Shares & Derivatives
Frasers Centrepoint’s Perpetual Bonds.
By A Singaporean Stockmarket Investor (ASSI)  •  March 3, 2015
A reader sent me a note in FB today, asking me what I thought of this: FRASERS Centrepoint on Monday is selling Singapore dollar perpetual bonds, the first perpetual deal in 2015. A term sheet seen said that the SGD subordinated Perp NC 5 has an initial price guidance in the low 5 per cent. NC 5 means that the perpetual bonds will not be recalled before year 5. Source: The Business Times. Well, I would generally avoid long term bonds especially since I believe that interest rates are more likely to go up than not from here on. With perpetual bonds, there isn't any maturity date. So, they are more long term than long term bonds. There isn't a date when the bond matures and when the principal is returned to the bond holder. Having a maturity date when the principal is returned to the bond holder is a feature that makes bonds safer......
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By A Singaporean Stockmarket Investor (ASSI)
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