Wednesday, June 3, 2015

Updates on FCL Treasury 3.65% Retail Bond

Hi everyone,

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.


  1. Hi,

    Am 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?


    1. Hi K,

      I think you are right. Just that I don't invest in Genting. It is a values thing.

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