Bonds are in sliding mode across since the word "tapering" surface.

It is price of bonds go down, that sending yield higher.
You don't "enjoy" your bond, when bond yield rising.

I do not see it rise too far.
Just normalise back what it should be.

I do not see how quality bond yield can above 4-5% when there is no central banks around the world is hiking interest, nor concern about inflation.

Very simple.

Axreit DPU is improving over the time, from last time around 13~14 to now around 18 cents.
Somemore, Axreit has shown it has the ability to expand its portfolio that improve DPU and asset base without needing any cent from shareholders nor any dilution effect.

Somemore its portfolio is diversified across, so less rely on single or two tenants, or related party.

Short selling?

Hope people won't be get burn then.

Short selling can be worst than long.

As in long position, the most you loss is how much you pay for the stock.
Aka if you buy Rm1.00, the most you loss is Rm1.00

If you short a stock at Rm1.00, then stock fly to Rm10, you lose Rm9.

Anchovies try to short a stock to make money?
Shark can in return push up the stock price and trap all the anchovies.
Wasn't last time we have second board stock that traded at Rm100? even though fundamental doesn't suggest it worth at that price.
Can shark can hold on the price, and make those short seller life miserable, disregard the fundamental issue of the stock?

Short selling may not something good for anchovies especially low liquidity stock that can be easily influenced by shark one.

This post has been edited by cherroy: Jul 26 2013, 02:45 PM

It is a silly move to depress a good fundamental stock by sell short by shark.

Imagine BAT being severe shorted by shark and plunge to Rm10, how nice....
Doing charity?

How many retailers are winning in derivatives?

I only saw a lot of Ikan bilis bakar last time out when CWs are hot time...

Short selling can be 10x difficult to win as compare long, and its risk is way bigger than long.

Mind can be short-circuited as well when seeing market green green time... joking only.

It is not for weak hearted anchovies.

I played a lot of short in FKLI before.
It is way more "risky" than long.

You may think it is easy to win by short in bear market, but once market turns time, one can be like "ant on the hot pan".

And we do not have any bear market for the last 3~4 years already, so basically (generally or average) most short in the market ended in loss for the last few years.

On average bear market is shorter than bull.
So basically, it gives idea which side have better chance to win.

Short is good for those knowing what they are doing, what their strategy, and in specific period of time.

We have people find difficulty to win in ordinary buy and hold strategy, and want to profit through short is way harder than former.

I think it should be next day, as most use Giro to transfer the e-dividend, so take 1 day to clear.
Correct me if I am wrong.

Giro or interbank transfer need 1 day for clearing, won't be instant.

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

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.

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.

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.

Always dressing, how boring,
when is the day of undressing then?
I am waiting that day.

Joking only.

Like BKawan last few week ago, sell at 30% discount?

Last time out, reit was selling at 7~8%, when I started buying time.
So back to future?

That's why I said again and again.
Cash in the pocket (dividend) is the most realistic one.

One can buy an undervalued stock that give zero dividend, it can forever undervalued, due to whatever reason.
Price no up, no dividend, what investors can do?
Just like can buy a house at Rm100K which is undervalued, but nobody want to rent, nobody want to buy higher than 100k, so everyday just can watch "undervalued".

This option is not available for anchovies, unless one can privatise the company, then it is similar to changing the haunted house into tourist spot.