Opportunities in retail bonds (June 18)

Astrea IV4.35%B280614 (BTNZ.SI) made its debut in SGX. At time of writing, the last done was 1.035. YTC of 3.34% for 5 years is fair value to me. Rise of interest rates may push down the price in near future.

Which retail bond stands out :

  1. OCC 5.1% NCPS (GG0.SI) looks good with a decent 3.3% YTC. Call date is a short 3 month away on 20 Sep 2018.
  2. Perennial n4.55%200429  (BSKZ.SI) YTM is > 4%. Matures in about 1 year 10 months.
  3. Oxley MTN 5% b191105’s (BJFZ.SI) YTM of 5.34% is preferred to Oxley MTN 5.15% 200518’s (BTNZ.SI) YTM of 4.96%. It has shorter tenor, and yet higher yield. Note that Oxley is considered high yield bond. Their debt to equity at 2.6 is quite high.

All 3 counters can be purchased in SRS accounts. Astrea IV cannot be purchased using SRS.

Note also that I already holding all 4 counters mentioned in this blog. I currently holding all the bonds in the above table except Hyflux and Aspial.

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