This is a hasty piece. A compilation of bonds 96 cts and under for your reference.
The prices and yields are all unverified.
Are these the danger bonds ? By no means. Nor are some of them cheap enough to consider buying although my personal benchmark for 10Y Government linked companies would be 5% and junk will be junk unless I see them in their teens.
These bonds are more discounted than the rest because 1. their initial coupons were priced low (on the prevailing low rates at time of issue) and 2. names like Olam and Trikomsel have suffered credit deterioration and thus, spread widening.
I am sending this out because of my concern that perhaps bankers may still try and market some of them at 100 to the unknowing retail folk who is under the impression that bonds operate like fixed deposits and all go at 100.
And doesn’t Guoco still look a tad expensive ?
Just a thought. If Genting bought back their bonds at 91.50, they would realise enough profits for about half a year ? (100-91.50 *1.8 bio)
Disclaimer : The prices are meant for illustration. By publishing this list, I am not advocating that any of the issues are considered cheap. I have no intention of buying any of the aforesaid issues in the near future.