tomorrow there is probably quite a bit of durian runtuh...
who dare to catch ?

If it happens like Rupiah & Indian Rupees, BNM would be forced to raised interest rates which would result in the fall in bond prices in order to make up the yield.

If want to buy directly, can approach investment banker.
They do offer such a service.

There are more and more retailer bonds in the market nowadays, even for overseas banks/corporate bond.

Having said that, I do not think bond is a good target at the moment.
When yield is rising across, bond price may have some difficult time eventually, affect existing bond fund performance.


This post has been edited by cherroy: Jul 30 2013, 09:57 PM

From Business Times today,
"The government sold RM4.5 billion of 2020 securities today at 3.889 per cent, according to data published on the central bank’s website. Demand exceeded the amount on offer by 1.91 times.

The ringgit was little changed at 3.2253 per dollar in Kuala Lumpur, compared with 3.2260 yesterday, according to data compiled by Bloomberg. It earlier fell as much as 0.4 per cent to 3.2379, the weakest level since July 2010. The currency lost two per cent in July and 5.2 per cent this year."

Maybe, the bloodbath could be averted.

Bond fund NAV is based on market price/valuation of the bond.

For eg.
A 10 years bond can be issued at Rm1.00, with yield 8% previously.
Now can become Rm1.05, due to low interest rate environment.
So bond fund NAV will be based on Rm1.05.

You hold it until mature, the bond will return to you at Rm1.00, so it doesn't necessary you must gain when hold on maturity.
As current pricing of bond is taking account into the maturity situation already.

Investors just demand a higher rate, it doesn't mean there is no demand.
Quite norm, considered that worldwide bond yield is rising across.

I do not see any major concern on this.

The major concern is gov need to reduce its budget deficit.

All the more haste towards GST implementation.

i thought rate increase...those reits shift to bond for better yield?

1) why you said bond is not a good move ?
2) why you said bond price may have some difficult time ?

Time to reimpose capital control again?

Bond price rise when you have low interest rate, low FD rate, low gov bond yield.

Bond price drop when people expected other asset class may provide better return.
If gov bond now is 3.9%, you think a corporate bond that offer 4%, people want to buy?
surely risk and reward is not correct.
Investors now may demand the corporate bond at 5% to justify the risk they are taking.
So the corporate bond price will drop and become a % yield.

Bond like QE, cheap interest rate, liquidity, which make the bond price rising.

Bond doesn't like tightening, hike in interest rate.

Hi Cherroy,


is the time keeping cash/fd the best ? while waiting the whole world financial investment gradually correction aka QE tapering?


Cheer,

This post has been edited by felixmask: Jul 30 2013, 10:20 PM

unworkable. Even in 1998, the implementation of capital controls coincided with the Fed lowering US interest rates. World markets rose in response to the move. The S.Korean Won rallied on the news. The move renders capital controls unnecessary.
Dr M claimed victory which never was. The crisis in M'sia is due to its failed economic policies and not Soros which to this day the government of the day did not want to ackowledge.

All these are well documented today and you can find books on this subject.

If QE tapering does send bond/reit and stock market into a big correction, then the answer is yes.

Waiting at bottom to collect cheap price.

But nobody has the crystal to know it.
The tapering issue may overcooked, as I do not see Fed will raise interest rate for the near term of coming 2-3 years down the road.
Unless the new Fed chairman has other idea.

Same with local front interest rate, I do not see BNM raise rate when export is slowing, GDP number is at modest growth.
Unless RM facing severe headwind issue, which I do not forsee it for near term as well.

RM is not freely traded at overseas since 1997, so don't need capital control to prevent rampant outflow or speculative activity.
Somemore, BNM foreign currency reserves stood at more than USD100 billion now, situation is not the same with 1998.

There is reason why RMB still reluctantly to be open freely traded at overseas, like USD.
As if when your currency can be opened and freely traded outside your border, you may not have proper control on it.
Hedge fund, speculators that come with billions of funds can easily pounds on your currency and make worst the situation.

the same reason behind BNM dont raise interest OPR, even the property price shoot up same like Uncle BEN at Fed


I must watch youtube to understand each Uncle Ben movement..really impact the world..follow on what he doing.

thanks the infor..Good nite.

This post has been edited by felixmask: Jul 30 2013, 10:38 PM

Right, same as my guessing. So, it's just the NAV, and the NAV can move according to the bond market. In this case, if bond yield at high and our bond fund at low, that pretty much implies the NAV representing a "cheap bond" with high yield, which could be good to buy. Anyway, if yield raise all the way to our magic number 4.5%, then probably the time to buy bond fund has arrived...

Can someone recommend books to learn about bond?
I am not into bond, yet. But I want to know how bond affects stock market.

why presbhd never slow down? like that how i buy 2nd batch?

very hardworking!
next time teach us here.

https://research.stlouisfed.org/pageone-economics/

Found this while reading an email this morning. Seen FRED before but I was not so interested then. Mainly US data but some international data if you searched hard enough.

Enjoy!