UOB 5.05%NCPS 100

UOB 5.05%NCPS 100

• Coupon of 5.05% (regardless of whether there is a redemption)
• Tenure = 8 years left.
• Overall yield per annum = min 2.78% (Assuming that UOB redeem its preference shares after 8 years and we book a loss of $6 per share)

After looking at the different preference shares and bonds, I have come to a conclusion: those preference shares whose yield doesn't drop after so-call "redemption date" are the attractive ones because the price of the preference shares are more likely to be stable.

Therefore, I have narrowed my choice to 4 preference shares, three from OCBC and one from UOB. Someone from Channelnewsasia Discussion board has highlighted to me that the tenure is only 3 years instead of 8 years as discussed earlier... I realized that it is wrong so here is the adjustment... With the overall yield at 2.78% instead of 4.04%, I realize that it is not worth it to buy this preference shares...