tag:blogger.com,1999:blog-19741162.post8322215090096732067..comments2024-02-22T02:33:21.869+08:00Comments on Another Brick in the Wall: Impressive Bond Benchmarking exerciseA Voicehttp://www.blogger.com/profile/01780035743502972342noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-19741162.post-51595661987594957112010-06-18T11:29:00.747+08:002010-06-18T11:29:00.747+08:00Donplaypuk
Yes ... so what? You just learned some...Donplaypuk<br /><br />Yes ... so what? You just learned something new, is it?<br /><br />What OSK did was to get indicative price. That is not benchmarking, even if it is Tony Pua saying it ...<br /><br />Cukup cukup la.<br /><br />I used to trade in Bonds before people know about bonds. Was also doing FRNs FRCDs etc.<br /><br />Tell me something I dont know.<br /><br />... dah bunyi arrogant pulak.A Voicehttps://www.blogger.com/profile/01780035743502972342noreply@blogger.comtag:blogger.com,1999:blog-19741162.post-13520417334104327652010-06-17T18:15:31.082+08:002010-06-17T18:15:31.082+08:00Bro
The $1.2b sukuk was all US$ denominated issue...Bro<br /><br />The $1.2b sukuk was all US$ denominated issues entirely for overseas consumption and so international rules apply, not merely M'sian.<br /><br />I.e., the final pricing of the issue at US Treasury 5-Year plus 180 basis points with yields touching 3.928 percent were rated by Moody's and S&P, not our M'sian RAM.<br /><br />As another (no different from what you would do with a bond issue) example of benchmarking without incurring expensive fees is when Astro wanted to price its listing, it approached leading brokers and foreign merchant banks here and in S'pore etc. to get a feel of what they would pay for large blocks of shares. That's why OSK blew it at $5.50 while most settled for much less and the public issue was at $4.90, I think. <br /><br />This should help on the $8 b tanks. <br /><br />http://tonypua.blogspot.com/2010/04/rm8-billion-for-257-armoured-personnel.html<br /><br />dpp<br />we are all of 1 race, the Human RaceDonplaypuks®https://www.blogger.com/profile/14885751307558636916noreply@blogger.comtag:blogger.com,1999:blog-19741162.post-29281600744375586832010-06-17T17:05:34.870+08:002010-06-17T17:05:34.870+08:00donplaypuks
Continue to read up on bonds but dont...donplaypuks<br /><br />Continue to read up on bonds but dont mix it with political cynicism, it clouds the discussion.<br /><br />On your cut and paste answer, kasi chance malaslah nak kasi you malu. Abenda dia cakap? Ini Malaysian paper situation la bukan Eropaper or American paper. <br /><br />Issuing bond is one issue and ketirisan is another issues. <br /><br />I concur with your concern on the istana increase budget. <br /><br />What about with the RM8 billion tanks? Our defense is not adequuate. Unless you can tell me there is inappropriate pricing, I am all for it. <br /><br />Wheres the beef?<br /><br />On the maintenance cost, hmm ... don't think so straight forward and naive la. There is more than midst the eyes. <br /><br />Go dig up yourself and tell me.<br /><br />The point here is keep the ketirisan issue aside and bond issue aside. If you wanna campur everything, nothing gets clearer but cloudier.A Voicehttps://www.blogger.com/profile/01780035743502972342noreply@blogger.comtag:blogger.com,1999:blog-19741162.post-24343194260050103802010-06-17T13:11:24.895+08:002010-06-17T13:11:24.895+08:00Firstly, how else does a Govt fund the deficit bet...Firstly, how else does a Govt fund the deficit between between its planned spending and income, usually due to development expenditure and cost overruns/ overspending in the previous years?<br /><br />It's through the issuance of Govt guaranteed bonds and papers locally, and where necessary overseas. And we've been doing that for well over 20 years.<br /><br />And that's why the issues of additional $400 million for palace, $8 billion for tanks and previously unplanned maintenance cost of $400-700 million for subs are relevabt. Where is the govt going to get the money for it?