OCBC posts 5% jump in Q3 profit, beating expectations
Posted 27 Oct 2016 09:15 Updated 27 Oct 2016 09:20
SINGAPORE: The Oversea-Chinese Banking Corp (OCBC) beat estimates with a 5 per cent rise in quarterly profit in the third quarter of the year, helped by gains from its insurance and wealth management units, according to its financial results released on Thursday (Oct 27).
However, the bank warned of a challenging operating environment. The city-state's lenders must contend with growing risks to earnings as credit woes deepen for the offshore services sector, which has been hit hard by a drop-off in orders due to a near-two year rout in oil prices until early this year.
Net profit for Singapore's second-biggest bank came in at S$943 million in the third quarter as its insurance and wealth management business powered a 25 per cent climb in non-interest income.
The result handily beat expectations for a decline in profit with the average estimate at S$834 million from five analysts polled by Reuters.
But provisions for bad debt jumped almost 11 per cent to S$166 million, while net interest income dropped 6 per cent due to lower loan volumes and a weaker net interest margin.
"We continue to keep a firm grip on cost, maintain strong liquidity and capital, and ensure prudent levels of provisioning," OCBC Chief Executive Samuel Tsien said in a statement.
Offshore firms that have said they are struggling with debt payments include oilfield services company Swiber Holdings, which was placed under judicial management this month.
Signs of weakness in a trade-dependent economy and the domestic property market are also further squeezing loan demand.
- Reuters/mz
- wong chee tat :)
Showing posts with label loans. Show all posts
Showing posts with label loans. Show all posts
Thursday, October 27, 2016
Sunday, August 21, 2016
4,841 HDB flats on offer in August BTO exercise
4,841 HDB flats on offer in August BTO exercise
Posted 17 Aug 2016 10:40 Updated 18 Aug 2016 17:58
SINGAPORE: A total of 4,841 Build-To-Order (BTO) flats were launched on Wednesday (Aug 17), the Housing and Development Board (HDB) announced.
Five new BTO projects were launched - three in the non-mature towns of Hougang, Sembawang and Yishun, and another two projects in the mature town of Tampines, it said in its press release.
The flats are priced from S$79,000, excluding grants, for a two-room Flexi flat in Hougang and Yishun to S$428,000, excluding grants, for a 3Gen flat in Tampines.
Interested applicants for the current exercise may submit an application online at HDB's InfoWEB from Aug 17 to Aug 23. They can also apply at HDB Hub or any of HDB's branches.
This is the third BTO launch for 2016, bringing the total number of BTO flats offered this year to 12,781 units. Together with the 5,170 balance flats offered in the May exercise, HDB has offered a total of 17.951 flats for sale this year.
Another 5,090 BTO flats in Bedok, Bidadari, Kallang Whampoa and Punggol will be launched in November, while about 5,000 balance flats will also be made available in the concurrent Sale of Balance Flats exercise, HDB said.
- CNA/av
- wong chee tat :)
Posted 17 Aug 2016 10:40 Updated 18 Aug 2016 17:58
SINGAPORE: A total of 4,841 Build-To-Order (BTO) flats were launched on Wednesday (Aug 17), the Housing and Development Board (HDB) announced.
Five new BTO projects were launched - three in the non-mature towns of Hougang, Sembawang and Yishun, and another two projects in the mature town of Tampines, it said in its press release.
The flats are priced from S$79,000, excluding grants, for a two-room Flexi flat in Hougang and Yishun to S$428,000, excluding grants, for a 3Gen flat in Tampines.
Interested applicants for the current exercise may submit an application online at HDB's InfoWEB from Aug 17 to Aug 23. They can also apply at HDB Hub or any of HDB's branches.
This is the third BTO launch for 2016, bringing the total number of BTO flats offered this year to 12,781 units. Together with the 5,170 balance flats offered in the May exercise, HDB has offered a total of 17.951 flats for sale this year.
Another 5,090 BTO flats in Bedok, Bidadari, Kallang Whampoa and Punggol will be launched in November, while about 5,000 balance flats will also be made available in the concurrent Sale of Balance Flats exercise, HDB said.
- CNA/av
- wong chee tat :)
Wednesday, August 17, 2016
Monday, July 25, 2016
'Too early' to lift property cooling measures: MAS chief
'Too early' to lift property cooling measures: MAS chief
Posted 25 Jul 2016 13:00 Updated 25 Jul 2016 16:46
SINGAPORE: It is "too early" for the Government to consider lifting the property cooling measures currently in place, as it looks to make sure the gains "painstakingly made" are entrenched, said Mr Ravi Menon, the managing director of the Monetary Authority of Singapore (MAS), on Monday (Jul 25).
Speaking at the central bank's annual report briefing, Mr Menon said it is also to make sure the local property market is on a "sustainable path" and that household balance sheets become stronger to "withstand shocks".
Mr Menon's comments reiterated National Development Minister Lawrence Wong's own, which were made during the Committee of Supply debate in Parliament in April. He said that while the cooling measures have been effective in stabilising the property market, relaxing them too early may risk a premature market rebound.
The MAS chief said the contribution to accommodation costs to inflation has come down significantly, while the balance sheets for households show signs of strengthening with the moderating of annual growth in household debt.
He added that the property market has been stabilising over the last two years since its peak in the third quarter of 2013. That said, property prices went up 60 per cent between 2009 to 2013, while nominal incomes increased only 30 per cent during the same period.
"The risk of a renewed surge in property prices is not trivial given that interest rates are likely to remain low and global investors continue to search for yield." said Mr Menon.
"And while the growth in household debt has eased considerably, it will take time for household balance sheets to strengthen and become more resilient to interest rate and income shocks," he added.
The MAS, Ministry of Finance and Ministry of National Development will continue to closely monitor developments in the property market, the MAS chief said.
MAS has introduced several cooling measures since 2013, including raising the rates for Additional Buyer's Stamp Duty (ABSD) and capping the Mortgage Servicing Ratio for housing loans granted for public housing by financial institutions at 30 per cent of a borrower's gross monthly income.
However, there have been voices calling for the lifting of such measures, particularly from developers. The Real Estate Developers' Association of Singapore, for one, said in February that there is a need to ensure a soft landing to prevent further damage to an already fragile local economy.
Property analysts Channel NewsAsia spoke with were divided on the issue. Chief executive of PropNex Realty Mohamad Ismail Gafoor said cooling measures that concern an individual's debt ratio should stay for the long term.
But he said the Additional Buyer's Stamp Duty (ABSD) that Singaporeans and foreigners are subjected to for their second property could be revisited. Foreigners will be subjected to 15 per cent of ABSD for their second property, while Singaporeans will have to pay seven percent.
