Low risk 6% to 8% return in 11 months

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  • Stock name : Hyflux 6% CPS 10
  • Stock Code : N2H
  • Call Date : 24 Apr 2018
  • Reset : 8%
  • XD Dates : Apr and Nov
  • Can buy uisng SRS account
  • Can supercharge in grade based margin account at 2.88%
  • With 11 months, my speculation is that the price will hoover slightly above par for the next 11 months.
  • Question to ask :
    • What are the chances Hyflux defaults in 11 months?
    • Will Hyflux call back this bond or will they choose to pay 8% coupons from 2018 onwards?
  • I'm a remisier with Maybank Securities, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please open a trading account to become my client; It's free!