Replacement idea for Oxley 5% retail bond

Oxley MTN 5% b191105 (BJFZ.SI) retail bond will be maturing today. What shall I replace it with?

I have avoided Aspial for many years. Although I am biased against Lee Hwa Jewellery, the main reason for my dislike was the negative cash flow from operations. However, I was pleasantly surprised to see that Aspial may be turning around because of their foray into properties.

Even their gearing seems to be falling:

Both Aspial 5.25% and 5.3% has tenor less than 1 year and YTM of between 7 to 8%.

The calculations in this table already includes the worst case online commission 0.275% and SGX fees.

For example, buying the AspialTrea 5.3%b200401 (BRQZ.SI) at the last done price of 0.988, the net annualized yield of holding till maturity in April 2020 is 8.76%. This is about 4.4% return for a holding period of 6 months.

I probably will buy some Aspial bonds to replace my Oxley bonds. These are money sitting in my SRS account.

I really do not like Aspial, but i doubt Aspial can do a Hyflux in 6 months, considering their last released results.

Before buying, please take note that Aspial is a highly leveraged company that may not be suitable for your investment objectives, financial situation and particular needs.


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