Depends ……
Today, there was a new issue of GSH senior bond. For those who is not aware, the major shareholder of GSH is “poppiah king” Sam Goi.
This is a bond that is very well designed. I would have bought it – if it can be supercharged (leveraged).
I really like the following clauses that is inbuilt into the bond:
- If Sam Goi and his immediate family members cease to own in aggregate at least 35% of the issued shares of GSH, this bond will be called back at par.
- If GSH shares is suspended > 10 consecutive working days, this bond can be redeemed at par.
These are great terms offered by a rich businessman for lending money to him. Gives added peace of mind.
Very unfortunately, it cannot be supercharged, so I will not be buying. If i have S$250,000, I would rather buy 3 lots of OUE 4.25% 2Y (supercharged) rather than 1 lot of GSH 5.x% 3Y.
- Higher net yield
- This OUE bond has call dates every 6 months that gives added protection price from falling
- Option to buy 1 lot ($80k) or 2 lots ($160k), rather than to commit $250k into 1 counter.
- Better credit quality
- Assets that I can touch and feel
- 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!
- WealthLions is my blog where I journal my trading ideas and share my opinions about the markets. If you like to be kept posted of my new blog posts and events, please join my Telegram Channel and subscribe to my mailing list. No spam, I promise.