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.
- I'm a remisier with Maybank Kim Eng, 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.