SGD Bonds : 2014 Hall Of Shame

A friend was complaining to me about some prices that are not holding up to screen levels.

Being a savvy investor, he checked the Bloomberg price before asking for a bid only to be told that it was over 1 ct lower and another bank claimed that they had forgotten to remove their bid because they cannot buy the paper.

I took the liberty to prepare the 2014 bonds that are underwater ie. below their issue price. Err, ok, I did not. It was kindly contributed by a concerned friend.

These are the best screen prices we can salvage (which are potentially not tradeable ONLY ON THE BID BUT THE OFFERS ARE GOOD).

Here goes.

sgd 2014 hall of shame

Worst performing is Swiber 5.55% issued back in April. This is closely followed by Geo Energy.

Note that most of the names are local small cap companies in the O&G, shipping, real estate and commodity sector.

There is really nothing much investors can do because names like Geo Energy are priced by just 1 or 2 banks at most and their appetite to buy any paper is limited to usually 10% of the issue size or less.

As for buyers, I suggest that buy levels should be on the BID PRICE rather than lifting the offers. And I daresay, you will be hit !

Good luck !