Tan Kin Lian's Blog: Help Minibond investors to secure the collateral

Thursday, July 23, 2009

Help Minibond investors to secure the collateral

Mr. Tan
If govt is reluctant to force FI to compensate like what happen in Hk, perhaps you can suggest that it takes the leader role to help Minibond investors to secure the Collateral [GE capital bonds etc] which has up to 70% value for the benefits of the investors.

This is a concrete action that would help all to investors - whether they are compensated or not. Don't forget, many investors are compensated just 10%.

If you read bullet point 3, "banks will make available an amount equivalent to the amount of commission income received by it as a distributor of the outstanding Minibonds to the trustee of the Minibonds to assist in the recovery of the underlying collateral for each outstanding series of Minibonds"

Regards
Steve

9 comments:

Anonymous said...: I am aware of the GE bonds as acollateral. I called HSBC to point this out. HSBC said that the GE bonds cannot be "retrieved" as they are part of Lehman bankruptcy. What a load of hogwash.

I called MAS and complained that the ban on sales of structured notes is not a punishment because there is no demand for such products. the spokeswoman, with perfect english, said "you know for a fact there is no demand for such products?"

With that, I have lost all trust in Singapore governemnt and institutions. do they really deserve those multi-million salaries? "their reputation is tarnished." give me a break.; July 23, 2009 8:58 AM
Anonymous said...: Suggest you contact Minibond group with regards to securing the collateral. Don't count on our useless million paid salary authorities.If they are serious in helping investors they would have done so in many ways.; July 23, 2009 9:40 AM
Anonymous said...: Yes, the PAP govt is only care for their pocket and do not care the common citizen suffering and appeal. I will not vote for them next time. I am sure many of them will follow suit especially those investors that lost so much money.
lost heart; July 23, 2009 12:46 PM
Anonymous said...: Maybe can use DMDP slogan for august gathering. DMDP: Draw Millions Deliver Peanut.

If they have brains, this issue is not going away in a few years. We the floaters or the Silence Lot have enough of the crap MAS is dishing out. Good luck to them on the next election.; July 23, 2009 1:24 PM
Anonymous said...: Dear All,

I random checked the credit rating of one company in the underlying basket in 2006 when they lanuching the Pinnacle Note 1. I found the cheating. They declared in their price statement:

Collateral/ Security:

The Notes will be secured by, amongst other assets, (i) Underlying Assets which may include AA-rated or higher rated US Dollar denominated portfolio credit-linked securities(i.e. Synthetic CDO Sectuities)

However, the Company D.R. Horton Inc I checked is rated BB only, not AA- or higher as they claimed.

We need to urge MAS investigate Morgan Stanly also.

****************************************************************************

OUTSTANDING RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH

D.R. Horton Inc.
Corporate credit rating BB

Senior unsecured debt rating BB

RATINGS RAISED AND REMOVED FROM CREDITWATCH

D.R. Horton Inc. TO FROM
$130 million 10% senior notes due 2006* BB B+

$20 million 10% senior unsecured notes* BB B+
due 2006

$86.25 million 6.875% convertible* B+ B-
subordinated notes due 2002

*Assumed from Continental Homes Holding Corp.; July 23, 2009 1:31 PM
Anonymous said...: Investigate Morgan Stanly? Hey, this one is very powerful. American, you know. What outcome you think? Small flies get 6 mths to 2 years ban, Powerful MS, most likely be given a very, very STERN warning, "Sir, please don't do it again. Very difficult to give statement in Press. Thank you."; July 23, 2009 9:18 PM
Anonymous said...: Not sure where the info is from but it seems like the ratings quoted might be for unsecured debt rating which could be different from synthetic CDOs. you can take a look at this article which explains CDOs here(http://thismatter.com/money/bonds/types/cdo.htm); July 23, 2009 10:46 PM
Anonymous said...: Infor is from their price statement, the colorful pages.; July 24, 2009 8:17 AM
Anonymous said...: I attended Robert Kiyosaki seminar a few months ago. He said the more colourful & impressive the brochure, the more you have to be careful. How true.... Colourful snakes are usually more poisonous than others.; July 24, 2009 6:02 PM