"15 per cent of a property worth $3 million will come close to half a million dollars, which means people could buy properties in other countries just on ABSD. What is happening is a fair number of Singaporeans, because of the ABSD are buying properties in other parts of the world. We already have a Total Debt Servicing Ratio. Why do we need to penalise Singaporeans for buying a second property within their means and not stretching themselves?"
Mr Ismail said reducing the ABSD from 15 per cent to between five and 10 per cent for foreigners, and doing the same for Singaporeans, would encourage more people to invest in the local property market. This could be a positive sign for developers who have been struggling in recent years,
Century 21 chief executive Ku Swee Yong highlighted Mr Menon's comments on the gap between property prices and income growth, which was about 30 per cent. In the last two and a half years, the gap has dropped by about nine per cent. Mr Ku said the authorities are of the mindset that "there is still some way to go".
He said the government's wait-and-see attitude might also hinge on risks not apparent to observers and analysts: "What they can see would include families that have stretched themselves to buy industrial, retail and office real estate in the last four years, where strata titles - small sized commercial properties - were selling like hotcakes. "
Mr Ku said these loans are classified under commercial property loans and many investors have set up private limited companies to buy such real estate, and take on the loan under their companies.
The recent release of second quarter property figures also showed the number of private residential transactions "suddenly" spiking, as developers slashed prices and offered incentives to buyers. "If the government were to relax policy measures, there would be further encouragement for the market to buy even more," he said.
- CNA/kk
- wong chee tat :)
Posted 25 Jul 2016 13:00 Updated 25 Jul 2016 16:46
SINGAPORE: It is "too early" for the Government to consider lifting the property cooling measures currently in place, as it looks to make sure the gains "painstakingly made" are entrenched, said Mr Ravi Menon, the managing director of the Monetary Authority of Singapore (MAS), on Monday (Jul 25).
Speaking at the central bank's annual report briefing, Mr Menon said it is also to make sure the local property market is on a "sustainable path" and that household balance sheets become stronger to "withstand shocks".
Mr Menon's comments reiterated National Development Minister Lawrence Wong's own, which were made during the Committee of Supply debate in Parliament in April. He said that while the cooling measures have been effective in stabilising the property market, relaxing them too early may risk a premature market rebound.
The MAS chief said the contribution to accommodation costs to inflation has come down significantly, while the balance sheets for households show signs of strengthening with the moderating of annual growth in household debt.
He added that the property market has been stabilising over the last two years since its peak in the third quarter of 2013. That said, property prices went up 60 per cent between 2009 to 2013, while nominal incomes increased only 30 per cent during the same period.
"The risk of a renewed surge in property prices is not trivial given that interest rates are likely to remain low and global investors continue to search for yield." said Mr Menon.
"And while the growth in household debt has eased considerably, it will take time for household balance sheets to strengthen and become more resilient to interest rate and income shocks," he added.
The MAS, Ministry of Finance and Ministry of National Development will continue to closely monitor developments in the property market, the MAS chief said.
MAS has introduced several cooling measures since 2013, including raising the rates for Additional Buyer's Stamp Duty (ABSD) and capping the Mortgage Servicing Ratio for housing loans granted for public housing by financial institutions at 30 per cent of a borrower's gross monthly income.
However, there have been voices calling for the lifting of such measures, particularly from developers. The Real Estate Developers' Association of Singapore, for one, said in February that there is a need to ensure a soft landing to prevent further damage to an already fragile local economy.
Property analysts Channel NewsAsia spoke with were divided on the issue. Chief executive of PropNex Realty Mohamad Ismail Gafoor said cooling measures that concern an individual's debt ratio should stay for the long term.
But he said the Additional Buyer's Stamp Duty (ABSD) that Singaporeans and foreigners are subjected to for their second property could be revisited. Foreigners will be subjected to 15 per cent of ABSD for their second property, while Singaporeans will have to pay seven percent.
"15 per cent of a property worth $3 million will come close to half a million dollars, which means people could buy properties in other countries just on ABSD. What is happening is a fair number of Singaporeans, because of the ABSD are buying properties in other parts of the world. We already have a Total Debt Servicing Ratio. Why do we need to penalise Singaporeans for buying a second property within their means and not stretching themselves?"
Mr Ismail said reducing the ABSD from 15 per cent to between five and 10 per cent for foreigners, and doing the same for Singaporeans, would encourage more people to invest in the local property market. This could be a positive sign for developers who have been struggling in recent years,
Century 21 chief executive Ku Swee Yong highlighted Mr Menon's comments on the gap between property prices and income growth, which was about 30 per cent. In the last two and a half years, the gap has dropped by about nine per cent. Mr Ku said the authorities are of the mindset that "there is still some way to go".
He said the government's wait-and-see attitude might also hinge on risks not apparent to observers and analysts: "What they can see would include families that have stretched themselves to buy industrial, retail and office real estate in the last four years, where strata titles - small sized commercial properties - were selling like hotcakes. "
Mr Ku said these loans are classified under commercial property loans and many investors have set up private limited companies to buy such real estate, and take on the loan under their companies.
The recent release of second quarter property figures also showed the number of private residential transactions "suddenly" spiking, as developers slashed prices and offered incentives to buyers. "If the government were to relax policy measures, there would be further encouragement for the market to buy even more," he said.
- CNA/kk
- wong chee tat :)
Thursday, June 30, 2016
UOB suspends London property loans after Brexit
UOB suspends London property loans after Brexit
Posted 30 Jun 2016 10:14 Updated 30 Jun 2016 15:19
SINGAPORE: United Overseas Bank (UOB), Singapore's third-largest lender, has suspended its loans programme for London properties in the wake of uncertainties caused by Britain's vote to leave the European Union.
UOB would be among the first banks in Singapore to turn cautious on such lending, even though it is not a large amount, as Brexit spooked global markets and pushed the pound to multi-year lows.
"We will temporarily stop receiving foreign property loan applications for London properties," a UOB spokeswoman said in an email.
"As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments."
Singapore's biggest lender, DBS Group Holdings, said it continued to provide financing for property purchases in London but was advising its customers to be cautious.
"For customers interested in buying properties in London, we would advise them to assess the situation carefully before committing to their purchases as there could be potential foreign exchange and sovereign risks," Ms Tok Geok Peng, executive director of secured lending, consumer banking group (Singapore) at DBS Bank, said in an email.
The Singapore dollar has gained about 10 per cent against the British pound since the referendum.
"There have been London properties available for the last few months before the Brexit. The question is whether these properties can still continue to receive buyers in the short-term," said Ms Alice Tan, head of consultancy and research at Knight Frank Singapore.
Property consultants say data on the number of properties purchased by Singaporeans in the United Kingdom is not tracked that closely. Banks do not disclose lending data for UK property purchases.
UOB said it was monitoring the market environment closely and would review it regularly to determine when it could resume its property loan offering.
