OUE Com Reit (TS0U.SI) has fallen 12.5% the past month, is it time to buy?
Almost every other day, the news read something like this :
“Asian stocks decline as trade concerns resurface”. Its getting a bit repetitive.
I was asked for my views of the current market, here is something simple.
I was at the Hyflux town hall meeting last night. It was very well organized meeting by SIAS and Hyflux. I left as soon as the presentation ended without waiting for the Q&A. Its only natural that there will be many disgruntled investors who will want to voice their regrets of loss of savings.
Since Feb 2018, bonds and reits have fallen and have not recovered to Feb highs. With interest rates rising, they have fallen out of investor’s favour. Yet recently, many SREITS are now making 20 day highs, outperforming most SGX stocks. Like wise bonds have recovered slightly after long tenor bonds were beaten down.
I sold ASTREA IV S$242M4.35%B280614 (RMRB.SI) retail bond at 1.05 last friday. Nothing wrong with this bond, in fact, I like this bond (see http://wealthlions.com/2018/06/astrea-iv-4-35-retail-bonds/). 5% is more than one year’s coupon. The money can be channeled elsewhere.
Why I like Astrea IV Class A-1 Retail 4.35% retail bond:
- Indirectly wholly-owned by Temasek Holdings. Bondholders are ranked higher than equity holders.
- Secured bond. Most secured bonds have typically much lower coupons.
- Risks are diversified across 596 companies.
- Beneficial structured safeguards for bondholders
School holidays are over, my kids are in school, and my blogging will resumes! I will now answer some questions posed to me recently.