Analysis of Hyflux 6% CPS 10 (A relook)

• Current Price = $108.40
• Interest = $6 per share
• Yield = 5.535%
• Credit Rating = None

Investment till Callable Date

• Tenure = 5.5 years
• Total Interest = $33.00 per share
• Capital Loss = $8.40
• Overall Yield = 4.126%
• Interest Rate after Callable Date = 8% (Assuming they don't redeem at callable date)

I am relooking at this preference shares for myself to place my cash reserve (currently I have some cash which I need to park it somewhere). Looking at the low interest rates and the current yield of the preference shares issued by banks, it is getting a little bit more tricky to get a good yield. Thus, I am relooking at this preference shares to see whether I can get a decent yield.

With a tenure of 5.5 years, it seems long and good for a long-term bond with a yield of 5.535%. However, the problem is its pricing which is at a premium of $108.40. I am looking at buying it after "CD" where I assume that it will drop by $3 and that should reduce my buying cost. This seems to be the best in the market and it will get better if they don't redeem at callable date. But I am sure that they will redeem it back once it is up.

That is my plan for Hyflux 6% CPS 10. I am still quite a novice for this so I hope that I am right.