Shares & Derivatives
Aug 2016 Portfolio
By myCreative Investment and Trading  •  September 1, 2016
Recently, DBS got scarred by Swiber bonds when it filed for bankruptcy. This incidents opened up a can of worms, it seems that DBS are doing leveraged Swiber 7% bond sale for its wealthy customers. Eg it allows 50% loan for its customers who buy Swiber high dividend bond if they buy at least $250k worth of bond and DBS will lend them another $250k, total $500k to buy Swiber bonds. Customers will then earn dividends on the leveraged bond. Pretty good idea right? But of course the unexpected happened when oil price sinked and Swiber wind up. DBS had a 6% dent in its profit and this caused its share price to drop below $15. Then I see it as a good opportunity to buy DBS! haha crazy right? This is my first bank stock and I think that this Swiber incident will just be a scratch to DBS ......
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By myCreative Investment and Trading
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