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

Most of the time, it's not offered to the general public.

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.

merdeka bond?? what n how to buy that?

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?

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

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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

erm , coz i had been reading than americans could buy bonds independently but in malaysia dont think so .. just wondering n learning , lol thanks

if i could buy bond, i would've grabbed singapore genting sentosa bond offered sometime back.

Too bad we do not have a designated market/exchange for bond trading.

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...

This is all done OTC. You will have to approach people holding them directly.

erm care to define OTC?? sry for being noob hehe

if bonds cannot be bought and sold freely in malaysia ... then, how to diversify between equity market and bond market as they negatively correlated?...

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.

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.

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.

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.

ejleemy, you're correct. It depends on the market condition.

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.

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

You need to be of a high status person(theres unwritten guideline on how much you should earn annually) and prominent figure. Also somewhat heavily invloved in politics, economy, leading figure. These are the investment vehicles available only to the selected few.

Well generally that is true but bonds can be highly speculated also. Buying bonds grade BBB and below will give you higher coupons together with much higher risk than your FD. Also ratings can be speculated on as well. You can speculate on bonds which have been rerated much lower recently and sell it off at a much higher price. Eg. Lets say during a country's crisis a bonds par value can drop significantly from the usall 1000 to lets say 400. So you may want to speculate and buy when it is at 400 with the gamble that it may run up to say 800 again.

Additionally you can speculate base on interest rates. Interest rates are negatively correlated with a bond's par value. If you expect interest rates to drop you could speculate by buying bonds.

LCSX,

is it posible we gambling (buy bond more than actual money we have)something like contra in buying share in Malaysia?

I don't think that is possible. You are usually buying the bonds directly from another person/company. Unless that person/company lets you pay later maybe.

But you most likely don't want to do something like contra. Changes in bond prices are not that fast really unless it is coming down.



This post has been edited by Lcsx: Aug 2 2007, 07:02 AM

http://biz.thestar.com.my/news/story.asp?f...99&sec=business
TNB bond
anyone know is this for public??

Supposed to be for public but it looks like an initial statement...no real details yet, have to wait I think

talk to private bankers, they are able to offer you

any indication of possible return????

Is it a good thing or something to worry about when malaysia sell 5billions of bond fund in the past 2 week...

I think it will be in the range of normal FD and PNB funds (ASx etc) kind of return...back by government somemore. I'm also feel something fishy about it, dont know why

Buy Greek sovereign bonds lor. 20+%, where to find this kind of returns? bring a block of wood in your pocket so you can always touch wood that the eurozone won't reverse their decision to bail out the country

Or other not-so-teruk countries sovereign debt also damn high. Like Kenya, the auctions are always above 10%.

how do i buy bond?

i think there are few bond available on the bursa now, DIN04000223, DIN042300721, DIN045801028 . these are dana infra bond for the MRT construction. they are tradable in 10 unit per lot, yield is around 4%, there's also a bond ETF available on the klse called ABFMY1

This post has been edited by repusez: Jan 6 2015, 01:22 PM

what are some good corp bond funds available out there in malaysia market?

reviving this old thread, invested in Kenanga's bond the last time around.
any other similar bonds recommended? looking to diversify my portfolio

May I know how you buy the bond? It's not kind of stock right? I'm confused.

the following explains the more common bonds, and is not meant to be exhaustive...

1. Bonds are basically borrowings by entities, either government, or private business. Ie, the borrowing entity is the issuer of the bond, and the buyer is the creditor of the entity....

2. they are generally unsecured, and hence pose some risks....the buyer hopes that the issuer will pay the "interests" and eventually, the capital sum as well...therefore, how attractive the bod is depends on the yield...and the yield depends on how creditworthy the issuer is, and the prevailing economic conditions...for high rated governments and companies, they will have high ratings (eg AAA, AAa) and can borrow money with low "interests". ..for lower rated entities, they will need to give higher "yields" to attract buyers...

3. The bond will have a coupon rate usually, which is the fixed "interest" that the issuer promises to pay the buyer, based on the par value...this is either paid yearly, or half yearly or quarterly....high grade bonds may only have coupons of 3% or less...whereas BBB and lower bonds (junk bonds) will have coupons of 5-8%....

4. bonds are freely traded in the secondary market, and the price will fluctuate...it can be above the par value (premium) or below (discount)...

5. it can have a tenure, or be perpetual (ie forever!)...the tenure may be a few years to 30-40 years...for long term bonds, they often have a callable date, say 10 years into the bond, where the issuer has the option to call in the bond and pay up the buyers (lenders)...

6. the actual yield depends on the traded price of the bond....eg, say a bond (par RM1) is traded at 1.05 with a coupon on 7%...the yield is 1/1.05 x 7 = 6.7%....on the other hand, one trading at 0.95 will have a yield of 1.0/0.95 x7 =7.37%...

7. there is a generally inverse correlation with interest rates....as interests rates drop, the bond price will increase....eg, the pbf bond is now trading at about 1.12, on a coupon rate of 7.5% yielding 6.7% return...still higher than FD or money market instruments...at one point it was trading at a premium of 1.22, still yielding a respectable 6.1%....hence people will still buy at that price...

8. traded price will always move towards par as the call date, or maturity date approaches....because the issuer will only pay par value at call/maturity...

8. you can gear to buy bonds...if the coupon rate is significantly above borrowing rate....so say, if your coupon is 7.5%, and interest on borrowing is 5%, you still have an arbitrage margin on 2.5% returns....gearing allowed will depend on the rating of the bond, and can be 50-70% of the total investment amount...this gearing is especially useful if you buy bonds in low interest currency...eg, usd have less than 1% interest (although the investment bank lending you normally charge 2.4-2.6%...so eg, for a bond coupon rated 5%, and borrowing 70%, your real yield can be close to 10%...

9. finally, the bad news...there is no "retail" sale of bonds in msia, and you will need to go through investment banks, and involves large sums of money...for local bonds, minimum is 250K....for usd bonds it's usd200K...

If not wrong, bond will be traded in Rentas

Reviving this thread, anyone else invested in any bonds recently worth sharing info about? Grade AAA

a new paper coming ... ECO World International ... unrated.

I do not thru normal channels can get those AAA grade bonds .. and also rate wouldn't be good.