- REUTERS/cy
- wong chee tat :)
Posted 30 Jun 2016 10:14 Updated 30 Jun 2016 15:19
SINGAPORE: United Overseas Bank (UOB), Singapore's third-largest lender, has suspended its loans programme for London properties in the wake of uncertainties caused by Britain's vote to leave the European Union.
UOB would be among the first banks in Singapore to turn cautious on such lending, even though it is not a large amount, as Brexit spooked global markets and pushed the pound to multi-year lows.
"We will temporarily stop receiving foreign property loan applications for London properties," a UOB spokeswoman said in an email.
"As the aftermath of the UK referendum is still unfolding and given the uncertainties, we need to ensure our customers are cautious with their London property investments."
Singapore's biggest lender, DBS Group Holdings, said it continued to provide financing for property purchases in London but was advising its customers to be cautious.
"For customers interested in buying properties in London, we would advise them to assess the situation carefully before committing to their purchases as there could be potential foreign exchange and sovereign risks," Ms Tok Geok Peng, executive director of secured lending, consumer banking group (Singapore) at DBS Bank, said in an email.
The Singapore dollar has gained about 10 per cent against the British pound since the referendum.
"There have been London properties available for the last few months before the Brexit. The question is whether these properties can still continue to receive buyers in the short-term," said Ms Alice Tan, head of consultancy and research at Knight Frank Singapore.
Property consultants say data on the number of properties purchased by Singaporeans in the United Kingdom is not tracked that closely. Banks do not disclose lending data for UK property purchases.
UOB said it was monitoring the market environment closely and would review it regularly to determine when it could resume its property loan offering.
- REUTERS/cy
- wong chee tat :)
Monday, June 27, 2016
Flashy lifestyles hide hints of credit card woes
Flashy lifestyles hide hints of credit card woes
By Chew Hui Yan Posted 25 Jun 2016 15:16 Updated 26 Jun 2016 02:22
SINGAPORE: They flash their credits cards at high-end restaurants and hang out at hip nightspots. The more adventurous among them think nothing about taking yearly vacations in the most exotic, far-flung places.
But such a lifestyle has also been identified as the main reason young professionals tend to rack up unsecured debts, Credit Counselling Singapore (CCS) said.
The organisation, which helps people clear their debts, believes a lot of this is due to peer pressure.
“If you have friends who go clubbing a lot, you might feel pressured to go with them because if you don’t, you’d start to lose your friends,” CCS president Kuo How Nam said in an interview with Channel NewsAsia.
This pressure might eventually lead to an unsustainable lifestyle, which is further glamourised on social media platforms like Snapchat and Instagram.
“Don’t be fooled; people might post pictures of designer bags and nice restaurants but what you don’t see is how much they owe,” Mr Kuo said.
“Once, I picked up an issue of Tatler magazine (a luxury publication targeted at high-net-worth individuals) and recognised a client. Social status is more a function of how much you spend rather than how much you have.”
The CCS administers the Repayment Assistant Scheme, which was introduced in April last year to help those with large unsecured debts.
In 2015, it counselled 4,675 people, of which about 11 per cent were aged 30 and below. People aged 31 to 40 make up more than one third (about 1,800) of the total.
The CCS said this could be due to several reasons. For instance, people aged 31 to 40 may have young children and parents to look after; younger ones are less likely to have such responsibilities. Younger professionals thus are under less pressure financially and have greater freedom to spend on themselves.
Another contributing factor is the fact that one needs a minimum annual income of S$30,000 to be eligible to apply for a credit card. This means young adults who have just entered the workforce might not even qualify.
Mr Alfred Chia, the chief executive officer of financial planning company SingCapital, also noted that young professionals tend to have better financial literacy and responsibility compared to the older generation.
“The numbers are healthy and we’ve seen an increase in young working adults seeking financial planning,” he said. Over the last five years, SingCapital has seen an annual increase of 8 to 10 per cent in clients aged 30 and below.
Despite these encouraging statistics, Mr Kuo offered this note of caution for young professionals: “Be careful. How you spend your money is affected by who you mix with. This determines your lifestyle which decides whether or not you get into debt.”
It is also never too early for young professionals to start planning their finances, said Mr Chia. “It is normal for us to deviate from our plan but having one will remind us to come back to it,” he said.
For more on unsecured debt, catch Channel NewsAsia’s Spotlight segment on Sunday, Jun 26, at 10pm.
- CNA/av
- wong chee tat :)
By Chew Hui Yan Posted 25 Jun 2016 15:16 Updated 26 Jun 2016 02:22
SINGAPORE: They flash their credits cards at high-end restaurants and hang out at hip nightspots. The more adventurous among them think nothing about taking yearly vacations in the most exotic, far-flung places.
But such a lifestyle has also been identified as the main reason young professionals tend to rack up unsecured debts, Credit Counselling Singapore (CCS) said.
The organisation, which helps people clear their debts, believes a lot of this is due to peer pressure.
“If you have friends who go clubbing a lot, you might feel pressured to go with them because if you don’t, you’d start to lose your friends,” CCS president Kuo How Nam said in an interview with Channel NewsAsia.
This pressure might eventually lead to an unsustainable lifestyle, which is further glamourised on social media platforms like Snapchat and Instagram.
“Don’t be fooled; people might post pictures of designer bags and nice restaurants but what you don’t see is how much they owe,” Mr Kuo said.
“Once, I picked up an issue of Tatler magazine (a luxury publication targeted at high-net-worth individuals) and recognised a client. Social status is more a function of how much you spend rather than how much you have.”
The CCS administers the Repayment Assistant Scheme, which was introduced in April last year to help those with large unsecured debts.
In 2015, it counselled 4,675 people, of which about 11 per cent were aged 30 and below. People aged 31 to 40 make up more than one third (about 1,800) of the total.
The CCS said this could be due to several reasons. For instance, people aged 31 to 40 may have young children and parents to look after; younger ones are less likely to have such responsibilities. Younger professionals thus are under less pressure financially and have greater freedom to spend on themselves.
Another contributing factor is the fact that one needs a minimum annual income of S$30,000 to be eligible to apply for a credit card. This means young adults who have just entered the workforce might not even qualify.
Mr Alfred Chia, the chief executive officer of financial planning company SingCapital, also noted that young professionals tend to have better financial literacy and responsibility compared to the older generation.
“The numbers are healthy and we’ve seen an increase in young working adults seeking financial planning,” he said. Over the last five years, SingCapital has seen an annual increase of 8 to 10 per cent in clients aged 30 and below.
Despite these encouraging statistics, Mr Kuo offered this note of caution for young professionals: “Be careful. How you spend your money is affected by who you mix with. This determines your lifestyle which decides whether or not you get into debt.”
It is also never too early for young professionals to start planning their finances, said Mr Chia. “It is normal for us to deviate from our plan but having one will remind us to come back to it,” he said.
For more on unsecured debt, catch Channel NewsAsia’s Spotlight segment on Sunday, Jun 26, at 10pm.
