Seem Directionless... but it masks the treacherous undercurrent
The capital markets had just gotten through a series of commotions after the interest rate hike officially kicked-in early this month, and the aftermath of it, was catastrophic... with the stock markets continued to retreat, cryptocurrencies tumbled, bond prices are falling with coupon rates reversing upward now. All these hard-knocks that eroded the return of the global investments, come only with one motive: Suppress the Rising Inflation.
Bond Market
We have the Temasek’s Azalea that launched Astrea 7 PE bonds this week, and the application for the public tranche will be closing on 25th May, 12pm. Many investors may still contemplated whether to take it up or not. Honestly, the possibilities of defaulting is definitely slim to me, but 2 pointers to note. Waiting 10 years for 4.125% to outweigh the opportunities cost that probably come along in the next 10 years, unless investors are income-seekers and risk-averse, else may not be suitable to this class of investment. Next, as we refer back to the balloting ratios and allocation basis of Astrea 6, retailers may actually get very little in allocation if the quantum of your application is not substantial enough. Hence, no harm to give it a try if you have spare cash that has been lying around and not working hard for you in anyway.
Reference:
Astrea 7 Bonds: 10 Things Investors Need To Know About This Private Equity Bond (Offering Up To 4.125% And 6.0% Interest) - dollarsandsense.sg The Astrea 7 Private Equity Bonds is the latest in a series of private equity bonds offered by Azalea Asset Management, a subsidiary of Temasek Holdings. This comes on the back of three previous issues – Astrea IV PE Bonds in 2018, Astrea V PE Bonds in 2019 and Astrea VI PE Bonds in 2021. These ...
US Treasuries
In case you didn't realise, the largest US bondholders for decades, Japan and China, are currently selling the US Treasuries as their domestic currencies, Japanese Yen and Chinese Yuan, are recently sliding into deep depreciation against USD, and that's hurting their economies to fight against the rising inflations.
As such, the trimming of bondholding is necessary to reduce the losses from the falling bond prices, and in exchange of the money collected from the sales of bonds can pass on to offset the effect of the foreign exchange that come about during exportation. Hence, investors need to take note of putting money into the US markets, as the rising US dollars continues to gain strength against other currencies, will in fact rise the currency hedging costs that the fund managers need to stomach and may eventually seek elsewhere for better debt opportunities.
Reference:
Biggest Treasury Buyer Outside U.S. Quietly Selling Billions In times of Treasury turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round. Japanese institutional managers -- known for their legendary U.S ...
Gold
Since April, Russia had announced on pegging its ruble with gold, and the gold's prices had been falling and almost touching 1800 support level. Until last week, gold once again rebounded together with ruble making their correlations more tightly-coupled with the US exchange rate turned softer last week. If investors currently consider to invest in gold, please bear in mind that gold price continue to be very uncertain now with the European Union just announced further proposed sanctions on Russia last week, and may indirectly affect the prices of gold eventually.
Reference:
Russian inflation came in at a two-decade high of 17.8% year-on-year in April, up from 16.7% in March, but price increase began to show signs of slowing.
Conclusion
In my latest issue under My Take and Highlights, I had discussed about the importance of buying into the market whose currency earned a high ranking amongst the most traded international payment currencies worldwide, that is to keep the vibrancy of one market with sufficient liquidities for investors.
Reference:
What is more important than knowing what is the star buy in the market where money are chasing after. Because we all know... Picking a wrong share that is not well-liked by fund managers, is as good as handcuffing ourselves. Hence, Highlights of the Month will suggest you with what are the information that you should know to make a wiser decision in investing your money. Issue #1 Highlights of the Month - May 2022 : International payments currency Knowing which currencies that take the top few...
Other Focus:
Indonesia to lift Palm export ban on Monday
PM Lee congratulates Australia's Prime Minister-elect Anthony Albanese, 59, led the Labor Party on election win last Saturday
Yangzijiang Financial Holding to seek share buyback mandate with June 8 EGM
Changi's Terminal 2 to be re-opened in stages in tandem with air travel recovery
Grab narrows loss by 35% to US$435 million in 1QFY2022
SIA narrows losses significantly in FY2022 to $962.0 mil
Secura Group secures $3 mil security services contract by Sembcorp Industries
PEC awarded $80 mil worth of new contracts
Life Insurance Corporation of India (LIC) was listed at Rs 867 on BSE on 17th May, price down 10% from IPO price
New Astrea 7 structured finance bonds available for retail investors
First REIT divests Siloam Hospitals Surabaya for $40.9 mil
SPAC: Carousell terminated merger talk with L Catterton Asia Acquisition Corp amid market volatility
Yongmao Holdings issues profit warning for 2HFY2022 ended March 31
For Tesla's followers ：
Tesla was removed from S&P 500 ESG Index
Coming Market Focus (Extract):
Monday, May 23, 2022 | |
SGD | CPI, yoy |
HKD | CPI, yoy |
USD | FOMC Member Speaks |
Tuesday, May 24, 2022 | |
USD | Manufacturing PMI |
USD | New Home Sales |
USD | Fed Chair Powell Speaks |
SGD | GDP, yoy, qoq, Q1 |
Wednesday, May 25, 2022 | |
USD | Core Durable Good Orders, mom |
USD | FOMC Meeting Minutes |
USD | Crude Oil Inventories, Gasoline Inventories |
Thursday, May 26, 2022 | |
SGD | Industrial Production, yoy, mom |
USD | GDP, qoq |
USD | GDP Price Index, qoq |
USD | Initial Jobless Claims |
Friday, May 27, 2022 | |
USD | FOMC Member Speaks |
USD | Core PCE Price Index, mom, yoy |
USD | Personal Spending, mom |
News on Blockchain, NFTs and the Metaverse
After prices of cryptos were badly hit last week, the confidence level of this new-aged asset was kind of shake :
Cryptos are crashing, will NFTs be next? | The Straits Times
A symbol of the struggle is the forlorn attempt to re-sell an NFT of Twitter founder Jack Dorsey's first tweet. Mr Dorsey managed to sell the NFT for almost US$3 million last year but the new ...
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Investment Tips 💡 this month (May 2022) :)
"Be a short-term trader" strategy can be continued for this week.
STI continued to drift sideways but we have a new member on board: NIO Automotive. This is an exciting news to the SG market, as the robustness of our economies had made Singapore one of the top choices for MNC companies to seek financial partnership offshore. Such recognition will further strength our positions of the global financial centre in Asia.
But investors can consider to buy into this company in the 2nd half of 2022. Reference:
Electric vehicle maker NIO which ended its first day of trading on SGX at US$17.30, announced it will be included in the Hang Seng TECH Index as a constituent stock, effective June 13, 2022, The Hang Seng TECH Index represents the 30 largest technology companies listed in Hong Kong that have high business exposure to technology themes and pass the index's screening criteria.
CASH PLUS Promotion:
Low-commission trading account is available... and check out for Promotion Details
(Waived for US and HK Foreign Custody fee until 31 December 2022.)
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