investment in a bond with good return in Thailand?

[Scouse123]

Guys,

Just sharing but not offering advice.

I am informed by Krung Thai bank today that a bond sale for 3 years is available offering 3.75% per annum. The company is SCG Thailand, the giant cement company. Interst is paid 3 months In arrears.

Three year terms are available. Do your own due diligencee on the company please.

[bbi1]

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

Edited February 24, 2015 by bbi1

[CharlieH]

Moved to "Investment" forum

Moved

[rotary]

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

Top interest in the USA for CDs(Long term deposit for the rest of the world)if you lock up for 5 years is 2.36% right now. Most banks are on +/-1% in the USA.

[new2here]

On the surface that sounds quite good. Naturally due diligence in terms of issuer credit rating, bond provisions (sinking fund, call protection, etc) is required, but overall for investment grade paper (assuming it is rated as such) and on the short end of the curve, is quite attractive.

[Scouse123]

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

You know it was just an idea for passive invesment. Obviously a Warren Buffet like you doesn't need this kind of information.

Sorry, I bothered.

[scorecard]

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A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

Slow down and read what the OP said. He/she didn't say it was a good return or anything even suggests it's a good return.

[Naam]

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

if you think by buying a bond with a 3 year maturity you are tying up your money for that period you don't have any idea about bonds

[Naam]

On the surface that sounds quite good. Naturally due diligence in terms of issuer credit rating, bond provisions (sinking fund, call protection, etc) is required, but overall for investment grade paper (assuming it is rated as such) and on the short end of the curve, is quite attractive.

Siam Cement is rated investment grade "single A".

[asdecas]

There are a whole range of corporate funds available in Thailand, some paying 7-8%. However, care is needed: as mentioned, there is the inherent investment risk. Then there is the exchange rate risk if you are changing money into Baht, and you also need to pay attention to the capital cost.

An example from one broker's newsletter earlier this month: TRUEIF – even after a gain of 9.4% YTD the fund is still yielding 7.6% with promise of further capital gains.

[jippytum]

How come no one mentioned the 15% tax lability.You can reclaim it if you are UK citizen

Edited February 24, 2015 by petermjeffreys

[Surasak]

How come no one mentioned the 15% tax lability.You can reclaim it if you are UK citizen

Would you mind expanding on that statement please? I would be intereste to know how it works.

[bbi1]

Slow down and read what the OP said. He/she didn't say it was a good return or anything even suggests it's a good return.

You obviously didn't read the title of the thread

[Jaggg88]

Slow down and read what the OP said. He/she didn't say it was a good return or anything even suggests it's a good return.

You obviously didn't read the title of the thread

The title was a question? not a statement! So as you clearly have so much knowledge on good returns how about sharing with us.

[meatboy]

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

pathetic return? so where would you be looking[greece]

[fletchsmile]

CPAll also have a bond issue coming along in March. 5 years @ 4.1% or 2 years @ 3.55%. They will deduct 15% witholding tax (WHT), so you physically receive net 3.485% on the 5 yr and a tad over 3% on the 2 year.

http://www.nationmultimedia.com/business/CP-All-sets-Bt15-bn-to-expand-7-Eleven-and-Makro-n-30254787.html

I bought a CPALL one a year or so back paying 4.1% gross, 3.485% net for 3 years, with interest paid semi-annually.

People's objectives and attitudes to risk vary. Some of my reasons for doing at the time:

- I thought this was OK at the time to lock in a bit higher yield than the banks were paying, given the possibility of lower rates, (which has since happened).

- More risk than a bank account which is protected by DPA, while this isn't, for a slightly higher yield, and as it's in THB there's no currency risk if you're measuring your income and expenditure in THB living in Thailand.

- provides a bit of regular fixed medium term income for my wife if something happens to me (as I stuck it in her name).

- The idea was to add a few more different Thai issuers, but after that I didn't see many I liked for the rates offered

- Find a little bit of middle ground between the higher risk higher reward parts of my investments portfolio, and cash rates

I wouldn't want to put all our money into it these type of bonds, but as OP says, for some people, they may suit them for some of their money for THB returns. Depends on what someone is trying to achieve...

Cheers

Fletch

Edited February 25, 2015 by fletchsmile

[ravip]

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

Pray, mention something YOU consider good, please.

[bbi1]

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

pathetic return? so where would you be looking[greece] alt=w00t.gif>

Search on the internet & do your own research. Everyone should be able to find investments in their home countries that can easily return them at lease 10%p.a. to a lot more than that.

A "good return"??? You've gotta be joking. I guess you & I have different opinions on what a "good return" is lol. I'd be looking at a lot better high yielding investments & for those investments not to be in Thailand. Why would you tie your cash up for 3 years for such a pathetic return?

Pray, mention something YOU consider good, please.

20%p.a. and above.

Edited February 25, 2015 by bbi1

[bbi1]

Slow down and read what the OP said. He/she didn't say it was a good return or anything even suggests it's a good return.

You obviously didn't read the title of the thread

The title was a question? not a statement! So as you clearly have so much knowledge on good returns how about sharing with us.

If it was a question then it was a very poorly formed sentence. Why is there no question in the actual post also & it only says "Just sharing but not offering advice...."