- CNA/av
- wong chee tat :)
Friday, June 10, 2016
Home Loan Rates - DBS
Home Loan Rates - DBS
- wong chee tat :)
Rates are applicable for residential properties (including HDB), quoted on per annum basis and are subject to change without prior notice.
| For purchase of property Fixed Deposit Home Rate (FHR) Floating Rate Package |
Rates
|
|---|---|
| Year 1 | FHR18 + 1.30% |
| Year 2 | FHR18 + 1.30% |
| Year 3 | FHR18 + 1.30% |
| Year 4 and thereafter | FHR18 + 1.30% |
No lock-in period. Fixed Deposit Home Rate (FHR18) refers to the prevailing 18 months Singapore dollar fixed deposit interest rate of DBS Bank for amounts within $1,000 to $9,999 or such other sum as we may specify. The current FHR18 is 0.600% per annum.
| For refinance of property Fixed Deposit Home Rate (FHR) Floating Rate Package |
Rates
|
|---|---|
| Year 1 | FHR18 + 1.30% |
| Year 2 | FHR18 + 1.30% |
| Year 3 | FHR18 + 1.30% |
| Year 4 and thereafter | FHR18 + 1.30% |
No lock-in period. Cash rebate is given for loan amount of $500,000 or more. Fixed Deposit Home Rate (FHR18) refers to the prevailing 18 months Singapore dollar fixed deposit interest rate of DBS Bank for amounts within $1,000 to $9,999 or such other sum as we may specify. The current FHR18 is 0.600% per annum.
| Singapore Interbank Offered Rate (SIBOR) Floating Rate Package |
Rates
|
|---|---|
| Year 1 | 3-month SIBOR + 0.80% |
| Year 2 | 3-month SIBOR + 0.80% |
| Year 3 | 3-month SIBOR + 0.80% |
| Year 4 and thereafter | 3-month SIBOR + 1.25% |
3-month SIBOR refers to the 3-month Singapore Interbank Offered Rate based on the 11a.m. fixing by ABS on the first business day of the month. Click here to view the latest SIBOR rates, under the Rates & Fees tab.
| Fixed Rate Package |
Rates
|
|---|---|
| Year 1 | 1.80% |
| Year 2 | 1.80% |
| Year 3 | 1.80% |
| Year 4 and thereafter | FHR18 + 1.20% |
Comes with a 3-year lock-in period. Fixed Deposit Home Rate (FHR18) refers to the prevailing 18 months Singapore dollar fixed deposit interest rate of DBS Bank for amounts within $1,000 to $9,999 or such other sum as we may specify. The current FHR18 is 0.600% per annum.
- wong chee tat :)
Wednesday, January 27, 2016
Positive Cash Flow or Postive Cash Flow?
Positive Cash Flow or Postive Cash Flow?
- Pics from Internet
- wong chee tat :)
Saturday, January 16, 2016
Revision of the Home Loan Board Rate – Singapore Residential Financing Rate (SRFR) - Maybank
Revision of the Home Loan Board Rate – Singapore Residential Financing Rate (SRFR)
Please be informed that the SRFR will be revised from 3.75% p.a. to 4.00% p.a. with effect from 18 February 2016.
Since the introduction of the Singapore Residential Financing Rate (SRFR) in 2007, this is the first time a revision will be made. The revision is undertaken after much consideration and in view of the prevailing market conditions.
Your loan interest rate and monthly instalment will be affected by this SRFR revision if your loan interest rate is pegged:
How much will your monthly instalment be revised?
Your monthly instalment will increase as a result of this SRFR revision. The increase in monthly instalment amount is estimated at S$12 for every S$100,000 loan.
However, your monthly instalment will not be revised immediately, we will write to you in March 2016 to inform you of your revised monthly instalment which will commence from April 2016.
Using CPF funds to service your monthly instalment?
For private property
If you are using your CPF funds (partially or fully) to service your monthly instalment, you may submit your application for revision :
You may wish to note the processing period required by CPF Board for effecting such revisions, as any shortfall in the amount received by the bank through CPF Board will be debited from your designated Maybank loan servicing deposit account.
For HDB property
If you have previously submitted the “Letter of Authorisation” to the bank, any revision to your monthly instalment will be automatically updated with the CPF Board hence no further action is required on your part.
If you have not submitted the “Letter of Authorisation” previously and you are using your CPF funds (partially or fully) to service your monthly instalment, you may submit your application for revision :
You may wish to note the processing period required by CPF Board for effecting such revisions, as any shortfall in the amount received by the bank through CPF Board will be debited from your designated Maybank loan servicing deposit account.
To find out if you have previously submitted the “Letter of Authorisation”, you can call us at 1800 629 2265 (1800 MAYBANK).
|
- womg chee tat :)
Wednesday, January 13, 2016
三个月SIBOR连续两天大涨
三个月SIBOR连续两天大涨
胡渊文 2016年01月13日 1626
|
（联合早报网讯）由于人民币贬值拖累新元汇率，本地的基准利率三个月新元银行同业拆息率（SIBOR）连续两天大涨，攀升到2008年11月以来的最高水平。
三个月SIBOR继前日冲破1.20％的大关后，今天攀升3个基点，达到1.249％。
另一个基准利率三个月新元掉期利率（SOR）星期二晚大涨9个基点至1.72498％，突破1.7％的水平，也是七年多来的最高水平。
- See more at: http://www.zaobao.com.sg/realtime/singapore/story20160113-570485#sthash.ae5z3UW0.dpuf
- wong chee tat :)
胡渊文 2016年01月13日 1626
|
（联合早报网讯）由于人民币贬值拖累新元汇率，本地的基准利率三个月新元银行同业拆息率（SIBOR）连续两天大涨，攀升到2008年11月以来的最高水平。
三个月SIBOR继前日冲破1.20％的大关后，今天攀升3个基点，达到1.249％。
另一个基准利率三个月新元掉期利率（SOR）星期二晚大涨9个基点至1.72498％，突破1.7％的水平，也是七年多来的最高水平。
- See more at: http://www.zaobao.com.sg/realtime/singapore/story20160113-570485#sthash.ae5z3UW0.dpuf
- wong chee tat :)
3-month Sibor crosses 1.25% mark
3-month Sibor crosses 1.25% mark
The three-month Singapore Interbank Offered Rate was fixed at 1.252 per cent on Wednesday, up from 1.249 per cent on Tuesday.
Posted 13 Jan 2016 20:50
SINGAPORE: A key benchmark interest rate used to price home loans rose again on Wednesday (Jan 13), crossing the 1.25 per cent mark to reach a level last seen about seven years ago.
According to data from the Association of Banks in Singapore, the three-month Singapore Interbank Offered Rate (Sibor) was fixed at 1.252 per cent on Wednesday, up from 1.249 per cent on Tuesday.
