Oh didn't know there's an SSB thread here. Next time will post all SSB stuffs over here.

It would be nice if you can change title to T-bills and SSB rather than just SSB so we can discuss both products here rather than just SSB.

This post has been edited by TOS: Nov 3 2022, 01:04 PM

ikanbilis Make sure you add these 2 HWZ threads to your first post so that prospective SSB and T-bill applicants can access the materials easily.

HWZ SSB thread: https://forums.hardwarezone.com.sg/threads/...006693/page-501

HWZ T-bills thread: https://forums.hardwarezone.com.sg/threads/...769601/page-321

You need to open a CDP account in Singapore first, which requires you to have the following documents:

1. Malaysia NRIC/passport

2. Work Pass/Student Pass

3. Mailing and residential address in Singapore, proven by an MAS-license bank statement (usually DBS, UOB or OCBC) or IRAS tax assessment document

Source: https://www.sgx.com/securities/retail-inves...urities-account

You may submit your application here: https://investors.sgx.com/cdp-account-openi...line-form-intro

Sporeans and PR can directly sign up using MyInfo.

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After opening a CDP account, you need to activate Direct-Crediting Service to receive coupon/interest payments, which requires you to have at least one of the following SGD bank accounts:

Citibank
DBS/POSB
HSBC
Maybank
OCBC
Standard Chartered Bank
UOB

Source: https://www.sgx.com/securities/retail-investor/cdp-faqs

Ok, let me suggest you some possible solutions.

1. On pass, all student passes and any of the following work passes will work: https://www.mom.gov.sg/passes-and-permits

It does not matter if you just stay for 1-2 months for a short-term training/student exchange etc., as long as it's under the above pass, it's accepted.

The key thing here is the FIN number which you need to fill up your CDP application form. And only "passes" will give you the FIN number.

Once the pass expires, you can just update CDP with your Malaysian TIN number (your MY income tax number) using the "Update Account Particulars" form here: https://www.sgx.com/securities/retail-investor/cdp-forms and tell CDP to cancel your earlier FIN number. I can share more details if necessary. You get to keep your CDP account after the pass expires.

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2. On address, if you have relative in Singapore and is in a study exchange/short-term work training programme etc., you may use your relative's SG address to open your SG bank account first, then use the same address to apply for CDP account since the bank statements will show an SG address on it.

An SG address is also important for opening a DBS/UOB/OCBC SG bank account which are the only means of purchasing SSB/T-bills for a retail investor.

Try looking for friends/relatives you can trust and obtain their approval to use their address. Then, get the SG company/university/school to validate the residential address in a formal letter which can then be used as proof to open DBS/UOB/OCBC bank account. Once bank account is opened and with your pass, you are 100% guaranteed of successful CDP account opening, even if the pass is invalid or cancelled in the midst of CDP account opening (since as stated in 1. above, you can always change the tax status as needed).

If you are working, try hard to look for jobs in SG. If you are a student, never give up any chance of a student exchange or further studies in a Singapore university. Good luck.

This post has been edited by TOS: Nov 3 2022, 05:51 PM

It's still early even though it's a little less than 1 week away. Need to monitor US 6-month yield movements as always.

I do see some on HWZ claiming to bid at 4.5 to 4.6% p.a using their CPF OA monies.

I shall wait for next Tuesday's 4-week and 12-week MAS bill auction results to make the final decision.

You can... reinvest those funds into new issues of T-bills...and wait for the next downturn...

They call it "laddering". The most conservative bond investment strategy.

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I have been looking at short-term deposit solutions to solve the "6-month-too-long" issue.

I presume you are in SG most of the time? If so, you can open as many SG FD accounts as you like with the banks found via this tool: https://sgfd.neocities.org/

And last time mentioned about MAS Bill via institutions, that's one avenue to consider too.

Recently, I am looking at USD FD deposits. DBS/UOB has USD FD deposits for short tenures of 1-3 months. The minimum deposit is 5k USD (UOB) and 5k SGD (DBS). You can use IBKR-DBS Remit to move money in and out in USD and other currencies. But you may only do so once a month due to IBKR's monthly withdrawal limit.

There is another thing you can consider trying: US Corporate Bonds with min 2k USD, subsequently 1k USD-interval denomination.

Pick the AAA/super strong ones like AAPL, MSFT and JNJ. Choose maturity 1-2 months away. Only 1-2 USD commissions per trade. Check the coupons though. Make sure they are comparable with prevailing rates.

