QUOTE(gracelim2202 @ Mar 21 2014, 11:30 AM)
Hi have been following on and off in this thread.
Mind to share, how "heavy" is the US10Y influence on local REIT, particularly IGBREIT?
Sorry...i share example of AYAM and AH KUA
We made few character
USA AYAM =US10Y
M'sia AYAm = MSG10Y
Ah KUA = MReits
Uncle Ben= FED
In 2008/209 US facing Financial Crisis, to made the US economic good they need the US AYAM cheap so they create QE3 drug. When cheap and high voulme Qe3 drug in the WORLD, therefore investor will hv more money to HAPPY PARTYING buying stock at Develop conuntries stock examply of AH KUA become overprice in 2010-2012
When USA AYAM yield become lower mean AYAM is Old aunty and no standardy anymore.
No investor also looking for better service for the same amount.
Investor flock to AH KUA paying the same price, for old aunty AYAM yeild meh.
When USA economic good 2012/2013, Uncle BEN want USA AYAM want to raise Yield to slow down the Losse credit aka QE3 drug.
Econmic Good already;still want give cheap AYAM meh..Uncle BEN decide to increase USA AYAM Yield . Only that..investor dont over or slow HAPPY PARTYING to the market or call Ah KUA. All the money back to USA AYAM.
When US AYAM raised Yield..our M'ISA AYAM also want to raised the Yield aka BNM MSG 10Yield.
Becoz those USA AYAM increase mean pretty and better service sure those extra money earn or borrow will flow back to USA AYAM which more stable and pretty.
USA AYAM is higher giving more servies the same amount for Ah KUA still need to call AH KUA meh ...
Hampsap sure want AYAM which HOT and SExY one

the reason AYAM USA increase.
AH KUA cant give such service as AYAM, then AH KUA need to give cheaper price.
M'sia also kiasu increase M'SIA AYAM too loh.
When M'SIA AYAm yield also increase, do you still want to find AH KUA meh ?
When AYAM giving more and AH KUA giving still the same yield..still want the money keep buying at AH KUA..sure go find M'SIA AYAM.
Now you know when AYAM is high..sure ppl will find them, and AH KUA will go down now..as not giving attrative dividend for keeping Ah KUA compare Keeping AYAM
This post has been edited by felixmask: Mar 21 2014, 01:32 PM