The three-month Sibor stood at 1.185 per cent at the end of 2015, having risen by around half a percentage point over the course of the year.
Interest rates in Singapore have risen over the past week and a half amid increasing concerns about China. The turmoil in financial markets has also hit the Singapore dollar, which traded around 1.4338 to the US dollar late Wednesday in Asia compared with 1.4122 at the start of 2016.
- CNA/ek
- wong chee tat :)
The three-month Singapore Interbank Offered Rate was fixed at 1.252 per cent on Wednesday, up from 1.249 per cent on Tuesday.
Posted 13 Jan 2016 20:50
SINGAPORE: A key benchmark interest rate used to price home loans rose again on Wednesday (Jan 13), crossing the 1.25 per cent mark to reach a level last seen about seven years ago.
According to data from the Association of Banks in Singapore, the three-month Singapore Interbank Offered Rate (Sibor) was fixed at 1.252 per cent on Wednesday, up from 1.249 per cent on Tuesday.
The three-month Sibor stood at 1.185 per cent at the end of 2015, having risen by around half a percentage point over the course of the year.
Interest rates in Singapore have risen over the past week and a half amid increasing concerns about China. The turmoil in financial markets has also hit the Singapore dollar, which traded around 1.4338 to the US dollar late Wednesday in Asia compared with 1.4122 at the start of 2016.
- CNA/ek
- wong chee tat :)
Tuesday, January 5, 2016
DBS, Manulife tie-up takes aim at Asia’s growing insurance market
DBS, Manulife tie-up takes aim at Asia’s growing insurance market
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in," Mr Richard Vargo, regional head of bancassurance at DBS Bank says.
By Tang See Kit, Channel NewsAsia
Posted 05 Jan 2016 14:44
SINGAPORE: The official launch of a 15-year regional distribution deal between Singapore’s DBS Bank and Canadian insurer Manulife Financial Asia on Tuesday (Jan 5) marks the latest move by companies aiming to gain access into one of the world’s fastest-growing life-insurance markets.
Mr Richard Vargo, regional head of bancassurance at DBS Bank, said at the press conference on Tuesday: “The middle class in this part of the world will expand by more than three times to 1.8 billion by 2020.”
Despite this explosive growth, Asia remains largely under-insured, Mr Vargo added.
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in,” he said.
Manulife's chief financial officer Steve Roder agreed, noting that "Asia is fundamentally important" to the Canadian life insurer.
"The deal is expected to add materially to insurance sales in Asia from the first year and improve the bank's insurance position especially in Singapore," said Mr Roder, adding that the agreement could catapult Singapore into Manulife's third leading market in Asia, behind Hong Kong and Japan.
Manulife also expects the partnership to help boost core earnings per share in 2017.
The access to DBS' large and growing retail, wealth and small and medium enterprise (SME) customer base of six million will help Manulife to "deepen and diversify its distribution, while increasing scale and capabilities", added Mr Roder.
S$100M PLUNGE INTO DIGITAL TECH
Both companies also announced plans to make "mutual long-term commitments and investments", such as co-funding up to S$100 million over the next 15 years into digital technology and innovation enhancements plans.
Manulife noted the emphasis on digital enhancements is in line with the changes of how consumers now access banking services. Mobile banking platforms, for instance, are particularly popular in China.
"We want to take bank insurance to the next level in Asia and be the most advanced bank insurance platform in the region," Mr Roder said.
DBS Group Head of Consumer Banking and Wealth Management Tan Su Shan agreed, noting that there is also a shift from Internet to mobile among consumers in Singapore and that it is "imperative to ensure that the digital journey is seamless".
According to a joint filing to the Singapore Exchange in April 2015, Manulife will pay DBS an initial payment of US$1.2 billion, as well as additional variable payments based on the success of the bancassurance partnership. The bancassurance model refers to insurance products distributed through a bank's branch network rather than through individual insurance agents.
Manulife is taking over UK insurer Aviva, which was the primary distributor of insurance products via DBS' Asian branch network since 2001.
Global insurers keen to tap into one of the world's fastest-growing life insurance markets have been courting Asian lenders over the years, offering attractive prices for multi-year exclusive access to the banks' branch networks across the region.
Prudential last year renewed a 15-year distribution agreement with Standard Chartered. This came on the back of AIA Group inking a 15-year exclusive deal with Citibank to distribute its insurance products via the lender's Asia-Pacific retail branch network in 2013.
The billion-dollar tie-up between DBS and Manulife is reportedly the last major agreement of its kind until HSBC considers a new deal in 2022, according to Reuters.
- CNA/av
- wong chee tat :)
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in," Mr Richard Vargo, regional head of bancassurance at DBS Bank says.
By Tang See Kit, Channel NewsAsia
Posted 05 Jan 2016 14:44
SINGAPORE: The official launch of a 15-year regional distribution deal between Singapore’s DBS Bank and Canadian insurer Manulife Financial Asia on Tuesday (Jan 5) marks the latest move by companies aiming to gain access into one of the world’s fastest-growing life-insurance markets.
Mr Richard Vargo, regional head of bancassurance at DBS Bank, said at the press conference on Tuesday: “The middle class in this part of the world will expand by more than three times to 1.8 billion by 2020.”
Despite this explosive growth, Asia remains largely under-insured, Mr Vargo added.
"While Asia's middle class is increasing, it is also rapidly ageing, with citizens aged above 60 years old expected to triple to 1.3 billion by 2050. This is a tremendous opportunity in a business that we have strong advantage in,” he said.
Manulife's chief financial officer Steve Roder agreed, noting that "Asia is fundamentally important" to the Canadian life insurer.
"The deal is expected to add materially to insurance sales in Asia from the first year and improve the bank's insurance position especially in Singapore," said Mr Roder, adding that the agreement could catapult Singapore into Manulife's third leading market in Asia, behind Hong Kong and Japan.
Manulife also expects the partnership to help boost core earnings per share in 2017.
The access to DBS' large and growing retail, wealth and small and medium enterprise (SME) customer base of six million will help Manulife to "deepen and diversify its distribution, while increasing scale and capabilities", added Mr Roder.
S$100M PLUNGE INTO DIGITAL TECH
Both companies also announced plans to make "mutual long-term commitments and investments", such as co-funding up to S$100 million over the next 15 years into digital technology and innovation enhancements plans.
Manulife noted the emphasis on digital enhancements is in line with the changes of how consumers now access banking services. Mobile banking platforms, for instance, are particularly popular in China.
"We want to take bank insurance to the next level in Asia and be the most advanced bank insurance platform in the region," Mr Roder said.
DBS Group Head of Consumer Banking and Wealth Management Tan Su Shan agreed, noting that there is also a shift from Internet to mobile among consumers in Singapore and that it is "imperative to ensure that the digital journey is seamless".
