is this a special deal ? 250k bond and 250k FD at 6% ?

MY GOVT BOND
Issued 2017 and matured 2037.
It’s being resold by the bank from original owner. Coupon is 4.7% but yield to maturity is 4.01%
Indicative ask price is MYR107.83
Payout semi annual
Sukok code MX170003
Min 100k.

Oh ya the banker also offer 1:1 matching FD value at 6% too for 12m.

Caveat on my comments, apology for not being clear.I was referring specifically to MY sovereign funds that if it’s collapsed, we as a country would have a more serious problem by then. Defaulting the payment or delayed redemption surely its still a risk but it’s a whole lot lesser than other instruments. Lack of better word, wanted to say if MY totally failed in honour the sovereign bonds, then we are really in deeper end. Wasn’t referring to just any bonds..

We have many trumpeting that they should withdrawal all their EPF at 55/60 citing the MYR is useless, country down the drain etc.

If EPF indeed collapse, MY by then would have been in severe pits. Sure we have a lot of issues and those that have holding in MYR will always have such challenges etc. sure one can diversify too but they are also many factors that allow or prohibit such, so it’s not single dimension. My thinking along this when making the previous comment above. Hope it clarify.

I stand corrected in my interpretation…

Yes even if with everything your sovereign bonds still loses value 🤦‍♀️ because MYR depreciation 🤦‍♀️ as you can go look at the examples of sovereign bonds that loses more on the value when currency depreciated

Since 1998 MYR is already depreciated by almost by double so it’s 25 years already while coupon payments loses half its value 🤦‍♀️ not to mention inflation biting the coupon payment so do you think holding sovereign RM bonds are prudent move

It won’t collapse but your money is loses half the value 🤦‍♀️ that is even before inflation biting you

FD at 6% 12m, one time offering of 1:1 if bought together with bond
Current 12m FD promo is around >= 4%

Indicative ask price of bond is MYR107.83
Taking into consideration of the promo FD extra of around 2%, this will lower the ask price of the bond.

Not sure my understanding is correct here, can I take that the adjusted current price of bond is around MYR105.83 (107.83 -2)?
Is so, this give YTM % of around 4.195% using the bond YTM calculator below.

Hopefully someone can confirm whether my understanding is correct. Newbie here learning. Thanks

https://dqydj.com/bond-yield-to-maturity-calculator/

great analysis and dissection.

the yield does look rather low, even though it is for ringgit risk free.
May as well throw extra money into EPF... similar risk if one has the means to take the money out after 14 years.

Tell us something we didn’t know about inflation etc.

Since you seems to be well informed financially, do share what is your investment portfolio and instruments like so we can all learn from.

is this a special deal ? 250k bond and 250k FD at 6% ?

The bank offer 1:1 match for this resold bonds that was issued in 2017. The previous holder sold it back to bank recently.

If you buy up 250k bond, you get 1:1 250k for the FD at 6.2% 12m only. Just the bank here offering such sweetener.

Too bad my other funds only comes in Sept .. doubt the bonds still available by then.

first time i hear buy MGS bond can get  FD above  board rate 2%
and  for 12 months some more!!
Bro  this sounds too good to be true with real sovereign MGS papers.

MX170003 at the price bank selling you is normal market price
so, giving you a sweetener 1:1 12 month FD at 6.2% rate is really fishy.

You better  double confirm with  your RM
you are not getting some bundle bank own repackaged product
and not that MX17003  MGS papers itself.

i knew of a case of "PTPTN Bond" when in actual fact it was bank structured product
and not a bond issued by PTPTN itself.

It's 2 separate product, not bundle. The bank offering sweetener for taking up the bonds.

I had same experience previous round TNB bonds, also 15 years with coupon at 5.23% at RM103.5k/100k in 2022

They also offer FD at 3.45% when that period most FD was 3%. They not willing to do 1:1 but 1:0.5 ie 100k bonds, 50k FD.

FD already matured and uplift too. Bonds still running with semi annual payout as expected.

Too bad my funds only come in next month. I'm sure those offer is gone by then.

Wow. Malaysian bankers are really going all out for your business, my friend! The more I read about it, the better the deal sounds!

Congrats, it seems my RM is useless. Anyway Monday I will just park my money in FD. FSM one you got too? You really going all in... haha.

received FSM email last night.......
Nowadays can buy from FSM is much better......
Bankers ask for money  15.8.23
FSM  can wait till 21.8.23 3pm!

Congratulations bro!

Thanks bro

This bond really in demand

Surprisingly price up so fast RM103.21.
just 2 days after issue

Buy 10 lots and redeem now can make money oredi..

Buying from FSMOne better than but from bank? How about on fees? Processing fee 0.5%, platfrom fee 0.045% per quarter. If buy from bank got platform fee too?

if you managed to get it at PAR value.... then yes of course.
Also don't know if the price indicated is a tradable price. Hopefully it is.