Showing posts from May, 2018

Too Greedy about Yield : Hyflux 6% CPS

Yes, this has been one of the hottest topic 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 know 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 25th April)
Enough warning been given by analysts , bloggers on the problems of Hyflux in servicing their loans ( including bonds/ perps / CPS ) due to company’s inability to generate enough cash flow to pay for the interest. Therefo…

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. ...

< First published : 14 May 2018 >

Recently, it seems that more and more companies are choosing to issue “Non-renounceable Rights” in equity raising activities instead of “Renounceable Rights “.
My friend “ B “from “ A Path to Forever Financial Freedom (3Fs) had just written a good blog post in explaining how to take advantage and possibility of making some “profit or lowering your …

Fear of Rising Interest Rates

Interest rates increase was really a hot topic in last two weeks since US 10 Years Treasury Note hits above 3%for first time since 2014. Market also react negatively with full of comments on interest risk due to this increase.
10-year Treasury yield hits 3% for first time since 2014from CNN
Why everyone is stressing about the 10-year Treasury yieldfrom 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 on the 10 years Treasury Note.
Some even talking about “ Inverted Yield Curve “ ….
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