According to a joint filing to the Singapore Exchange in April 2015, Manulife will pay DBS an initial payment of US$1.2 billion, as well as additional variable payments based on the success of the bancassurance partnership. The bancassurance model refers to insurance products distributed through a bank's branch network rather than through individual insurance agents.
Manulife is taking over UK insurer Aviva, which was the primary distributor of insurance products via DBS' Asian branch network since 2001.
Global insurers keen to tap into one of the world's fastest-growing life insurance markets have been courting Asian lenders over the years, offering attractive prices for multi-year exclusive access to the banks' branch networks across the region.
Prudential last year renewed a 15-year distribution agreement with Standard Chartered. This came on the back of AIA Group inking a 15-year exclusive deal with Citibank to distribute its insurance products via the lender's Asia-Pacific retail branch network in 2013.
The billion-dollar tie-up between DBS and Manulife is reportedly the last major agreement of its kind until HSBC considers a new deal in 2022, according to Reuters.
- CNA/av
- wong chee tat :)
Tuesday, December 29, 2015
Loans growth expected to decrease further next year: Banking analysts
Loans growth expected to decrease further next year: Banking analysts
Banks are also expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in many different guises.
By Nicole Tan
Posted 29 Dec 2015 19:55
SINGAPORE: With a cloudy economic outlook for next year, Singapore banks are likely to see a squeeze on their earnings. According to banking analysts, loans growth is expected to decrease even further as a result, and credit risk may go up.
Meanwhile, banks are expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in different guises, from personal data theft to pilfering funds.
Banks in Singapore have also cited criminality as the top concern they currently face, in a recent industry survey by PricewaterhouseCoopers (PwC). Amid a fast-evolving digital landscape, observers said the biggest challenges facing banks in Singapore are technology-related.
PwC Singapore Assurance & Financial Services partner, Karen Loon, said: "The top risk was around criminality which relates to risk of cyber (technology), also money laundering and tax. So that's interesting because while there's been a lot of concern globally, the banks are doing quite a lot to try to improve the environment around cyber (technology) together with regulators.
“The second area is around technology risk. Technology risk is really around the concern around the core banking systems not being able to cope."
While banks upgrade internal infrastructure to cope with changes in technology, analysts said the external environment also presents increasingly significant challenges to growing the topline.
LOAN GROWTH EXPECTED TO SLOW
For the whole of 2015, analysts expect growth in the overall loan books for Singapore banks to come in at about 5 per cent. However, they warned that this could slow down even further in 2016.
Standard & Poor's Financial Services Ratings Director, Ivan Tan, said: "Interest income of Singapore banks is the bulk of profitability or revenue source, which means the net profit will also face some headwinds.
“Between 2013 and 2015, while domestic growth has slowed down, overseas growth was able to compensate for slowness in domestic growth. But now, with China-led regional slowdown, even the overseas loan expansion has come down as well. So on the whole, we'll be seeing slower loans growth of between 3 and 5 per cent for 2016."
Slowdown in the region is also expected to put pressure on asset quality. According to the Monetary Authority of Singapore's Financial Stability report in November, non-performing loans made up about 1.5 per cent of Singapore banks' overall loan books in the third quarter of 2015, up from 1.1 per cent a year ago.
The fallout in commodities prices and slowdown in regional economies were cited as the main macroeconomic concerns.
UBS Wealth Management Chief Investment Officer for Southern APAC, Kelvin Tay, said: "Banks exposed to commodity sector, in particular oil and gas, and banks exposed to ASEAN itself, will probably be more vulnerable to banks not exposed to these areas.
“We think ASEAN is probably going through a structural and cyclical slowdown that will last for at least the next three years."
Another credit risk, analysts said, is the anticipated rise in interest rates as the US Federal Reserve normalises monetary policy. Still, higher interest rates are seen as a double-edged sword, with higher interest margins helping to support interest income.
"Net-net, the increase in interest margins on the loan was still more than able to offset the incremental credit cost they have, so banks are better off in that sense," said Mr Tan. "But overall if you take into account slower loans growth, and higher credit cost they have to set aside, the profit upside is not that much."
Despite a challenging external environment, observers said Singapore lenders remain resilient, with strong capital and liquidity buffers to withstand shocks. Still, analysts have said 2016 is likely to be a cautious year, as the banks adopt a more defensive stance and focus on maintaining loan quality and keeping costs low.
- CNA/xk
- wong chee tat :)
Banks are also expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in many different guises.
By Nicole Tan
Posted 29 Dec 2015 19:55
SINGAPORE: With a cloudy economic outlook for next year, Singapore banks are likely to see a squeeze on their earnings. According to banking analysts, loans growth is expected to decrease even further as a result, and credit risk may go up.
Meanwhile, banks are expected to further step up efforts next year to stay ahead in the digital revolution, with cybercrime coming in different guises, from personal data theft to pilfering funds.
Banks in Singapore have also cited criminality as the top concern they currently face, in a recent industry survey by PricewaterhouseCoopers (PwC). Amid a fast-evolving digital landscape, observers said the biggest challenges facing banks in Singapore are technology-related.
PwC Singapore Assurance & Financial Services partner, Karen Loon, said: "The top risk was around criminality which relates to risk of cyber (technology), also money laundering and tax. So that's interesting because while there's been a lot of concern globally, the banks are doing quite a lot to try to improve the environment around cyber (technology) together with regulators.
“The second area is around technology risk. Technology risk is really around the concern around the core banking systems not being able to cope."
While banks upgrade internal infrastructure to cope with changes in technology, analysts said the external environment also presents increasingly significant challenges to growing the topline.
LOAN GROWTH EXPECTED TO SLOW
For the whole of 2015, analysts expect growth in the overall loan books for Singapore banks to come in at about 5 per cent. However, they warned that this could slow down even further in 2016.
Standard & Poor's Financial Services Ratings Director, Ivan Tan, said: "Interest income of Singapore banks is the bulk of profitability or revenue source, which means the net profit will also face some headwinds.
“Between 2013 and 2015, while domestic growth has slowed down, overseas growth was able to compensate for slowness in domestic growth. But now, with China-led regional slowdown, even the overseas loan expansion has come down as well. So on the whole, we'll be seeing slower loans growth of between 3 and 5 per cent for 2016."
Slowdown in the region is also expected to put pressure on asset quality. According to the Monetary Authority of Singapore's Financial Stability report in November, non-performing loans made up about 1.5 per cent of Singapore banks' overall loan books in the third quarter of 2015, up from 1.1 per cent a year ago.
The fallout in commodities prices and slowdown in regional economies were cited as the main macroeconomic concerns.
UBS Wealth Management Chief Investment Officer for Southern APAC, Kelvin Tay, said: "Banks exposed to commodity sector, in particular oil and gas, and banks exposed to ASEAN itself, will probably be more vulnerable to banks not exposed to these areas.
“We think ASEAN is probably going through a structural and cyclical slowdown that will last for at least the next three years."
