[Gstalk]

OCBC prices $550 mil worth of perpetual capital securities with 4.50% coupon

https://www.theedgesingapore.com/news/ba...450-coupon

[hansamu]

4.5% not attractive at all in today's market...not worth the risk. 

Not for me. Rather invest in shares.

[talky]

4.5% not attractive at all in today's market...not worth the risk. 

Not for me. Rather invest in shares.

this is for institutional investors not for retailers.minimum 250k

[hansamu]

I guess if retailers have 250k they can still buy.

I remember a RM told me so.

[sgbuffett]

You buy hong leong finance stock dividends is 6% per year...and their cash pile means it is sustainable for long time.

[K88 shu shu]

buy bitcoin huat 10 times, 100 times.

[starbugs]

This clause is concerning. It's similar to what caused Credit Suisse bondholders to lose all their money. The OCBC coupon rate is far too low in this regard.

As a Basel III capital instrument, if the bank is determined by the MAS to be non-viable, the capital securities will be written off in whole or in part. They may be subject to cancellation, modification, conversion, change in form, or have the effect as if a right of modification, conversion, or change of form had been exercised by the MAS under Division 4A of Part IVB of the Monetary Authority of Singapore Act 1970 of Singapore without prior notice.

[sgbuffett]

What are the rules when it comes to personal?

1. Can OCBC redeem at anytime or there is a min period they have to keep the perps?

I see it as disadvantageous to holders ....when interest rate go down they can redeem, if interest rate goes up they can keep the perp ..so they have all the advantage

[hansamu]

Perpetual means forever....lol