OCBC Bk 4.2%NCPS

Current price at $1.02

• Coupon of 4.2% (regardless of whether there is a redemption)
• Tenure = 2.75 years left.
• Overall yield per annum = min 3.40% (Assuming that OCBC redeem its preference shares after 2.75 years and we book a loss of $0.02 per share)

Looking at preference shares, OCBC looks a good choice if you are able to buy it at $1.02... 3.4% is one of the highest you can find if you compare the different preference shares and bonds. I think further analysis is requried for me to see whether it is worth it to buy bonds/preference shares. This is just one of my analysis.

Just a note... Bonds looks safer than preference shares as they will get the first cut if something bad happens.