2 USD DWS Invest BRIC Pl LC EUR DWS Jpn Small/Mid Cap A SGD DWS Lion Bond Fund DWS Noor Asia Pac Eq CL A USD DWS Noor China Eq CL A USD DWS Noor Glb Eq Sel CL J SGD DWS Noor Japan Eq CL A USD DWS Noor Prec Metals CL A USD DWS Noor Prec Metals CL J SGD DWS Prem Asian Bond Fd DWS Premier Select Tst DWS SGP small/midCap A SGD DWS Singapore Eqty Fd FTIF-Templeton Asian Grth A(acc) SGD FTIF-Templeton Glb Bal Fd A(acc) SGD FTIF-Templeton Glb Bond A(mdis) SGD FTIF-Templeton Global Fd A(acc) SGD FTIF-Templeton Korea Fd A(acc) SGD Fidelity AP Gth&Inc A-SGD Fidelity AP Gth&Inc USD Fidelity ASEAN A-SGD Fidelity America A-SGD Fidelity America USD Fidelity Asian Sp Sit USD Fidelity Australia AUD Fidelity China Focus-SGD Fidelity EUR Agg A-SGD Fidelity EUR HY A-SGD Fidelity EmEu,ME&Africa USD Fidelity Emer Mkt A-SGD Fidelity EmerMktDebt A-SGD Fidelity Eur Agg EUR Fidelity Eur Bd EUR Fidelity Eur Gth EUR Fidelity Eur HY AMDIST EUR Fidelity Eur HY EUR Fidelity FPS Glb Gth USD Fidelity France EUR Fidelity Germany EUR Fidelity Glb Fin Serv EUR Fidelity Glb Health Care EUR Fidelity Glb Technology EUR Fidelity Gr China USD Fidelity Gth & Inc A-SGD Fidelity Iberia EUR Fidelity Indonesia USD Fidelity Intl A-SGD Fidelity Intl Bond A-SGD Fidelity Italy EUR Fidelity Japan A-SGD Fidelity Korea USD Fidelity Latin America USD Fidelity Malaysia USD Fidelity MultiAsset Navi-SGD Fidelity Pacific-SGD Fidelity S East Asia A-SGD Fidelity S East Asia USD Fidelity Taiwan USD Fidelity Target 2020 A-SGD Fidelity Thailand USD Fidelity US HY A-SGD Fidelity US HY AMDIST USD Fidelity US HY USD Fidelity USD Bd USD First State Asia Inno & Tech First State Asian Growth Fd First State Bridge First State Dividend Advantage First State GEM Leaders First State Glb 100 Gth First State Glb Bal First State Glb Infrastr First State Glb Prop Invt First State Glb Resources First State Reg China First State Reg India First State Singapore Gth GrowthPath 2030 GrowthPath 2040 HGIF Asia ex Jap Eq-A SGD HGIF Chinese Eq-A SGD HGIF EUR Eq-P SGD HGIF GEM Eq Freestyle SGD HGIF Glb Eq Fund-A SGD HGIF Indian Eq-A SGD HGIF Japanese Eq-P SGD HGIF Spore Eq-A USD HGIF Thai Eqty Fd USD HSBC BRIC Freestyle M2C SGD HSBC Turbo Double 8 USD Henderson Asia Bonus Pyt II (SGD) Henderson Asia-Pacific Prop Eq Fd Henderson European Henderson European Prop Sec Henderson Glb Property Eq Fd Henderson Global Balanced Fund Henderson Global Bond Fund - Class A Units Henderson Global Equity Fund Henderson Global Technology Henderson Hzn Asia-Pac Prop Eq-A2 USD Henderson Hzn Asian Div Inc-A2 SGD Henderson Hzn Asian Div Inc-A2 USD Henderson Hzn China A2 USD Henderson Hzn Gl Prop Eq-A2 USD Henderson Hzn Glb Financials A2 SGD Henderson Hzn Pan Eur Alp Pl A2 EUR Henderson Hzn Pan Europn Prop Eq-A2 EUR Henderson Japanese Equity Henderson Pacific Dragon ING Inv Emg Mkts USD ING Inv Glob High Div EUR ING RF Asian Debt USD ING RF Em Mkts Debt HC EUR Infinity European Stock Index Infinity Global Stock Index Infinity US 500 Stock Index Legg Mason Asian Bond Trust Legg Mason Asian Enterprise Legg Mason Global Bond Trst Legg Mason SEA Special Sits Legg Mason Val Fd Cl A Acc-S$ Legg Mason Val Fd Cl A Acc-US$ LionGlobal AsPac Recovery LionGlobal Asia Infrastructure LionGlobal Asia Pacific LionGlobal Asia Technology LionGlobal Australia SGD LionGlobal Bond(Cl A) LionGlobal China Growth LionGlobal Europe Balanced- SGD Class LionGlobal Flexi LionGlobal Hthcare Invt-A LionGlobal Ind & Res Invt-A LionGlobal India Fund LionGlobal Japan Fund LionGlobal Japan Growth Fund LionGlobal Korea Fund LionGlobal Malaysia LionGlobal Multi Income LionGlobal Philippines LionGlobal SGD Income Plus LionGlobal SGD Money Market LionGlobal Singapore Balanced LionGlobal Singapore Trust LionGlobal Singapore/Malaysia LionGlobal South East Asia LionGlobal Spore Fixed Inc-A LionGlobal Taiwan LionGlobal Target Return LionGlobal Thailand LionGlobal Vietnam SGD M&G American Fd EUR A OCBC Capital Payout SGD OCBC Payout Select 100 II OCBC Payout Select 85 II PIMCO Emerg Mkt Bond USD PIMCO Glb Bond USD PIMCO High Yield Bond USD PIMCO Total Return BondUSD PIMCO USD Short Term USD PRU Asian Balanced Fund PRU Asian Infrastructure Eqty SGD PRU Dragon Peacock Fund PRU Global Balanced Fund PRU Global Basics Fd SGD Cl PRU Global Basics Fd USD Cl PRU Global Technology Fund PRU Income X PRU Mthly Income Plan Cl A PRU Mthly Income Plan Cl M PRU Pan European Fund PRU Protected Global Titans Fund (S$) Parvest Asian Conv Bond Parvest BRIC Parvest Brazil Parvest Convg Europe (EUR) Parvest EUR Conv Bond (EUR) Parvest EUR Opportunities (EUR) Parvest Emerging Mkts Parvest Europe Div (EUR) Parvest Europe Financials (EUR) Parvest Europe Mid Cap (EUR) Parvest Target Rtn Plus (EUR) Phillip Asia Pac Growth Phillip Growth Fund Phillip Money Market RREEF APEC Real Est USD LQ SGAM Asian Re Est Div SGD SGAM Bonus Builder Fund SGAM Glb Luxury & Lifestyle S$ SGAM Global Guaranteed Fd SGAM Golden China Fund S$ SGAM India Infrastructure Fd SGAM Oasis MENA Fund SGD SGAM Spore Dividend Growth SGAM Total Return Bond S$ SGAM US Diversified Bond Fd S$ Schroder AS Commo EUR A Acc Schroder AS Commo USD A Acc Schroder AS Commodity Fd SGD A Acc Schroder Active Strategies Ptfl S$ Cl Schroder Active Strategies Ptfl US$ Cl Schroder Asian Balanced Fund Cl A Schroder Asian Bond Fund Schroder Asian Equity Yield Fund Schroder Asian Growth Fund Schroder Asian Premium Bond Fund Schroder BRIC Fund Schroder Balanced Growth Fund Cl A Schroder Emerging Europe Fund Schroder Emerging Markets Bond Fd Schroder Emerging Markets Fund Schroder European Eq Yld Fd Schroder European Equity Alpha Fund Schroder European Large Cap Eqty Fd Schroder Global High Yield Fund Schroder Global Smaller Cos Fund Schroder Golden Blossom Fund Schroder Greater China Fund Schroder ISF Em Eur A Acc EUR Schroder ISF Euro Eq Alp A Acc EUR Schroder ISF Gb Climate Ch Eq A Acc SGD Schroder ISF Gb Div Max ACC SGD Schroder ISF Gb Div Max DIS SGD Schroder ISF Gl Em Mkt Opp A Acc SGD Schroder ISF Gl Em Mkt Opp A Acc USD Schroder ISF Latin American A Acc SGD Schroder ISF Latin American A Acc USD Schroder ISF Middle East SGD A Acc Schroder Japanese Eqty Alpha Fd Schroder Japanese Equity Fund Schroder Multi-Express Fd Schroder Pan Asia Fund Schroder S$ Dual Advantage 100 Fund Schroder S$ Dual Advantage 85 Fund Schroder S$ Reserve Fund Schroder Singapore Trust Cl A Schroder Strategic Bond Fund UBS Asian Consumption SGD RA UOB Optimix Asian Bond UOB Optimix E-Commerce UOB Optimix SGD Fund UOB Optimix Sure Fund UOB Unifund UOB United Asia Fund UOB United Asia Top 50 UOB United European Equity Fund UOB United European Small Cap Fund UOB United Glb Emerging Mkts Portfolios S$ UOB United Global Bond SGD UOB United Global Capital Fund UOB United Global Healthcare Fund UOB United Global Internet Fund UOB United Global Technology Fund UOB United Global Telecoms Fund UOB United Gold & General Fund UOB United Greater China Fund UOB United Growth Fund UOB United International Bond Fd UOB United International Growth Fund UOB United Japan Growth Fund UOB United Millennium Trusts 1 UOB United Millennium Trusts 2 UOB United Millennium Trusts 3 UOB United Regional Growth Fund UOB United S$ Conv Bond Fd United Asia Pac Infrastructure United Asian Growth Opprt United Cap Pro Fd - Series 3 SGD United Enhc Income Fd United Glb Real Estate Sec Fd United Global IPO Fund United Global Resources Fund WIOF Adriatic-Balkan Opp A SGD WIOF Central Asian Opp A SGD WIOF Greece-Cyprus Opp A SGD WIOF Russian Opp Eqty A SGD Yield 15 Yield 20 USD     Choose a FAQ 01. Singapore Government Bonds 02. SGS Bonds Terms and Calculations 03. Transaction Procedures for SGS Bonds 04. Buying SGS Bonds 05. Selling SGS bonds 06. Transferring SGS Bonds

