Perennial fixed return 3 year bond 4.65%

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#11
(13-10-2015, 09:33 PM)SincereKen Wrote:
(13-10-2015, 12:39 PM)butcher Wrote:
(13-10-2015, 09:18 AM)SincereKen Wrote: Indeed, the bond can be appiled thru atm & quite attractive. One may hedge Fed's Interest rate issue against Perennial's bond - same asset class but different value play.

It too acts as cushion against reit's impending decline. 3-year bond is short; 2K for private & 250K for accredited bond investors.

Hi SincereKen, 

I am also interested in the bonds.  

By the way, how are US Fed interest hedged against the bond?

Hi Butcher,

Perennial invested in Real Estate & US Fed interest raise may cost Singapore's Interest Rate (Pegged to US Interest Rate) to rise. The spillover effect is that interest expense/payable from (Leveraged/Gearing) Loan to increase. Reit investors may too find new opportunities instead of this stock.
2 (Direct) Negative Impacts; Potential Reduction in Earnings per share & Decline in Stock/Reit price.

If reit investors still find fundamentals strong, why not lock-in a 3-year bond - a form of corporate loan - to hedge against the aforementioned factors. Bond payment provides fixed coupon rates & maturity par value at the end.

Hope this helps.

Warm Regards.

Disclaimer: DYDD & Above is my opinions, not to be constituted as advice.

Hi SincereKen,

As PRHL is a reverse takeover, no audited financial statemenst publicly available yet, so made my assumptions as follows (no offence):-

1. Assuming if the loans in PRHL are floating with LIBOR as a reference, the increase in LIBOR USD rate will increase financing cost.

2. Your assumption of Singapore Interest Rates increase in conjunction with US rates, I would opine not entirely correlated.  SIBOR have already increased quite some time ago while US rates still stayed put.

3. REITs & Bonds are different asset classes.  If interest rates increases, bond prices fall.  There is no hedge, you suffer an unrealised capital loss theoritically unless hold till maturity.
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#12
http://www.straitstimes.com/business/pro...-its-bonds

Good response. Investors likely persuaded by the big names and solid SG portfolio.
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#13
(25-10-2015, 10:05 PM)slowandsteady Wrote: http://www.straitstimes.com/business/pro...-its-bonds

Good response. Investors likely persuaded by the big names and solid SG portfolio.
did u get all that u applies for?
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#14
(25-10-2015, 11:24 PM)pianist Wrote:
(25-10-2015, 10:05 PM)slowandsteady Wrote: http://www.straitstimes.com/business/pro...-its-bonds

Good response. Investors likely persuaded by the big names and solid SG portfolio.
did u get all that u applies for?

Only got a partial allocation.
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