Opportunity to buy HSBC Holdings Plc USD bond
Direct from HSBC 1 lot =USD200k
Launched 23.3.2018 Perpetual
1st Call back 23.3.2028
Coupon Rate 6.5% 6 monthly
Type - AT1, Junior Subordinated

MYR hedged by Affin Hwang -->Single Bond series 1
now selling below PAR~ RM94 ( was moving from high in Feb 2020 RM114 down to low RM79 in mid Mac 2020)
as low as RM10,000.00, Fee 2.0%
Deduct Mx fees etc , Coupon ~ 5.5% pa 6 monthly
rating BBB only


I bought from CIMB, you call your own bank and ask


Attached thumbnail(s)

Can buy frm FSM?

can find out, cimb sold out

Does the coupon rate guaranteed?

How it is operate? There are bid and ask spread. Seem complex.

u can google basic terminology of bonds. then you'll understand.

Past payout fixed 5.5%+/-
not sure abt the bid and ask price, in ?FSM
i buy from CIM follow cimb price RM93 that day
now seems cheaper, the price fluctuates
at call back will get back PAR RM100

Yes, I saw the information from FSM about the bid and ask price.

If 1 lot is USD200k, then it is a big investment for small player as we need about RM853k.

You dont need USD200k, as you can buy only RM10k or may be lesser with FSM as we are buying Affin Hwang Single bond and not the HSBC Bond direct and MYR hedged, no currency risk.

Thanks for the information.

Based on your experience, what are the risk involved for this corporate bond?

The return is the coupon payment and does the price appreciation or depreciation will affect your return when this bond matured?

HSBS goes into trouble, money burnt
Same for any corporate bond

earning from coupon 5.5% is main aim.
price increase is extra benefit.
Buying below PAR has advantage, if HSBC dont go kaput, bond call back in 2028
i will gain extra selling back at RM100
.............

This post has been edited by guy3288: Jun 9 2020, 08:51 PM


Attached File(s)
 AffinHw_Single_Bond_1.pdf ( 319.59k ) Number of downloads: 43

Is there a time period for this bond fund to end? As in if I invest Rm100k, when can I withdraw/stop and take out whatever capital left (assuming interest is paid annually)? thanks.

No time period, can sell in secondary market any time, i sell today my profit is RM2700. Last week price was even higher

If keep till call back 23.3.2028 my profit will be RM8500 because i buy below PAR.

But we buy bonds mainly to earn the coupon rate 5.5%, not for short term gain, you sell you forego the 5.5% interest instantly.

Say if no demand in secondary market and we cant sell out, will hv to stuck with this bond forever since its perpetual?

if buy from FSm yes, that worry,
Not if you buy from bank
eg CIMB will take back at market price any day you want to sell.

Is CIMB reopening sbs1 with 30 mil quota ?

This post has been edited by csbong87: Sep 29 2020, 11:34 AM

Yes opportunity to buy again below PAR , HSBC share crashed big time.
buy buy buy.

Dividend just declared 0.029 sen per unit, come >3% return in 6 months.

5.5%? original coupon rate not 6.5% ?

I bought this previously and would like to buy more if its below PAR now - should I contact Affin directly and how does the top-up work?

Tq

from my understanding, can only buy thru cimb