Tan Kin Lian's Blog: Perpetual bonds

Friday, May 04, 2012

Read my views about perpetual bonds in www.fisca.sg.

yujuan said...: On perpetual bonds. Depends on the financial health of the issuer Company.
Everybody agrees cash flow and the viability of the business in the medium to long term are prime considerations investing in such Bonds.
Can't argue against fact Genting is running a cash transaction business, and being in an Asian country with excellent air connectivity, coupled with a cultural Asian propensity to gamble in the blood, it does make sense to invest in this Company Bond, perpetual or otherwise.
However there is a slight difference between the two, in a bear market, this perpetual bond may go down, while other time based bonds may instead rise, with their mother shares slumping with the general market.
Still jittery, sell your PB when interest time comes along, still could make some money.
Prefer to keep eye on Genting itself, usually 2 months before Lunar New Year, or even during recessionary times, gambling companies usually thrive, going contrary to bad economy.
Simply put, Casino gambling businesses thrive in good and bad times. Can't beat them, may as well hang on to their coattails, and make some money out of them.
But invest, not gamble in its casinos. Let the gambling fools make money for us.; May 05, 2012 3:01 PM

Friday, May 04, 2012