Another credit risk, analysts said, is the anticipated rise in interest rates as the US Federal Reserve normalises monetary policy. Still, higher interest rates are seen as a double-edged sword, with higher interest margins helping to support interest income.
"Net-net, the increase in interest margins on the loan was still more than able to offset the incremental credit cost they have, so banks are better off in that sense," said Mr Tan. "But overall if you take into account slower loans growth, and higher credit cost they have to set aside, the profit upside is not that much."
Despite a challenging external environment, observers said Singapore lenders remain resilient, with strong capital and liquidity buffers to withstand shocks. Still, analysts have said 2016 is likely to be a cautious year, as the banks adopt a more defensive stance and focus on maintaining loan quality and keeping costs low.
- CNA/xk
- wong chee tat :)
Monday, November 30, 2015
Singapore bank lending shrank in October, credit card billings rose
Singapore bank lending shrank in October, credit card billings rose
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August.
POSTED: 30 Nov 2015 13:09
SINGAPORE: Bank lending in Singapore fell for the second straight month in October as loans to businesses declined, data from the Monetary Authority of Singapore (MAS) showed on Monday (Nov 30).
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August, in a sign that economic activity is slowing. Compared to a year ago, bank lending fell 0.4 per cent.
Loans to businesses fell 1.9 per cent month-on-month to S$360.2 billion in October, while consumer loans edged up 0.2 per cent to S$241.5 billion.
Meanwhile, credit card billings rose 5.6 per cent in October from a year ago to S$4.115 billion.
Banks wrote off S$28 million in bad debts, up from S$27.2 million in September and S$26.4 million a year ago.
The rate of increase in bad credit card debts – at 6.1 per cent year-on-year – was, however, much slower than the rise seen in recent months.
- CNA/cy
- wong chee tat :)
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August.
POSTED: 30 Nov 2015 13:09
SINGAPORE: Bank lending in Singapore fell for the second straight month in October as loans to businesses declined, data from the Monetary Authority of Singapore (MAS) showed on Monday (Nov 30).
Total loans and advances by banks amounted to S$601.7 billion in October, down from S$608.3 billion in September and S$613.5 billion in August, in a sign that economic activity is slowing. Compared to a year ago, bank lending fell 0.4 per cent.
Loans to businesses fell 1.9 per cent month-on-month to S$360.2 billion in October, while consumer loans edged up 0.2 per cent to S$241.5 billion.
Meanwhile, credit card billings rose 5.6 per cent in October from a year ago to S$4.115 billion.
Banks wrote off S$28 million in bad debts, up from S$27.2 million in September and S$26.4 million a year ago.
The rate of increase in bad credit card debts – at 6.1 per cent year-on-year – was, however, much slower than the rise seen in recent months.
- CNA/cy
- wong chee tat :)
Sunday, November 22, 2015
Commercial paper: more risk, less reward
Commercial paper: more risk, less reward
Bankrate.com
By Constance Gustke | Bankrate.com – Tue, Jul 5, 2011 6:00 PM SGT
Considering investing in commercial paper? Think again. It offers lower rates than money markets and requires more scrutiny.The tricky part is weighing benefits against risks for each issue, because commercial paper isn't insured by the Federal Deposit Insurance Corp.Commercial paper is short-term, unsecured debt issued by corporations. Firms use this money to finance operations, because rates are usually cheaper than those for their long-term debt. But don't expect higher yields to compensate for the added risk."These days, commercial paper has low rates," says Bob Williams, senior vice president of Delta Trust Investments in Little Rock, Ark. For example, UBS' 30-day commercial paper paid 0.06 percent in mid-June, which is lower than money markets.Little-known to investors, commercial paper is similar to zero-coupon bonds. Both are issued at a discount and accrete at the face value. Maturities on commercial paper are less than 270 days, capped by government restrictions. But the commercial paper market is big and growing, currently amounting to more than $1.162 trillion, according to the Federal Reserve. Issuers are usually highly rated companies, making the paper fairly liquid because there's less risk and more investor demand. Lower-rated commercial paper typically means more risk and less demand.
For future big purchases
On the upside, commercial paper is a good place to sock away large amounts of money for big, future purchases. Minimum investments usually amount to $100,000.But commercial paper is unsecured, and not backed by assets of any kind, says Eric Randolph, portfolio manager at Hopwood Financial Services Inc. in Great Falls, Va. Jittery investors may want the comfort of insured money markets instead.Here's a rundown of risks to consider:
It trades in large increments. Though it usually sells for $100,000 per issue, some brokers chop it up into smaller $10,000 increments. "This rules out lots of investors," Williams says. For investors with less cash, money markets that invest in commercial paper are a better bet.
Interest on commercial paper is taxable. Parking lots of money in commercial paper means you'll get hit with taxable interest. "If you're wealthy, there may be a better place to go," Williams says.
They're not FDIC-insured. Because commercial paper is issued by corporations and not financial institutions, you forgo any FDIC insurance. Instead, your investment is secured only by the company's income flow and not by assets.
"And if the flow is gone, so is your security," says Daniel Wesley, chief executive officer of CreditLoan.com and a commercial paper investor. "You're hedging your bets." However, defaults are rare, he says.
The Securities and Exchange Commission doesn't regulate the commercial paper market. So, Wesley advises investors to carefully select issues, looking at creditworthiness. Check commercial paper ratings at Moody's or Standard & Poor's, which assign credit ratings.
Diversification is more difficult. Because commercial paper denominations are so large, spreading out your risk among lots of issues is challenging. "Under $500,000, your investment risk is spread too thinly," Wesley says. "You're safer with over $1 million to invest."
Conversely, money market funds that invest in commercial paper offer much more diversification since you're spreading risk among many different issues. "Don't put all your eggs in one basket," Williams says.
Strong issues, lower interest
Recently, commercial paper paid a paltry 0.15 percent for 90-day paper issued by nonfinancial companies, according to the Federal Reserve. You can track rates at FederalReserve.gov. But money market funds paid a heftier 0.68 percent rate in late June, according to Bankrate's rate search tool."Going with lower-quality paper means you'll get higher rates," says Randolph. But you'll have to take more credit risks, he says.Fortunately, highly rated companies usually issue commercial paper. Lesser-rated companies have difficulty selling their paper to investors. A stronger commercial paper market was spurred by the Lehman Brothers default in 2008. It crushed the commercial paper market and caused two money market funds holding paper to break the buck, which happens when net asset value falls below $1 per share. After that, even rock-solid corporations such as Coca-Cola Co. fled the commercial paper market."Mostly, you see big-name issuers like IBM, Cisco and Johnson & Johnson these days," Randolph says.Still, money market funds holding commercial paper have downsides, too. "You don't know what's inside your money market," Randolph says. "With specific paper, you know what you're buying."