Singapore Government Securities (SGS) are debt instruments of the Government of Singapore and can be in the form of treasury bills or bonds. Singapore Government bonds were first issued in the early 1960s to cater to the needs of banks and government agencies for risk-free and liquid assets. In 1998, the Monetary Authority of Singapore (MAS) embarked on a strategy to turn Singapore into an international debt hub and key to this is the development of an efficient and liquid SGS market. In May 2000, MAS undertook to ensure a sizeable free float of bonds above banks' minimum liquid asset holdings to meet the needs of both existing and new players, and to promote an active secondary market. For more background information on SGS, you may go to www.sgs.gov.sg iFAST Financial is participating in the efforts to develop the SGS market by making SGS bonds available to retail investors via its online channel, Fundsupermart.com. Fundsupermart.com, which also retails unit trusts, plays the role of a secondary dealer in the SGS bond market. As a secondary dealer, Fundsupermart.com provides a transactional platform for SGS bonds that were previously issued in the primary market. It administers the entire buy/sell process for SGS bonds, including the coupon payments, and it interfaces with MAS-appointed primary dealers to obtain price quotes for all SGS bonds. (SGS primary dealers are committed to making continuous 2-way prices for SGS under all market conditions.) Fundsupermart.com is the first online entity to be given the opportunity to make SGS bonds available to the public. It intends to harness the power of the Internet to raise awareness for SGS bonds and contribute to the efforts to develop Singapore into an international debt hub.

