Tuesday, November 04, 2008

Indicate price of Pinnacle Notes as at 20-10-08

Prices as of 20 OCT 08 - quoted by OCBC Securities

USD SGD
Pinnacle Series 1 5.60% 5.61%
Pinnacle Series 2 5.42% 5.95%
Pinnacle Series 3 16.24% 16.13%
Pinnacle Series 5 8.82% 8.86%
Pinnacle Series 6 5.90% 5.43%
Pinnacle Series 7 5.65% 5.59%


The prices are very low. Most of the notes (except series 3) have lost more than 90% of their value

9 comments:

Concerned said...

How come no financial institutions post indicative prices of Minibonds.

Anonymous said...

many pinnacle note holder donot know the price until now. Until now, many investors do not know their Pinnacle note are hit baddly. THe MS is still OK, the reference entities is still OK, but the CDO basket is terrible and hidden behind until now.

How many people involved in this toxci product, if that is about 10,000 as same as minibond, then we will have 20,000 people suffered. IF multiple by the family member's, eg 4 persons per family, we will actually have at least 80,000 suffers here. We should work together to get back our money.

Raymond T said...

It is quite in line with the stocks in the share market.

Sanity said...

This is not stocks but the prices are worse than stocks. In stocks, we can lose alot but we can also gain alot. It is the risk we take.

In this, we only get ~3% more in interest per year but we stand to lose everything.

Totally no logic.

ph he said...

Finally, we are now focusing on Pinnacle Notes - a time bomb which may collapse any moment! Yes, there could be tens of thousands of people involved - distributor / seller includes UOB Bank, UOB Kay Hian etc. MAS should review these toxic Notes immediately and remove them from the 'shelf' before it KILLS, followed by compensation!!!

Anonymous said...

The holders only get around 5% p.a. over the long term. For shares, the return could be a few 100% returns over the long term.

Anonymous said...

Read this:
"...Also referred to as guaranteed linked notes, Lehman Principal Protected Notes were "structured products" that combined fixed income investments with derivatives. What resulted was a product that supposedly provided the protection of fixed income, with the upside of the stock market.
UBS customers have complained that they were misled into believing that these Lehman Principal Protected Notes were safe and secure investments, and that their principal was fully protected. In reality, however, investors of Lehman Principal Protected Notes were subject to a significant amount of risk. Lehman was not investing the money received from the principal notes, but instead they were using it to fund their operations in the face of mounting losses stemming from the collapse of the subprime markets. Further, Lehman defaulted on many of these protected notes several months ago and they have not traded since. With the bankruptcy of Lehman Brothers, the protected notes are worthless.
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered significant losses. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms...."

It gives some clues where your money was placed:

“UBS customers have complained that they were misled into believing that these Lehman Principal Protected Notes were safe and secure investments, and that their principal was fully protected. In reality, however, investors of Lehman Principal Protected Notes were subject to a significant amount of risk. Lehman was not investing the money received from the principal notes, but instead they were using it to fund their operations in the face of mounting losses stemming from the collapse of the subprime markets.”

In short, my understanding is that:

“Investors of Pinnacle Credit-linked Notes are subject to a significant amount of risk. Morgan Stanley is not investing the money received from the principal notes, but instead they are using it to fund their operations in the face of mounting losses stemming from the collapse of US sub-prime markets.”

Read what ‘adego’ said in another thread:
“…now the minibond has CDS, which is a bond insurance, it is also a contract. minibond holder is the insurer(indirectly), they have to take counter-party risk to compensate the 'insured', when any ref entity runs into credit event…”
“…minibond - this kind of structured product is a form of contract. the minibond holders will receive 'premiums' (5%p.a. dividends), which is stated in the contract, and should credit event occurs, we shall have the stories of ah pek and ah mah crying...
yes, the minibond contract is very 'unfair', but it's 'willing parties' entered into it, with the 'inducement' of 5%p.a. yield.
now that they have entered into the contract, they have to honour it and 'discharge their obligations'….”

…how unlawful it is, it is structured lawful….Pinnacle CLN/CLS all series are in the same boat.

Anonymous said...

Talking about Morgan Stanley. Imagine, what they have done intentionally to support their faulty operation yet they still write out analyst reports on stocks. I mean, can we really trust them anymore?

Anonymous said...

Morgan Stanley didn't investment the principal collected for pinnacle note as per delared earlier. Isn't this cheating investors? Just wondering what about those distributors told us when promoting the notes, all lies! Is there no channel in Singapore that could us the misled investors?

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