Tuesday, October 20, 2015

Analysis of Perennial 4.65% 3 Year Bond

Hi everyone,

Perennial Real Estate has launched a retail bond which I thought was quite good but not really good enough. Here are the statistics.

Investment till Callable Date
  • Tenure = 3 years
  • Total Interest = $0.1395 per share
  • Capital Loss = $0.000
  • Transaction Cost = $0.006
  • Overall Return = $0.1335
  • Overall Annual Yield = 4.45%
From the statistics, this is currently the second highest yield bond. The overall yield of 4.45% is only lesser than Aspial bond which is currently trading at 4.8% yield. The good thing is that it is only a three year bond so risk is actually lesser than a 5 year bond.

For me, I wonder. If there is a bond that generates a better yield, why settle for less. Not that this is not good, just that there is something better. Invest only if you want to diversify.

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