Anyone here invest in Malaysia Bond?

I saw FSM offer MGS 4.504% 30Apr2029 Govt (MYR), the interest rate is around 4.504% sound good to me.

but just not sure is it good to invest at this moment? since ringgit is depreciating asset.

and, is it better to invest in government bond rather than corporate bond?

One more round of increase in OPR early next year, u can easily get 12 months FD of 4.xx% p.a.

Forget about MGS as you better off putting money in EPF instead 🤦‍♀️

then what about corporate bond?

i just take MGS as example, then what about other upside potential bond?

At that rate, I will rather put in FD. Anytime tak Suka, can Keluar (the money).

if anytime take out money from FD, all the cumulative interest will gone

Yes, but your bond can take out or not? Interest rate going to be same by next year. Why bother with bond if same rates i can get with FDs?

Make sure the company solid and investment grade rates highly otherwise chances goes bust is high

Utilities companies are now sought after for corporate bonds as the yield high at 5% onwards and you must have the time to hold otherwise liquidity issue

Like many said currently FD 4+% which is way better yield for the risks you taking

Max out EPF 1st then only you should decide on bonds as many has been burnt even from bond funds

For short term just put in money market fund.

For long term put EPF.

The only time you will consider bonds is when you're old liao and you want to preserve your money. But even then money market fund usually better.

Old Liao, better use money. Die Liao, preserved money no use for preserved corpse.

This post has been edited by CommodoreAmiga: Nov 18 2022, 11:22 AM

bonds with only 4.5% now is too low
not worth it
FD can get around that or more.

MGS is very safe but very long tenure, wait for YTM going to 6% then buy
Some are reaching 5% as they are selling below PAR.
but in FSM you need to consider the platform fees and selling need to wait for willing buyers
buy from bank easy to sell back no platform annual fees.

Corporate bonds like Tropicana 7.5% why not, sure can buy but must check availability and price
if below PAR i sure will buy again.

Hello people buying bonds only got RM60k in 365days?
if they have more and you tell them put RM250k in EPF

Interest rate might go down in a year or two, bringing FD rate down as well.

You lock the interest in MGS until maturity. N if interest rate drop, you can sell the bond before maturityfor some capital gains.

But u take risk if interest rate go higher.



This post has been edited by Cubalagi: Nov 26 2022, 05:07 PM

Any good bond to invest into now? Or any where to get good bond recommendation?

try check this out??
https://www.fsmone.com.my/bonds/bond-resear...enges?src=bonds

or try ask their CS??
https://www.fsmone.com.my/support/contact-us

hi there

You can actually sell your bond anytime before it matures and the selling price is subject to market conditions.

Similar to FD, bond investments may yield a stable interest income that is usually higher than the interest received from FD for a comparable tenure, with an added chance of capital appreciation.

Furthermore, unlike FD, there are no penalties should the investors wish to redeem their investments.

Bond price will not have significant drawdown unless it is downgraded by rating agency or the bond being default.

Generally bond coupon payment is higher than FD rate in long run as bond is still well cushion by the fixed coupon payout annually (around 4% - 5% for Malaysia corporate bond).

This post has been edited by FSMOne Malaysia: Dec 8 2022, 10:48 AM

Bond investment may also provide regular stream of interest income and potentially grow your capital in the long term. Investor receives fixed-rate interest income (coupon), usually semi-annually, which remains the same despite how market interest rates might change.

Investors may be able to reap a potential long-term capital gain as bonds offer predictable repayment of principal at maturity. This is because bond prices often move in the opposite direction of market interest rates. Should market interest rates fall, there may be potential for capital gain from price appreciation.

For example,

when Bank Negara continues to raise interest rates in the future, investors can find some gems in the bond pace, especially buying into those bonds where the price falls below 100.

Investors could enjoy the regular income stream + the capital appreciation if hold until maturity.

Besides, during interest rate hike environment, the issuer will offer higher coupon rate to attract new investor. In the end, investor will enjoy higher coupon rate when they buy into new bond during this period!

This post has been edited by FSMOne Malaysia: Dec 8 2022, 11:05 AM

Transaction volume are low right? Difficult to sell later or have to sell at the lower price range?

FSMOne platform does have the bond Express platform, you can trade your odd lot bond on the Bond Express platform. The liquidity will vary depending on the offer price and bond rating at the point of selling.

Generally, you are selling your odd lot bond to FSMOne, and the bond dealer will resale to other investors by increasing the “Ask Volume” in the bond express platform.

You may refer to “Bid Volume” in the bond express platform to identify how much we are willing to buy back from investors.

Big spread between “bid” and “ask” pricing.