investing in bonds are safe and slow
What are Perpetual Securities
- Hybrid form of securities that combine features of both debt and equity
- Won’t be paid on time if Issuer decides to postpone the payments ( But Hylfux has implement a dividend stopper – means if they do not pay regular coupon payment, it will not be able to pay dividend to its shareholders)
- Won’t be redeemed if Issuer decides not to exercise the call option
“Specialist in water treatment and among the top global desalination plant provider. It operates in Asia Pacific, Middle East, Africa and America. Just won the largest “waste-to-energy” project in Singapore. Bond rate will change in 2020 to 6.2%.”
1. Identification of Bond Below par value
- Current market value : 0.968 ( discount of 4 cent) – Thats a capital gain of $40 with it matures, assuming ...
