hi sifu gark...
i tried using the calculator.. but i'm getting 2.38% YTM...
do u know where i got it wrong ?




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you need to put payment as annual because the 4.58% is annual rate...if you want to put payment semi-annual, then the interest rate is 4.58/2

This post has been edited by gark: Nov 30 2013, 09:39 AM

Seriously...4.5% YTM with practically zero capital appreciation...worth meh?

Well then.... why is 60% of your portfolio in BONDS if you think 4.5% with zero capital appreciation is not worth it.. It's almost the same de mar...

Potential capital gain do exist, if MGS yield goes back to below 3.5%...

This post has been edited by gark: Nov 30 2013, 11:34 AM

Yahor...my portfolio IRR from commencement to-date is only 5.5%

Ahem, I'm 60 EQ:40 FI now

This post has been edited by Pink Spider: Nov 30 2013, 11:43 AM

So the reason people buy this bond is same as you, for portfolio diversification.. but then again i think REIT is better than bond for portfolio diversification.

Sure REIT have slightly higher risk, but you are compensated with +100-150 bps yield. Also depending if you choose strong REITs, you chance of reducing rental is very low. Strong REITs are mostly mall reits, long term contract REIT (healthcare for example) which still do well even in the period of recession

Both BONDS and REIT move in tandem with MGS yield, BUT REIT can actually raise rental (hence matching inflation)...but bonds cannot do so. ALSO REIT price is more fluctuating and falls together with other stocks during recession EVEN THOUGH income does not drop. This can become a good entry point to lock in higher yields. BONDs role is more capital preservation rather than matching inflation...

That's is my 2 sen, but I agree that you do need some bond for diversification, but it is best done through a bond fund rather than individual bonds as the risk is more spread out and you get slightly higher yield.

This post has been edited by gark: Nov 30 2013, 11:51 AM

Judging from the aggressiveness of the outflow of funds, I do not think there are lot of opportunity for the Capital Gains in the near future.

Not in near future.. but then again this is a 15 year sukuk.. long time for it to either fly or drop into longkang.

Even fly how high also max 5%-10% gain only... drop also the same 5%-10% drop max...

This post has been edited by gark: Nov 30 2013, 12:01 PM

Hold to maturity...certainly won't lose money (except default)

15 years wor.. old man de.. that's why better buy diversified bond funds.. after 1 year want to lari also easier...

the drop depends on how good the Govt can do its budgets.............so hard to say there is a max cap there in the long run.......

Haha.. if MGS yield >10% like some africa country..then I am sure the sukuk will be -50% discount... but can this happen?

This post has been edited by gark: Nov 30 2013, 12:08 PM

I sense Indonesia is in that direction , but investors would throw if any one Asean country suffers badly.........

Are we like German in Euro

This post has been edited by SKY 1809: Nov 30 2013, 12:12 PM

The disadvantage of this bond is lack of liquidity.
Not easy to "lari". except at good discount.

Locally market, retail bond market still lack of liquidity, sadly to say.
If got good liquidity, it can be a good alternative place for some fund "parking" diversification for retailers.

Yes
Tranche 1 price is 0.10 cheaper than Tranche 2

Profit payment in respect of the Exchange Traded Sukuk for the period from 12 August 2013 to 10 February 2014 (182 days), calculated based on 4% per annum on the nominal value and on the basis of the actual number of days elapsed and 365 days (actual/365 days)

EX-date 05/02/2014
Entitlement date 07/02/2014
Payment date 11/02/2014

http://www.thestar.com.my/Business/Busines...ukuk-this-year/

DanaInfra may issue two listed sukuk this year

KUALA LUMPUR: DanaInfra Nasional Bhd, created by the Finance Ministry to raise funds for the country’s largest infrastructure project, may issue and list on the stock exchange this year as many as two Islamic bonds worth RM100mil each, according to a Bursa Malaysia official.

“We are in engagement with them, and definitely we will see at least one or two issuances this year,” Jamaluddin Nor Mohamad, head of Islamic and alternative markets at Bursa Malaysia, said in an interview.

The expected issuance was necessary to promote Bursa Malaysia as a market for retail sukuk, he said. DanaInfra is so far the only institution to have issued sukuk on the bourse’s Exchange Traded Bonds and Sukuk (ETBS) platform.

DanaInfra raised RM300mil with a 10-year sukuk in January 2013 and RM100mil with a 15-year sukuk in October.

The issues targeted retail and corporate investors with limited access to the over-the-counter (OTC) market in bonds, where investments must be done in large minimum sums. Proceeds of DanaInfra’s issues go towards extending the Mass Rapid Transit network to cover the Klang Valley and Kuala Lumpur conurbation.

DanaInfra’s sukuk issues this year would serve to correct a ”negative perception” that ETBS bonds were more costly than raising funds on the OTC bond market and equity market, Jamaluddin said. DanaInfra’s debut sukuk, the first on ETBS and an entirely new type of product, had to be priced at a premium to attract investors

“It was a one-time decision by the issuer for the inaugural issue. The message we are sending out is that premium pricing is not the only way out, or you don’t have to go down that road,” he said.

DanaInfra’s second sukuk, priced based on OTC rates, was oversubscribed 2.19 times. Bursa Malaysia is now courting several financial institutions and government-related agencies to be issuers on ETBS.

“We continue to engage corporates on a direct basis, and explain all these intricacies and also put forward the incentives that have been put in place by the Government,” he added.

Issuers enjoy a double deduction on expenses and are exempted from stamp duty until 2015. “What we want to achieve here might not be reflected in monetary benefit on an immediate basis – this is a long-term commitment,” Jamaluddin said.

DanaInfra, in an e-mailed statement to Reuters, said the major challenges had been educating retail investors about the general structure of sukuk, and the net benefit of investing in DanaInfra relative to other products. – Reuters

First profit payment in respect of the Exchange Traded Sukuk for the period from 31 October 2013 to 30 April 2014 (181 days), calculated based on 4.58% per annum on the nominal value and on the basis of the actual number of days elapsed and 365 days (actual/365 days)

EX-date 25/04/2014
Entitlement date 29/04/2014
Payment date 02/05/2014

The details and timing of events leading up to the listing of the Third DanaInfra Retail Sukuk
are as follows:-
Amount : Up to RM100,000,000.00
Nominal Value
Tenure : 7 years
Profit rate : 4.23% per annum
Opening date for Danainfra Retail Sukuk offering : 21 July 2014
Closing date for Danainfra Retail Sukuk offering : 15 August 2014
Listing and commencement of trading : 27 August 2014

DanaInfra sells RM2.5bil sukuk for MRT project

The sale comprised a RM1.6bil sukuk, RM300mil sukuk and RM400mil sukuk with tenors of seven to 20 years, reported IFR, a Thomson Reuters publication.

The finance ministry has authorised DanaInfra to raise a total of RM8bil by selling sukuk.