W/O selling Bonds back to MAS, CPF Board sitting on shitty SGS Govt Bonds revaluation with $5/6 Bil losses.
Certainly, CPF CEO cannot be so gullible?
Today's Bond yields has gone up so high, why CPF Management still holding tightly and not selling them back to MAS much earlier.
It's getting from bad to worse so, Who carries those losses?
.
Do CPF members feel CPF CEO is incompetent for various reasons?
1) Extended low OA interest rate @ 2.50% for much too long not inline raising inflation
2) Ad hoc impromptu allowing OA transfer to OCBC FD @3.40%>( higher than OA 2.50%)
3) despite using UOB rate as benchmark, yet not allowing OA transfer to UOB FD @3.95%
4) Discriminating against UOB seems abusive
5) Not selling O/s SGS low yield Bonds back to MAS shows lack of market knowledge
Do we have to say more?
Giving low rates then can use the money invest in higher yield t bills then earn 1.6% like broker fees then giving sinkies 2.5%. lol
(18-11-2022, 07:01 PM)sogo Wrote: [ -> ]Giving low rates then can use the money invest in higher yield t bills then earn 1.6% like broker fees then giving sinkies 2.5%. lol
Problem with CPF Board is the Assets side stuck with between $400 Bil and $500 Bil very Low yield SGS Bonds compare to market value.
Revaluation 2022
$400 Bil @ 1.50% loss $6.5 billion
Why sitting on shitty rotting SGS Bonds?
CPF Board Sitting on a shitty rotting SGS Bonds revaluation constraints hiking OA interest rate to a more realistic 3.50% pa
Clearly, CPF CEO is stuck between a rock and hard surface.
(18-11-2022, 07:01 PM)sogo Wrote: [ -> ]Giving low rates then can use the money invest in higher yield t bills then earn 1.6% like broker fees then giving sinkies 2.5%. lol
T-Bills at 3.77% yield – Must buy with CPF money? … Better than Singapore Savings Bonds / Fixed Deposit?
By Financial Horse- October 22, 202231
The latest T-Bills yield 3.77%.
While CPF-OA yields 2.5% (after the first $20,000).
bonds is actually loans or borrow money by government. because it is a loan, it carry risks. Buyers when buying bonds are actually the lenders and as such they have to accept this risk. just like banks accepting bad borrowers, investors have to understand and accept this fact. They give it a fancy name called bonds, they are actually IOUs. Many rich ppl including my wealthy uncles kena from USA bonds in the 90s. Even the financial textbooks also try to cover this real definition.
Really ... wa ... sure or not ... who buy sgs bonds ... where is the % breakdown amd in whose hands ... no one sweating ... no eye lids twitching ...
(21-11-2022, 09:57 AM)red3 Wrote: [ -> ]Really ... wa ... sure or not ... who buy sgs bonds ... where is the % breakdown amd in whose hands ... no one sweating ... no eye lids twitching ...
CPF Board uses CPF contributions solely to buy Govt SGS Bonds from MAS
(21-11-2022, 06:10 AM)*天哥* Wrote: [ -> ]bonds is actually loans or borrow money by government. because it is a loan, it carry risks. Buyers when buying bonds are actually the lenders and as such they have to accept this risk. just like banks accepting bad borrowers, investors have to understand and accept this fact. They give it a fancy name called bonds, they are actually IOUs. Many rich ppl including my wealthy uncles kena from USA bonds in the 90s. Even the financial textbooks also try to cover this real definition.
No banks or financial institutions with SGS Govt Bonds portfolio holding on to their low yields and not selling them at the first sign of higher interest rates and inflation.
He/she will be sacked