By Belinda Lim
There has been 2 game changers and another one slated for this Thursday where the European Central Bank (ECB) is expected to do something drastic or face the displeasure and wrath of the markets.
Yet the ECB had offered to buy 1 trillion in bonds over 2 years just a month ago and all that Bank of Japan (BoJ) needed to do was to offer to increase their purchase by 100 billion last week for the fx markets to collapse completely?
That is because 1 trillion is too big a number to toss around and people did the math to realise that ECB is bluffing about it and there is not enough bonds, really, to monetise in the end.
The Federal Open Market Committee (FOMC) ending their Quantitative Easing (QE) took market off guard, to my surprise, because pre-FOMC price action appeared so certain with the EUR and gang rallying up right to the last minute.
And the BoJ came just over a day later to wipe the slate clean and a new era for the USD begins.
Now we are sitting at a 4 year high for the DXY index and the analysts are sending out reports screaming to sell the EUR?
<a target="_blank" …read more
By Belinda Lim
ISSUER: Mapletree Commercial Trust Treasury Company Pte Ltd
GUARANTOR: DBS Trustee Limited (in its capacity as trustee of MCT)
ISSUE RATING: Expected to be Baa2 by Moody’s
STATUS: Senior, Unsecured
FORMAT: RegS, Bearer, S274 & S275 of Singapore SFA
ISSUE SIZE: TBD
TENOR: 5 Years
COUPON: 2.70% area, semi-annual, actual/365 (fixed)
DENOMS: SGD 250,000
LISTING: Application will be made to be listed on SGX-ST
LAW: Singapore Law
DOCUMENTATION: Off Issuer’s SGD 1bn MTN Programme
5 year interest rate 1.67%.
Coupon is 2.7%. Dividend is 5.57%.
Cambridge Trust BBB- 3.5% 11/2018 (4 year), was priced at 3.5% yesterday and is dealing at 100/100.50 (3.43%) today.
There comes a time in every man’s life, when he has to grit his teeth, grab life by the nuts…
…And buy an engagement ring.
Yes, dear reader, I’ve come to that milestone: My girlfriend and I have spent the last couple of months on the hunt for a ruby gemstone that will form the centrepiece of the engagement ring that I’ll eventually propose with. (In case you’re wondering, yes, we’re searched for it together – even though I haven’t planned the proposal yet. I know it sounds weird, but that’s how we roll.)
Guys reading this – I know how intimidating it is to walk into a jewellery store to ask about an engagement ring. So I thought I’d share what I’ve learnt from my search so far. Most of this should be applicable, even if you aren’t getting a ruby.
Girls – if you’re expecting that your dude is going to propose soon and you’re looking for something a little more customised than the usual store-branded ones (e.g Tiffany & Co, etc)… send him this article.
I write this not as an “expert”, but as a layman who picked up a few tips from dozens of people whom we’ve spoken to in our …read more
Quora.com is a question and answer site built around user generated content. Users post questions on the site, and registered members would take turns to have a go at answering the question. The best replies gets voted upwards and commands a higher presence than a mediocre answer.
The questions and answers on Quora ran the gamut from dead serious to seriously funny. The genre includes just about everything; from politics to business, travel to education to psychology and maths and technology and of course investing.
Some of the smartest people in their respective fields are on Quora, and they provide an insightful and thoughtful glimpse into their world. Recently US President Barack Obama became a Quora user, signing up to answer two questions on his healthcare proposals. Mark Zuckerberg apparently has a Quora account as well, although for the moment his activity is seemingly limited to posting rather than answering questions.
Most of the answers on Quora are relatively short and make for an easy read. They make for a good distraction while waiting for the train or while waiting in the queue. (There is only so many times you can update your facebook feed). And I always leave Quora feeling that I …read more
By Singapore Man of Leisure
My spontaneous view is that teaching “Financial Literacy” makes as much sense as teaching “Entrepreneurship”.
Of course there are certain aspects that can be taught – those housekeeping stuffs. But that’s already “taught” in our schools or in our homes as part of growing up.
The secret desire that most people seek when they use the term “Financial Literacy” as a cover, that I don’t think it can be taught – its something we have to discover or learn on our own.
Before I go on and put my foot in my mouth, I would like to hear your opinions and views on this topic.
What do you think?
Convince me whether I am completely bonkers, or you have similar ideas like me.
By Belinda Lim
GRAND CHINA AIR (HK) GUARANTEED SGD 3Y
_ New Grand China Air (HK) SGD 3Y announced post roadshow. Deal is anchored
– Guarantors: Hainan Airlines Co. Ltd. and Grand China Air Co. Ltd.
– Initial price guidance: 6.25% area
– Issue size: TBC
– Timing: As early as today
Hainan Airlines 6.25% 2017 CNH – 99.75, 6.35% which swaps to 4.50% in SGD (indicative)
Singapore Airline 3.22% 2020 SGD – 2.82% indicative yield
Grand China Air is managed under a parent company called Grand China Airlines Holding Company (GCAHC) which is held jointly by Hainan province government (48.6%), George Soros (18.6%), and the HNA group (32.8%).
