temasek bonds?
-
why is temasek offering bonds?
it jus doesnt make sense to me when u have cash flowing from the CPF at 2.4%
can anyone enlighten me? -
Let me take a wild stab at this.
More money?
-
Leverage..
Its like borrowing at 4% with bonds then investing in stocks to earn 9-12% and making difference. -
Don't tell me no more money in the reserves so have to resort to issuing bonds.Originally posted by kilua:Leverage..
Its like borrowing at 4% with bonds then investing in stocks to earn 9-12% and making difference.
Isn't that what companies do when they need cash? -
Not always true... some companies do it to improve "gearing" or Return on InvestmentOriginally posted by charlize:Don't tell me no more money in the reserves so have to resort to issuing bonds.
Isn't that what companies do when they need cash?
Let say if you got 1 million you can only earn 12% i.e. 120,000
but if you can issue bonds of say 300,000
Now you capital you have is 1.3 million - you can earn 156,000 on 12%
but 156,000 you have to less interest on the money borrowed.say (300,000X4%)
156,000- 12000 interest = 144,000
144,000 is still a better deal than the initial 120,000
But it becomes bad when a company borrows too much. -
I'm interested in Temasek bond....
Anyone knows the details? -
bonds are offered when borrowing from banks becomes more expensive. bonds are needed to raise funds for a purpose eg. expansion. So are we going to buy more companies from overseas again?
-
most likely....Originally posted by charlize:Don't tell me no more money in the reserves so have to resort to issuing bonds.
Isn't that what companies do when they need cash?
errr.... india, china, thailand..... ..... ......
bleeding like hellllllll...