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Since I started this career, I feel empowered and fulfilled as I help my clients navigate this period of increased volatility and guide them...

Tuesday, October 4, 2016

Bond investing? Is it really safe?

Dear friends,

I like to share this article from Bloomberg that highlights the fact that many investors are better off investing their time looking for a reputable professional to handle their funds,capital or retirement fund. It seems most investors could be hurting themselves more than they think.

First was the mini bonds episode, now we have Swiber defaults and more to come. It seems that most of such "exotic structured products" have been sold to the retail investors by the banks.

In their chase for low fees and so call guarantee returns, it may be best for investors to seek out a reliable and trustworthy professional to avoid such silly mistakes.

To sign up for such services, kindly contact me via email at ericohlh@gmail.com.

On top of  investment advisory services, I also provide Life, Health and retirement insurance with general insurance needs such as travel, car, property insurance, etc to provide a holistic approach in investment, protection and retirement needs.

Fyi

Singapore Millionaire, 77, Joins Bondholders Who Want Demands Heard

SINGAPORE (Oct 4): Jerry Tan, a 77-year-old retired Singaporean businessman, was among dozens of bondholders in the city who joined forces last week to submit their demands as more companies seek to restructure debt payments.

“The only way to put ourselves in a position of some strength is to come together as a group,” said Tan, who said he owns more than $8 million of notes. “The whole bond market is really bad and you can expect a lot more defaults. The authorities should step up to protect investors and Singapore’s reputation as a major financial center.”



 For details: click here

Thursday, September 1, 2016

Bonds safe? What happens when they default

Singapore millionaires stung by the misery of recent bond defaults now have company as the fallout threatens losses for mom-and-pop investors. All four new issues of Singapore dollar-denominated notes targeted at individuals this year have dropped below the par sales value, as failures in the broader market stoke speculation nonpayments will spread. UBS Group AG’s wealth management unit said in an Aug. 16 report that retail investors are being sold "weak" names, and Lombard Odier said they face default risks on securities with poorer credit profiles.

For more information click below link:
(Singapore Mom-and-Pop Investors Face Losses Amid Bond Risks )



Fyi

Bonds are financial instruments where investors are compensated for their time and opportunity cost when they invest in them.

Unknown to many investors, bonds do go into default. This means the company that issue the bonds does not fulfill its  obligation of paying the coupons. When this happens the status of the bond could be downgraded to junk status and price of the bonds will drop. Hence, the investors will not be able to recoup its principal amount as there is a pay out priority given as below:
  • First are the secured creditors and holders of senior debt,
  • Next are the the ordinary bondholders
  • Equity shareholders are last in line

As a result of the default, a bond will either be restructured or the company will file bankruptcy and results in liquidation of assets.

Hence, if a investor has a huge capital for investment, he or she will be wise to consult a professional who could advise him in the appropriate manner to invest in bonds, equities (stocks) or mutual funds as each asset class is important to achieve  a desirable  outcome.

If you need advise or help in this area for investment, protection needs or growth, please contact me by leaving your contact on the right.

"Wealth is not built overnight but over time."

Tuesday, August 16, 2016

Market Sentiment in today's market

Dear friends,

Current market remains muted. Pockets of opportunities exist if you have been following my blog or emails.

If you have problems deciding what stocks to buy or sell, pls contact me using the form on the right.

If you are my existing clients, you should have received my email and messages to be able to respond tactically in this market environment.

Cheers
Eric