<br /><br />And as how to benchmark bonds without borrwing money we don't need, here's a tip:<br /><br />"Preliminary Questions for a New Bond Issue<br /><br />Federal bond issues are coordinated by the central bank. When it's anticipating a new federal bond issue, the central bank first conducts an informal survey about current market conditions and the type of issue investors might prefer. These informal discussions are held with investment dealers, banks and other market participants who have experience with bond issues of the size and type being considered. (For more on central banks, read Are Central Banks?)<br /><br />Before the details of the new bond issue are decided, several important questions have to be answered. Most importantly, the federal government must determine the precise purpose for the issue. Often, it will relate to a specific capital project being planned by the government - a major new road or bridge, for example. But the purpose can also be something as general as refunding prior debt - that is, paying for past borrowing with new funds that are presumably borrowed at a more favorable interest rate."<br /><br />http://www.investopedia.com/articles/basics/04/052104.asp<br /><br />Of course, if you are used to tapes and rulers, I have nothing more to say!<br /><br />Anon, I don't follow you. If these projects are not for th ebenefit of the Rakyat or nation, then why should the Govt bother? And War Bonds? Are we preparing for World War 3?<br /><br />dpp<br />we are all of 1race, the Human RaceDonplaypuks®https://www.blogger.com/profile/14885751307558636916noreply@blogger.comtag:blogger.com,1999:blog-19741162.post-13245949822986990692010-06-17T09:13:14.447+08:002010-06-17T09:13:14.447+08:00dpp know nuts about bond market.
Still talking t...dpp know nuts about bond market. <br /><br />Still talking the novice trader issue like finance for benefit of rakyat.<br /><br />For light armoured vehicle and submarine, they issue war bonds la ...<br /><br />Anyone paid commssion? <br /><br />Lots la ... issuer, manager, syndicator, brokers, ... semua kroni. Sure dpp lompat.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-19741162.post-58798690851807492582010-06-17T00:42:53.313+08:002010-06-17T00:42:53.313+08:00donplaypuks
Take off your accountant hats and cyn...donplaypuks<br /><br />Take off your accountant hats and cynical citizen cap. <br /><br />Don't make the stupid political remark about armoured tanks, parliament and submarines. That is out of the subject matter here.<br /><br />We are talking bond market language here.<br /><br />Malaysia used to issue long bond for US$200-500 million back in the 80s for benchmarking. <br /><br />USD1 billion issue is nothing today. It should be a small issue for today's market.<br /><br />There are other costless way to benchmark our bond? Like what? Using rulers and tapes .... :)A Voicehttps://www.blogger.com/profile/01780035743502972342noreply@blogger.comtag:blogger.com,1999:blog-19741162.post-47469995625799012452010-06-16T19:17:46.803+08:002010-06-16T19:17:46.803+08:00"Not only do Malaysia need sovereign bonds, i..."Not only do Malaysia need sovereign bonds, it needs to issue more long term Government Bonds, MGS to prop up the local bond market."<br /><br />It it's to finance well thought projects which will benefit the Rakyat and ensure long-trem growth and prosperity of our economy, GOOD!<br /><br />But if it's to finance $8 billion light armoured tanks, $800 million new parliament building, $800 million palaces, $3.7 billion useless submarines with annual maintenance cost of over $300 million etc., then we will like the Western countries continually be trapped in an everlasting cycle of issuing bonds to pay for ever increasing national debts.<br /><br />Eventually, as in USA, our economy will collapse and we will be reduced to 4th world status!!<br /><br />There are other costless ways to bechmark our bonds. And was anyone paid a commission and how much for raising this $1.25 billion sukuk everyone says we DON'T NEED?? <br /><br />dpp<br />we are all of 1 race, the Human RaceDonplaypuks®https://www.blogger.com/profile/14885751307558636916noreply@blogger.com