 

 

Hi Salute

Yes, I was told that a person could just walk into a bank, overseas, and purchase bond.    

Perhaps, you may want to try contacting another bank for info?  Some yrs back, I remembered contacting a bank here (forgot which one) regarding bond/treasury bill (also forgot which one).  The staff told me I needed to wait for its availability, via advertisement in the newspaper.  

Around that time, I also spoke to an OCBC staff who process treasury bills, and he was quite patient.  Unfortunately, I don't remember enough to relay more helpful info to you.  

 

Bond traders said selling not finished ... SGS bond 10-yr today trading up to 3.67% vs 3.59% yesterday.

 

I've never traded bonds in Singapore myself. But the general impression I have is that the bond market is pretty much catered to institutions if you look at the bond/bill instruments that are readily accessible to retail investors (I suppose Singapore bond mkt for retail is too small for most institutions to cater to). The high denomination per bond is probably also another factor why retail market is very limited in Singapore (look at Singapore Govt bonds).

Offhand other than very short-term Treasury bills and ABF bond counter listed on SGX, the other ways to get access are through investments in bond-based unit trusts/funds.

As for rates, individual countries will have different prevailing interest rates depending on the nature of their economic state and currency. E.g. Australia and New Zealand typically have much higher rates, as compared to Europe, US, Japan.

Singapore's rates are currently pretty low partly because of singnificant capital inflows from overseas investors interested in the Asia growth story, and partly because our rates follow US rates to some extent.

 

Hi Quah and 178,

Thanks for your in dept advise. I shall not get into it now, however, the question I raised was that is Singapore practice different from the States that we are not able to buy the bond direct from the issuers, eg. HDB's bond and we can't get it from the bond or it's handling agent.

I got the answer from DBS that they only sell bonds to institute( in bulk) and my remisier said that we have to bid the bonds counter like the way we bid for shares, that is not what I want. But is this how it work here?

Another matter, if the US Fed is going to increase the rate, I suppose the saving interest rate in every currency will be raised eg. A$ and S$, am I right?

Thanks

 

 

Hi Salute,

I have to agree with 178investors. The long-term interest rate trend is more likely to be going up (US Fed Reserve is unlikely to drop rates anymore; their increasing concern with arresting inflation is likely to lead to a future rebound in Fed interest rates in the next few years).

This is going to cause the bond yield to go up, i.e. to put it more simplistically without going too much into the actual formulae, the bond price is going to drop while the coupons stay constant over the next few years. In other words, you may face the risk of a depreciating bond price while earning fixed coupons.

I'm assuming that you intend to buy and hold the bonds for a couple of years and profit from the annual/semiannual coupons.

 

 

Don't think it's good to enter the bond market now. Just my thought.

 

Hi all the veterans,

I have wanted to buy bond last year when read that its issued by eg hdb of a return of 3%, but phillip isecurity was not selling and when I asked my remisier, he said we can only buy bonds fr the list on the stock, ie: we have to queue for it like the way we bid for shares.

When I approached DBS, the staff kept emphasesd on funds' package; after all the stress on that particular bond, he finally went to the back room a few trips and finally gave me an answer, ie: govt only sells the bond to institutions not to the public direct.

How different is it from the States, cos people that said that they can buy it direct. But over here, it seems not easy. First, a few sectors(the staff of DBS was so ignorant in handling my approach for the above matter). It make sme believe that the bonds are for the big institute.

Can someone advise me on this matter. thanks