Singapore Government 10 year bond as Collateral

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#1
Does anyone have experience with using 10 year bond as collateral to secure a loan? Lets say the 10 year bonds are worth 1 million what is the loan amount i can obtain?

Also what will the interest rate be like(similar to mortgage loan)?

Also what are the things one should take note of?
Reply
#2
Yes you can use them as collateral, but the bank will not value it at Face value. Usually 95% of face value. Interest on the loan is between you and the bank to negotiate.
Reply
#3
Yes you can use them as collateral, but the bank will not value it at Face value. Usually 95% of face value. Interest on the loan is between you and the bank to negotiate.
Reply


Forum Jump:


Users browsing this thread: 3 Guest(s)