I have checked their reactions during crises. Still some very small spikes, but good enough substitutes, if you are fine with it.



This is one example:

https://bondfacts.finra.org/AAPL4562449?

You can see from this link that the bid/ask spread has widen this year, resulting in larger difference in daily yields: https://finra-markets.morningstar.com/BondC...cusip=037833DE7

You may calculate the dirty price here, which included the accued interests: https://www.bondsupermart.com/bsm/bond-fact...et/US037833DE71

And there's some chance of little capital gain if you bid a low enough price: https://finra-markets.morningstar.com/BondC...=11%2F04%2F2022 (arrange by yield descending from the largest to the smallest)



This post has been edited by TOS: Nov 7 2022, 10:16 AM

You are very rich... That's 13k SGD in total at the minimum...

Let's continue our discussion here: https://forum.lowyat.net/index.php?showtopi...#entry105780117

For Eurodollar deposits like USD FDs in non-Fed regulated entities, counterparty risk is of paramount importance because the deposits are not insured. So you entirely dependent and count on the bank to refund you the money at the end of the deposit tenure.

Obviously you are unlikely to deposit USD FDs at Credit Suisse at the moment unless they offer you higher-than-market USD FD rates to factor in counterparty risk.

So far DBS is financially sound enough for us to deposit USD without the need for insurance. But uhm, prudent monitoring is still needed.

This post has been edited by TOS: Nov 7 2022, 09:16 PM

Why didn't you wait until today's MAS Bill auction results out and check their bids first?

Seriously, that's how you bid for something in an auction? ...

Ok lah, but I think 4.4% looks more reasonable. 20bp behind current yield, similar to past issue. We will see today's results soon.

4-week 3.8% cut-off, 12-week 4.6% cut-off.

It is interesting to note 12-week median is 4.33% p.a. while average is 3.85%. So 50% of institutions bid between 4.33% and 4.6% for a 3-month bill.

Source:

4-week: https://www.mas.gov.sg/bonds-and-bills/auct...date=2022-11-11

12-week: https://www.mas.gov.sg/bonds-and-bills/auct...date=2022-11-11

Tomorrow gonna bid 4.7%!

ikanbilis You may want to put ILoveSSB's link on the first page of the thread for ease of reference.

https://www.ilovessb.com/

I think this is an important "service" for SSB subscribers.

lol still reasonable.

I was looking at 3 month SG in comparison with 3 month US rates. The cut-off for SG side was 4.4, but US only side only 4.2%, so I suspect the SG rates may be better than US side.

That would also possibly mean SGD may not appreciate that strongly against USD in near term or may have mild depreciation since the SG rates are higher than US rates.

I ain't a chartist. You can consult dwRK for chart matters.

But I am aware of a macroeconomic principle known as "interest rate parity". There are others like PPP (purchasing power parity) and IFE (international fisher effect) but IRP has been shown to be true empirically, allowing for some trading costs and other opportunity costs.

http://mays.tamu.edu/center-for-internatio...Chapter-008.pdf



You can check the USD/SGD forward rate here: https://www.investing.com/currencies/usd-sgd-forward-rates or here https://www.barchart.com/forex/quotes/USDSGD.M/overview

Of course another possibility is difference in US and SG inflation rate, that's Fisher effect at play. I can't find SG inflation forecast data, so can't deduce that.

But you can be sure in the long run, SGD's appreciation (against USD) will always mean SG rates are lower than the US side. Short-term, I may be wrong.

Good news (ladies and) gentlemen:

https://www.mas.gov.sg/news/letters-to-edit...on-linked-bonds

Inflation-linked SGS bonds may be coming soon. MAS still need to do some study anyway.

This post has been edited by TOS: Nov 9 2022, 06:15 PM

Yup 4.7%.

I always bid higher than those kiasu kiasi HWZ members...

Ok lah maybe they are old age uncles, so cannot get too much shock when MAS announces bid results.

We will see tomorrow. Today's US 6 month is already 4.65%. https://www.investing.com/rates-bonds/u.s.-...onth-bond-yield

If I don't make it through the cut-off yield, will try again 2 weeks later.

MAS seems to have trouble producing the bid results...

Normally it's available between 1 to 2 pm. This time maybe CPF hot money flowing in...

Guess my 4.7% will not make it with those kiasu kiasi CPF monies bidding low...

Maybe. I still keep my fingers cross that institution money will outnumber those CPF hot monies since institutions provide "more realistic" figure.