Shares & Derivatives
Be Careful if you Bond Leverage with Junk Bonds – the oil and gas case study
By Investment Moats  •  November 26, 2015
It is not fresh news that the oil and gas industry is in a slump due to a secular shift in oil prices. Firings and non-renewal is common. The recent interesting development was Marco Polo Marine refusing to take delivery of a SembCorp Marine oil rig stating that there are defects. There is a stream of announcement from the 2 companies with SembCorp intend to earn the money and deliver without defects on time. On the investment front, if you take a look at the Singapore corporate bond market, there are much juicy bonds yielding 10%. I can envision some rich patrons of private banking being influenced to buy these bonds, and perhaps some would even buy it on leverage. Bond Leveraging is similar to you paying a 20% down payment on a private property that you intend to rent out, and borrowing the other 80% at less than ......
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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