Just an update on the FCL Treasury 3.65% 7 year Retail Bond.
- Price on 29th May 2015 = S$1.007
- Interest = S$0.0365 per share
- Yield = 3.625%
Investment till Callable Date
- Tenure = 7 years
- Total Interest = $0.2555 per share
- Capital Loss = $0.007
- Transaction Cost = $0.006
- Overall Return = $0.2446
- Overall Annual Yield = 3.440%
In my previous post, I have mention that it either follows the yield that is closer to Genting SP5.125% or CapitaMall 3.08% Retail Bond which means the price ranges from $0.98 to $1.04. Well the price seems now to hover just right between them at $1.007.
This is something which I don't really understand because FCL Treasury has the backing of Fraser Centrepoint which is by far one of the household blue chips that we know. Thus, there should be a premium attached to it. However, as of now, it is not moving up as much.
Well, there seems to have a competition of funds at this point with FCL Treasury rivaling Hyflux CPS 6% and OCC 5.1% all which has a shorter tenure and giving at least 3% yield and therefore look more attractive.
I have gotten 10 lots from this and will hold on to it at least until next year. It serves as part of my family cash reserve which I am trying to build.
This is something which I don't really understand because FCL Treasury has the backing of Fraser Centrepoint which is by far one of the household blue chips that we know. Thus, there should be a premium attached to it. However, as of now, it is not moving up as much.
Well, there seems to have a competition of funds at this point with FCL Treasury rivaling Hyflux CPS 6% and OCC 5.1% all which has a shorter tenure and giving at least 3% yield and therefore look more attractive.
I have gotten 10 lots from this and will hold on to it at least until next year. It serves as part of my family cash reserve which I am trying to build.
Hi,
ReplyDeleteAm I calculating this correctly?
Genting SP5.125% @ $1.056 is giving a yield of 4.85%
CapmallA3.8% @ $1.031 is giving a yield of 3.26%
FCL3.65 @ $1.018 is giving a yield of 3.35%
So, if I do not believe Genting will go bust, it would be better to put my money with the Genting bond?
Thanks.
Hi K,
DeleteI think you are right. Just that I don't invest in Genting. It is a values thing.
backdrop Singapore Yes i am totally agreed with this article and i just want say that this article is very nice and very informative article.I will make sure to be reading your blog more. You made a good point but I can't help but wonder, what about the other side? !!!!!!Thanks
ReplyDelete