QUOTE(lklatmy @ Dec 28 2005, 10:26 AM)
If you are looking for yield,there are many loan stock listed in Bursa which give you better interest return than Fixed Deposits. But be forewarned that you also have to take other factors into consideration if you choose to invest in these loan stocks,ie:
1.convertability and the conversion ratio into the mother share,
2.coupon rate,
3.duration to maturity,
4.rated by any rating agency,
5.borrower's ability to repay on maturity (for redeemable loan Stock)

QUOTE(dreamer101 @ Dec 28 2005, 01:42 PM)
Yes, there might be many many other alternatives that give better better yield BUT it is at significant higher risk than Public Bank Share.
Could you suggest/recommend/show an example of a loan stock that give better yield at not much higher risk than Public Bank Share?? Please noted that Malaysia will not allow Public bank to go bankrupt not matter what. Does the same thing apply to loan stock??
Please educate me...
Dreamer
I thuoght I was quite clear in my posting that there are several other factors to be taken into consideration when investing in loan stocks.
Of course,risk wise,it is much much safer to invest in Public bank and no one will doubt this.
In the abv posting,the first line itself I made it clear that if one is looking for YIELD,you can consider Loan stocks and I am not proposing that loan stock is in anyway safer than Public Bank.that's not what I meant and I apologise if my posting led you to that.
For discussion,let's look at Jetson loan stock.The price now is 60 sen and the coupon rate is 5%.That means for every Rm600(not including cost of acquiring)invested,the yearly interest receiveable is Rm50 and that is a return of approx. 8.5%.notwithstanding this ,if the price of the mother share goes down,you will lose out because the price of the loan stock should move in unison.Conversely,if the price of the mother share goes up,you will enjoy capital appreciation.
(Disclaimer:this is not a recommedation on the above securities and I am not responsible if any loss is suffered by any person due to this article/posting)