I guess many are looking forward to Singapore Savings Bonds. While much has been discussed, I would like to just share some of my thoughts.
On surface, this is an very attractive and 'almost risk-free' investment tool. If you compare it against Fixed Deposit, the Bonds will deliver higher return (guidance effective 2-3% pa) if you keep it to maturity. However, if you redeem it earlier, the effective interest rate could be lower than the normal Fixed Deposit.
10 years is a long period of time. A few scenario could happen. The interest rate could rise, stay the same or fall (though the downside room is limited). The investor may need the cash back earlier and not able to keep it maturity.
This brings to the important point. Unlike other bonds which can be traded openly, this bond can only be sold back to MAS at par value plus accrued interest. The biggest disadvantage of this is that you lose the market mechanism to price it accurately to reflect its future earning (step up interest). Imagine after you hold the bond for 5 years at low interest rate, you need the money, but this is when the interest rate starts to step up. If this were to be an openly traded bond, all else equal, the bond price will be higher than par.
Monday, July 27, 2015
Saturday, July 25, 2015
Biosensors AGM 24/July/2015 @ Suntec
I attended this year Biosensors AGM.
Just to capture some key Q&A.
1. Dividend - Several shareholders asked the Board about dividend. One shareholder actually requested the Board to declare a dividend after the AGM. Another requested the Board to give a special dividend for the Pioneer in celebration of SG50 :)
2. Product roadmap - Concern was raised that as a technology company, Biosensors does not have a pipeline of new products.
3. Visibility in product approval - No sight of light even after 5 years of trying to win approval in China. The Board mentioned that China policy and personnel continue to evolve over time, making the process difficult.
5. Corporate governance - One raised concern that the Board of 10 is too large. Also there should not be an Executive Chairman, the CEO should be the sole person responsible and accountable for the operation of the company.
6. Competition - The Board mentioned that no way they would all who also in the process of seeking approval for competitive product. But their agent Terumo seems to be able to produce and market an OEM version in relatively short period of time.
Anyone there also attended?
Just to capture some key Q&A.
1. Dividend - Several shareholders asked the Board about dividend. One shareholder actually requested the Board to declare a dividend after the AGM. Another requested the Board to give a special dividend for the Pioneer in celebration of SG50 :)
2. Product roadmap - Concern was raised that as a technology company, Biosensors does not have a pipeline of new products.
3. Visibility in product approval - No sight of light even after 5 years of trying to win approval in China. The Board mentioned that China policy and personnel continue to evolve over time, making the process difficult.
5. Corporate governance - One raised concern that the Board of 10 is too large. Also there should not be an Executive Chairman, the CEO should be the sole person responsible and accountable for the operation of the company.
6. Competition - The Board mentioned that no way they would all who also in the process of seeking approval for competitive product. But their agent Terumo seems to be able to produce and market an OEM version in relatively short period of time.
Anyone there also attended?
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