Comments on: FAQ like list from Tan Kin Lian on Minibond issue http://www.investmentmoats.com/budgeting/faq-like-list-from-tan-kin-lian-on-minibond-issue/ Investing in the stock market Fri, 10 Feb 2012 15:38:33 +0000 hourly 1 http://wordpress.org/?v= By: Drizzt http://www.investmentmoats.com/budgeting/faq-like-list-from-tan-kin-lian-on-minibond-issue/comment-page-1/#comment-35620 Drizzt Sat, 01 Nov 2008 10:02:26 +0000 http://www.investmentmoats.com/?p=509#comment-35620 hi dnhh, thanks for evaluating for me. Thats why i say its times a certain metric about the financial situation of the firm going forward. hell if its so easy, then calculating CDS would be much simplier. hi dnhh, thanks for evaluating for me. Thats why i say its times a certain metric about the financial situation of the firm going forward. hell if its so easy, then calculating CDS would be much simplier.

]]> By: donmihaihai http://www.investmentmoats.com/budgeting/faq-like-list-from-tan-kin-lian-on-minibond-issue/comment-page-1/#comment-35619 donmihaihai Sat, 01 Nov 2008 09:40:48 +0000 http://www.investmentmoats.com/?p=509#comment-35619 And on the greed part. It is greed that lead them to buy minibond as other deposit/bond yield type investment is not available with the same kind of return. This cannot be compare with buying equities or commondities. And on the greed part. It is greed that lead them to buy minibond as other deposit/bond yield type investment is not available with the same kind of return. This cannot be compare with buying equities or commondities.

]]> By: donmihaihai http://www.investmentmoats.com/budgeting/faq-like-list-from-tan-kin-lian-on-minibond-issue/comment-page-1/#comment-35618 donmihaihai Sat, 01 Nov 2008 09:34:34 +0000 http://www.investmentmoats.com/?p=509#comment-35618 Hi, On OCBC preference shares and Minibond(if it is really a bond) If this is what Mr Tan with years of experiences in finance industry really think, then it is a sad case. The probability of OCBC collapsing is not 1 or 1/6 for any one bank in the other case. If so then it is like playing russia roulette. And the yields will be in double digit or even 100% for OCBC. Is the 5.1% being reasonable priced? Let not forget that these are priced before current crisis. 1st of all, just by comparing OCBC preference shares with minibond is not justifiable without further information. In fact, if this minibond is from OCBC, I would expect it to yield lower than preference shares, that is how the relationship of these things work. So let say OCBC preference shares are being price "correctly", the yield itself is already saying minibond is more risky. Excluding this crisis, bonds from any six leading well run banks should yield lower than OCBC preference shares or at around the same yield if OCBC has better capital even it is smaller. Hi,

On OCBC preference shares and Minibond(if it is really a bond)
If this is what Mr Tan with years of experiences in finance industry really think, then it is a sad case.

The probability of OCBC collapsing is not 1 or 1/6 for any one bank in the other case. If so then it is like playing russia roulette. And the yields will be in double digit or even 100% for OCBC.

Is the 5.1% being reasonable priced? Let not forget that these are priced before current crisis. 1st of all, just by comparing OCBC preference shares with minibond is not justifiable without further information. In fact, if this minibond is from OCBC, I would expect it to yield lower than preference shares, that is how the relationship of these things work. So let say OCBC preference shares are being price “correctly”, the yield itself is already saying minibond is more risky.

Excluding this crisis, bonds from any six leading well run banks should yield lower than OCBC preference shares or at around the same yield if OCBC has better capital even it is smaller.

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