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How To invest in Bond(not bond fund)?
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TSkelvintan_mobile
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Jul 26 2007, 10:49 PM, updated 19y ago
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i need to get something clear about bond, and i dont find this topic around this forum , so i post this here.
How do u buy corp bond in malaysia? as fast as i know financial institutions in malaysia offers bond fund , which is the fund manager pool the money to spread among differnt corp bonds... how if i specifically wanna buy a lets say xxx.bhd bond? how do i do it? thanks for enlightening me.
Best regards KelvinTan
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scorgio
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Jul 26 2007, 11:27 PM
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Most of the time, it's not offered to the general public.
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athlon 11
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Jul 27 2007, 02:37 AM
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some bank have sell bond directly to public too.but according to forumer here,the investment cost is not cheap,generally rm200k++ ,except the merdeka bond.
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TSkelvintan_mobile
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Jul 27 2007, 07:57 AM
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merdeka bond?? what n how to buy that?
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shih
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Jul 27 2007, 10:06 AM
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Bond is an investment instrument also, but it is very difficult to take care of it when the interest rate fluctuates. Normally, the amount to buy a bond is huge, not a good move.
Bond seldom sold in public. I guess you have to find out why?
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GSPierre
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Jul 27 2007, 11:12 AM
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yea.. generally they will corp bond will offer to those fund management company as they are very large amount. hence u can only get it over those mutual fund.
unless you are very rich ahaha
Added on July 27, 2007, 11:12 amBank Negara 's bond is different story though
This post has been edited by GSPierre: Jul 27 2007, 11:12 AM
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TSkelvintan_mobile
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Jul 27 2007, 02:08 PM
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erm , coz i had been reading than americans could buy bonds independently but in malaysia dont think so .. just wondering n learning , lol thanks
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1stLaksamana
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Jul 27 2007, 02:20 PM
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if i could buy bond, i would've grabbed singapore genting sentosa bond offered sometime back.
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ejleemy
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Jul 27 2007, 02:30 PM
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Too bad we do not have a designated market/exchange for bond trading.
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KingRichard
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Jul 28 2007, 08:21 AM
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QUOTE(kelvintan_mobile @ Jul 27 2007, 07:57 AM) merdeka bond?? what n how to buy that? the last time they had that i think was two years ago...but open to senior citizens only maybe this year they'll have one but haven't seen any adverts yet...
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Lcsx
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Jul 28 2007, 09:05 AM
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This is all done OTC. You will have to approach people holding them directly.
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TSkelvintan_mobile
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Jul 29 2007, 10:21 PM
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erm care to define OTC?? sry for being noob hehe
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PureGeek
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Jul 30 2007, 07:11 PM
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if bonds cannot be bought and sold freely in malaysia ... then, how to diversify between equity market and bond market as they negatively correlated?...
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Lcsx
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Jul 31 2007, 05:13 PM
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Oh.. OTC very simply means Over The Counter. Meaning not traded on the exchange.
Well, someone doing asset management in an insurance company might be able to tell you more about the bond market in Malaysia.
Mm actually there are plans to make Bonds more easily traded through secuirty companies. They are planning to make a system to track bonds just like your stocks electronically. I don't know the details though.
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shih
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Jul 31 2007, 05:18 PM
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QUOTE(PureGeek @ Jul 30 2007, 07:11 PM) if bonds cannot be bought and sold freely in malaysia ... then, how to diversify between equity market and bond market as they negatively correlated?... They are not negatively correlated. They are two different things. Normally bond trading involve huge amount of money, so only institutional players can trade the bonds.
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Singh_Kalan
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Jul 31 2007, 05:21 PM
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QUOTE(PureGeek @ Jul 30 2007, 07:11 PM) if bonds cannot be bought and sold freely in malaysia ... then, how to diversify between equity market and bond market as they negatively correlated?... that's why UT have various fund like equity fund, bond fund etc lor. Those org that issue the bond are not interested to deal with 'ikan bilis'.  That's why got middle man that collect money from 'ikan bilis' called fund manager that manage UT. So if u think u r not ikan bilis, then u can called up the org and deal directly lor.
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ejleemy
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Jul 31 2007, 05:30 PM
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Actually there are some negative correlation between bonds and stocks. Normally one goes up and another goes down.
There are cases where both going the same direction, like during a deep recession, bonds and stocks both will become worthless. Another case where both going up is when there are too much liquidity on the market, people have enough money to buy both stocks and bonds causing both to go up together.
Technically 0 = no correlation -1 = full negative correlation
its at -0.x..... somewhere between 0 and -1.
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shih
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Jul 31 2007, 05:35 PM
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ejleemy, you're correct. It depends on the market condition.
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cherroy
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Jul 31 2007, 05:38 PM
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QUOTE(ejleemy @ Jul 31 2007, 05:30 PM) Actually there are some negative correlation between bonds and stocks. Normally one goes up and another goes down. There are cases where both going the same direction, like during a deep recession, bonds and stocks both will become worthless. Another case where both going up is when there are too much liquidity on the market, people have enough money to buy both stocks and bonds causing both to go up together. Technically 0 = no correlation -1 = full negative correlation its at -0.x..... somewhere between 0 and -1. You are a statistician, based on your previously post.  , just joking. Instituitional Bonds and gov bonds are traded in millions a block so it is not accessible for retailers. But if you are rich enough to buy a few millions then can ringing up the investment house or bankers to do it for you.
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athlon 11
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Aug 1 2007, 12:20 AM
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bond are like gold,not for wealth increase,but more for wealth protection against inflation,their return is actualy not that attractive compare to share and UT,but it is another save financial tool other than FD.it more to people like uncle Bill,uncle Buff who already earn a lot,dont want to think too much on how to increase the value of money they earn already.
for general people in Malaysia,if want asset protection instead of investment,perhaps guarantee fund,gold ,fd and cash fund are more convienent option.
This post has been edited by athlon 11: Aug 1 2007, 12:21 AM
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