Showing posts from May, 2018

Too Greedy about Yield : Hyflux 6% CPS

Yes, this has been one of the hottest topics recently “ Hyflux applies for court supervision to re-organize liabilities, businesses “ ( here ). Thousands of investors will be affected by this sudden collapsed of Hyflux, yes, including Me. Nobody knows how things will turn out eventually under this so-called “ debt’s restructuring “ but I think for sure it is not good for ordinary or preference shareholders who’s typically rank lower in term of debt’s seniority as compared to secured bank loans. Hundreds of millions of bond and perps securities holders will also be affected. In anticipating for the worst, I will need to write off   $114,675.44 from my books as I am holding 1270 units of their 6% CPS. Total cost = $117,816.81 - $3141.37 ( interest received on 25 th April) Enough of warning has been given by analysts, bloggers on the problems of Hyflux in servicing their loans ( including bonds/ perps / CPS ) due to the company’s inability to generate enough cash

Renounceable vs Non-renounceable Rights Issue ( Edited )

< Edited : 17 May 2018> Wow! another Non-renounceable Preferential Offering from Manulife US REIT ( here ) "The Issue Price of US$0.865 per New Unit represents a discount of approximately 7.9% to the volume-weighted average price of US$0.9391 per Unit for trades in the Units done on Singapore Exchange Securities Trading Limited (the “SGX-ST”) for the full Market Day on 15 May 2018." I still prefer the previous rights of "UNDERWRITTEN AND RENOUNCEABLE RIGHTS ISSUE, a  21.6% discount " ... but it seems that the " Non-Renounceable Rights " will be the new trend now. ... image credit to < First published : 14 May 2018 > Recently, it seems that more and more companies are choosing to issue “ Non-renounceable Rights ” in an equity fundraising activities instead of “ Renounceable Rights “ . My friend “ B “from “ A Path to Forever Financial Freedom (3Fs) had just written a good

Fear of Rising Interest Rates

Interest rates increase was really a hot topic in the last two weeks since US 10 Years Treasury Note hits above 3% for the first time since 2014. The market also reacts negatively with full of comments on interest risk due to this increase. 10-year Treasury yield hits 3% for the first time since 2014 from CNN Why everyone is stressing about the 10-year Treasury yield from CNN “Auto loans, home mortgages, and other loans are tied to the benchmark 10-year yield. Investors fear that higher interest rates could start to eat into corporate profits and also signal that more inflation is coming.” This is why everyone is paying so much attention to the 10 years Treasury Note. Some even talk about “ Inverted Yield Curve “ ….
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