tag:blogger.com,1999:blog-2558835596101121602.post873598761137759541..comments2024-02-29T13:59:08.383+08:00Comments on Singapore IPOs: Temasek T2023 - S$ BondMr. IPOhttp://www.blogger.com/profile/16449331327581040185noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-2558835596101121602.post-46155467373707241082018-10-27T10:47:06.191+08:002018-10-27T10:47:06.191+08:00Dear Boy,
Thanks for sharing! Dear Boy, <br /><br />Thanks for sharing! Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-38530407531552225722018-10-26T20:50:51.850+08:002018-10-26T20:50:51.850+08:00Hi Mr IPO,
I have done the analysis in my recent...Hi Mr IPO, <br /><br />I have done the analysis in my recent post. Just thought of sharing this information to wider audience. <br /><br />Apart from the one-time application fee, an investor would be subjected to a recurring cost of $2 per counter per quarter. This sums up to a fee of $8 per year. <br /><br />Before computing the effective interest rate of the Temasek Bond, let's assume thatThe Boy Who Procrastinateshttps://www.blogger.com/profile/05055586776394310999noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-20723220238801278822018-10-22T09:19:43.511+08:002018-10-22T09:19:43.511+08:00Only those cash that earns 2.5% will be “worth it”...Only those cash that earns 2.5% will be “worth it”. In addition, also need to factor in the transaction costs of using CPF investment account. I haven’t done the analysis but may not be worth the effort 🤣. While it is possible that bond prices may trade above par, it will only benefit those who got it through the placement tranche. Not worth it to “flip” for the public tranche as allocation Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-75894851934144932602018-10-22T08:54:28.020+08:002018-10-22T08:54:28.020+08:00Mr IPO, you mentioned that one may use CPF Ordinar...Mr IPO, you mentioned that one may use CPF Ordinary Account's money to invest the bond. Considering that Ordinary Account gives circa 3.5% interest rate, would it not be wise to just keep the money in CPF instead? I think bond price will be fairly stable so possible capital upside from that is relatively remote? Welcome your views. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-19681347150188869042018-10-22T06:29:11.318+08:002018-10-22T06:29:11.318+08:00Balloting ratio - I think Temasek will favor small...Balloting ratio - I think Temasek will favor small applicants. If you had $500,000 to spare, they would have assume you can get it from the placement tranche. <br /><br />Who is the shareholder of Temasek? It is the Minister of Finance. If that also default, what you think will happen to the confidence in Singapore by global investors?<br />Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-74367212425289716032018-10-22T00:00:42.958+08:002018-10-22T00:00:42.958+08:00Why do you say the chances of me getting alloted $...Why do you say the chances of me getting alloted $50,000 of this T2023 Bonds is pretty low??<br /><br />I am thinking of applying $500,000 for this T2023 Bonds tomorrow!<br /><br />I am a middle-aged person.<br /><br />Is it you think the balloting allocation ratio for the $500,000 applicants will be less than $50,000??<br /><br />But 50,000 is only one-tenth of 500,000 and the website wrote got Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-88656395558564857012018-10-21T22:00:23.029+08:002018-10-21T22:00:23.029+08:00Answer to Q1 - yes. Type in $50,000 but the likeli...Answer to Q1 - yes. Type in $50,000 but the likelihood of you being allotted $50,000 is pretty low. <br /><br />Answer to Q2 - yes. Just search for it when the ipo closes. You should be able to find it. Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-31078741742930055512018-10-21T20:46:49.697+08:002018-10-21T20:46:49.697+08:00Another 2 questions
1)Assuming if I am alloted $5...Another 2 questions<br /><br />1)Assuming if I am alloted $50,000 of this T2023 bond, and if the trading price on the open market on 26th Oct is example $1.05, so is it when selling this bond in my DBS Vickers online website is it the same way as selling any other normal ipo share?! But the brokerage online webpage when you click sell, the brokerage online webpage sure have a box that tells you Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-18267273395589065862018-10-21T17:10:44.679+08:002018-10-21T17:10:44.679+08:00Answer to Q1 - yes. Temasek must pay principal at ...Answer to Q1 - yes. Temasek must pay principal at end of 5 years back to investors. The reverse is true. If someone buy from the open market at 105% after IPO, then the yield drops as the interest every 6 months is still based on the par value and at the end of 5 years, he gets back the principal of 100% and not based on the 105% he paid. <br /><br />Q2 - yes if it is held in CDP and is already Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-68351898440058683992018-10-21T16:04:25.717+08:002018-10-21T16:04:25.717+08:00I haven't apply for this bond becos I am still...I haven't apply for this bond becos I am still undecided.<br /><br />I have 3 questions.<br /><br />For this T2023 Bond, if a person is alloted $50,000 bonds and if for example, this bond falls to 80 cts within the next 1 to 4 years, but if the person holds his T2023 bond until end 2023, then is it Temasek will still pay him back the full principal amount $50,000 in end 2023?!<br /><br />2)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-74987061907331585352018-10-21T14:02:45.661+08:002018-10-21T14:02:45.661+08:00If Temasek collapse, then I think the rest of SG i...If Temasek collapse, then I think the rest of SG investments we have also kaput ...Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-41014177941233119522018-10-21T14:00:26.922+08:002018-10-21T14:00:26.922+08:00Hahaha yah, probably not worth the effort. 🤣Hahaha yah, probably not worth the effort. 🤣Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-80682235040615780342018-10-21T13:57:20.204+08:002018-10-21T13:57:20.204+08:00Different risk profiles and bite sizes. If only mo...Different risk profiles and bite sizes. If only more corporates issue retail type bonds Mr. IPOhttps://www.blogger.com/profile/16449331327581040185noreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-815282002038993572018-10-21T13:34:06.192+08:002018-10-21T13:34:06.192+08:00Lehman Brothers was AAA rated but still went burst...Lehman Brothers was AAA rated but still went burst. No nothing is absolute in life.<br />If one subscribe for $5K and assume full allocation you predicted (which I agree based on history),the coupon is only miserable $130 a year. Only enough for a small family dinner in a restaurant once a year. Is it worth while ?:)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2558835596101121602.post-39786777470378378262018-10-21T10:43:27.951+08:002018-10-21T10:43:27.951+08:00I feel there are better SGD bonds to be found by l...I feel there are better SGD bonds to be found by looking at either REITs issuances or banks (local banks have issued some investment grade perpetuals that usually yield to call around 4.5%)Pythiahttps://www.reitoracle.com/noreply@blogger.com