Grand China Airlines Holding Company owns 29.06% of Hainan Airlines, a listed company in Shanghai Composite which is their cash-cow although their revenue is growing a lot more than their operating income, and in this case, it is more important to look at the guarantor than the issuer.
Then we have this.
Hainan Government + George Soros > = Temasek or GIC?
The gist is this – Grand China will take over all the 4 airlines under the HNA Group and they have a fleet of 133 planes!!! (SIA …read more
By Belinda Lim
Issuer: Tata International Singapore Pte. Limited
Guarantor: Tata International Limited
Format: Regulation S, Registered Form and S274/275 of SFA
Size: SGD 150 mio
Issue: Guaranteed Senior Perpetual Capital Securities
Price Guidance: 6.7% area (+/- 5bps)
Accounting Treatment: 100% Equity
Call Option: Callable by the Issuer at the 5th anniversary the “First Call Date”) and on any distribution payment date thereafter
1) From the issue date until First Call Date – fixed
Rate: rate of [ ] % (the “Initial Distribution Rate”) payable semi-annually in arrear,
2) From First Call Date and onwards – new fixed rate equal to the Initial Distribution Rate plus the Step-Up Margin of 300bps, payable semi-annually in arrear
Optional Deferral: Distributions deferrable at the discretion of the Issuer subject to the Pusher / Stopper on a cumulative and compounding basis
Pusher: Yes, on ordinary shares of Issuer, Junior and Parity Securities (12 months look-back)
Stopper: Yes, on ordinary shares of Issuer and Guarantor, Junior and Parity Securities
1) Gross-Up Event (Par),
2) Regulatory Event (Par),
3) Accounting Event (at higher of par or make-whole amount (SOR+1.5%) before First Call Date, at Par thereafter),
4) Change of Control Event (Par),
5) Breach of Covenant Event (Par),
6) Relevant Indebtedness Default Event (Par),
7) Clean up Call (at higher of par or make-whole amount …read more
By Belinda Lim
ISSUER: Cambridge-MTN Pte.Ltd.
GUARANTOR: RBC Investor Services Trust Singapore Limited (in its capacity as trustee of Cambridge Industrial Trust)
STATUS: Direct, unconditional, unsubordinated & unsecured Notes
ISSUE RATING: Unrated
CORPORATE CREDIT RATING: BBB- / Stable (S&P)
FORMAT/DOCS: Bearer / Issuer’s SGD 500 million Multicurrency Medium Term Note Programme dated 2 February 2012, supplemented by the Supplemental IM dated 1 March 2012 (collectively the “Programme”)
ISSUE SIZE: SGD 100MM
USE OF PROCEEDS: In accordance with the Programme
INTEREST PAYMENT: Semi-annual, actual/365 (fixed)
DETAILS: SGD250K/ Singapore Law/ CDP
SELLING RESTRICTIONS: As per Programme, S274 and/or 275 of the Singapore SFA
– Transaction is strongly anchored by institutional investors post roadshow
AIMS AMP REIT 4.9% 08/2016 current indicative yield 2.86%
AIMS AMP REIT 3.8% 05/2019 current indicative yield 3.80%
Ascendas REIT 2.5% 05/2019 current indicative yield 2.63%
Cambridge Industrial Trust 4.1% 04/2020 current indicative yield 3.90%
Cambridge REIT has been a favourite with the fund managers since its IPO …read more
By Belinda Lim
The Fed has finally ended quantitative easing (QE) as economic data has shown much improvement, especially the labor market. Unemployment rate has fallen to 5.9%, its lowest ever since the recession started.
Huge Improvement on US Stock Market
QE was basically buying trillions of dollars’ worth of long term bonds in an effort to keep interest rates low. This is turn helped to stimulate the economy, improve the labor market, increase spending etc. The effect of course had been huge on the stock market. The S&P 500 index rose 10% to 30+% during each of the respective QE programs.
The end of QE is generally a positive sign for the economy as well, so the earnings of companies are likely to see even more improvements going forward.
Bond Yields to Start Getting Attractive
Bond yields have generally stayed low throughout QE, making them relatively unattractive compared to equities. Short term interest rates are likely to start increasing in 2015 as well, so as yields increase across the board, current bond prices will take a beating.
It has been difficult to get a balanced portfolio in the past few years due to relatively unattractive bond yields. So for investors without bond allocations, bond yields will finally start …read more
By Belinda Lim
Traveling doesn’t always have to cost a fortune, if you do just a bit of homework. The effort you put in to planning your next holiday can be rewarding when you realize how much you can save. We are not saying to pitch a tent and live on bread during your long awaited holiday, but there are many ways to save on a trip without being a scrooge.
Use Public Transportation… smartly
We all know public transportation would be the cheaper alternative to cabs and guided tours, but take this a notch up and look for deals specially catered for tourists. Most cities offer a tourist-pass that gives unlimited access on their public transport network for a given time frame (usually 24 hours, 72 hours or a week). These passes may seem more expensive than buying a single-ride at first but check again what’s offered. Some of these tourist passes may include free or discounted tickets to museums, attractions and local guided tours. Most passes will also include a printed map and guide that comes in handy when you don’t have an internet connection.
Skip the Fancy Hotels
Unless it’s a business trip of course. Most people …read more