- wong chee tat :)
Bankrate.com
By Constance Gustke | Bankrate.com – Tue, Jul 5, 2011 6:00 PM SGT
Considering investing in commercial paper? Think again. It offers lower rates than money markets and requires more scrutiny.The tricky part is weighing benefits against risks for each issue, because commercial paper isn't insured by the Federal Deposit Insurance Corp.Commercial paper is short-term, unsecured debt issued by corporations. Firms use this money to finance operations, because rates are usually cheaper than those for their long-term debt. But don't expect higher yields to compensate for the added risk."These days, commercial paper has low rates," says Bob Williams, senior vice president of Delta Trust Investments in Little Rock, Ark. For example, UBS' 30-day commercial paper paid 0.06 percent in mid-June, which is lower than money markets.Little-known to investors, commercial paper is similar to zero-coupon bonds. Both are issued at a discount and accrete at the face value. Maturities on commercial paper are less than 270 days, capped by government restrictions. But the commercial paper market is big and growing, currently amounting to more than $1.162 trillion, according to the Federal Reserve. Issuers are usually highly rated companies, making the paper fairly liquid because there's less risk and more investor demand. Lower-rated commercial paper typically means more risk and less demand.
For future big purchases
On the upside, commercial paper is a good place to sock away large amounts of money for big, future purchases. Minimum investments usually amount to $100,000.But commercial paper is unsecured, and not backed by assets of any kind, says Eric Randolph, portfolio manager at Hopwood Financial Services Inc. in Great Falls, Va. Jittery investors may want the comfort of insured money markets instead.Here's a rundown of risks to consider:
It trades in large increments. Though it usually sells for $100,000 per issue, some brokers chop it up into smaller $10,000 increments. "This rules out lots of investors," Williams says. For investors with less cash, money markets that invest in commercial paper are a better bet.
Interest on commercial paper is taxable. Parking lots of money in commercial paper means you'll get hit with taxable interest. "If you're wealthy, there may be a better place to go," Williams says.
They're not FDIC-insured. Because commercial paper is issued by corporations and not financial institutions, you forgo any FDIC insurance. Instead, your investment is secured only by the company's income flow and not by assets.
"And if the flow is gone, so is your security," says Daniel Wesley, chief executive officer of CreditLoan.com and a commercial paper investor. "You're hedging your bets." However, defaults are rare, he says.
The Securities and Exchange Commission doesn't regulate the commercial paper market. So, Wesley advises investors to carefully select issues, looking at creditworthiness. Check commercial paper ratings at Moody's or Standard & Poor's, which assign credit ratings.
Diversification is more difficult. Because commercial paper denominations are so large, spreading out your risk among lots of issues is challenging. "Under $500,000, your investment risk is spread too thinly," Wesley says. "You're safer with over $1 million to invest."
Conversely, money market funds that invest in commercial paper offer much more diversification since you're spreading risk among many different issues. "Don't put all your eggs in one basket," Williams says.
Strong issues, lower interest
Recently, commercial paper paid a paltry 0.15 percent for 90-day paper issued by nonfinancial companies, according to the Federal Reserve. You can track rates at FederalReserve.gov. But money market funds paid a heftier 0.68 percent rate in late June, according to Bankrate's rate search tool."Going with lower-quality paper means you'll get higher rates," says Randolph. But you'll have to take more credit risks, he says.Fortunately, highly rated companies usually issue commercial paper. Lesser-rated companies have difficulty selling their paper to investors. A stronger commercial paper market was spurred by the Lehman Brothers default in 2008. It crushed the commercial paper market and caused two money market funds holding paper to break the buck, which happens when net asset value falls below $1 per share. After that, even rock-solid corporations such as Coca-Cola Co. fled the commercial paper market."Mostly, you see big-name issuers like IBM, Cisco and Johnson & Johnson these days," Randolph says.Still, money market funds holding commercial paper have downsides, too. "You don't know what's inside your money market," Randolph says. "With specific paper, you know what you're buying."
- wong chee tat :)
MORE PEOPLE IN CREDIT CARD DEBT
MORE PEOPLE IN CREDIT CARD DEBT
ACCORDING TO THE CREDIT BUREAU SINGAPORE, THE TOTAL NUMBER OF DELINQUENT DEBTORS HIT MORE THAN 101,490 THIS YEAR
Nov 22, 2015 6:00am
BY SEOW YUN RONG
He had a good job that paid him $7,500 a month but the way he used his credit cards, you would think he earned a lot more.
The debts snowballed and before Mr Toh knew it, he owed $103,000 to the banks.
His story is typical of many who have been caught up in a credit card debt situation which has spiralled out of control.
In 2011, the total number of delinquent debtors was just over 73,000.
These are people who pay nothing or less than the minimum sum on their credit card debts.
According to the Credit Bureau Singapore, it has hit more than 101,493 this year.
It is the same story with revolving debtors who roll their credit card debts by covering at least the minimum sum.
More people are also turning to debt counsellors for help.
According to Credit Counselling Singapore (CCS), the biggest credit card debt this year is a whopping $1,552,000.
Mr Toh, too, had no choice but to pick up the phone when he realised he had lost all control.
As with everything, it started small.
The 39-year-old, who now works as a sales officer and part-time taxi driver, was a regional sales manager in 2005 and frequently travelled.
He carried several credit cards to cover his travelling expenses, which his employers reimbursed the following month.
Despite the reimbursement, he'd pay only the monthly minimum sum of $2,500 for his five credit cards for about three years.
He says: "I was earning quite a decent sum then, so I thought I could give my family a better life and pay back the following month."
But he lost track of how much he was spending and how much he could claim, he adds.
Besides paying his parents' medical bills of about $1,000 a month, he would also take his family of seven to restaurants and shopping malls twice a week. A night out typically cost $300.
QUIT JOB
It all went downhill after Mr Toh quit his job in 2012.
He then earned only about $3,500 as a part-time sales officer and taxi driver but the debts followed him.
He says: "At that time, I only thought of my family. I didn't have the motivation to pay more than the minimum sum for my debts."
He did not have enough left over to cover the $2,500 minimum payment each month.
Mr Toh took a bank loan of $10,000 to pay off his credit card debts, only to find out that it was not enough and that loan accumulated interest, too.
His credit card debt snowballed to $103,000 and his financial struggles contributed to his divorce in 2012.
Last year, he finally sought help from CCS.
He now follows the Debt Management Programme which will help him clear all his debt in the next three years.
He says he is thankful for the help from CCS. His sisters are also helping by paying for their parents' medical bills.
Mr Toh says: "Without the support from CCS and my family, I don't think I could ever finish paying my debt."
People who need help shouldn't wait, says Ms Tan Huey Min of CCS.
"People with a debt issue have to deal with it as soon as possible before it snowballs into a greater sum every month," she adds.
Debtors must be mindful of economy
Last month, Prime Minister Lee Hsien Loong warned that Singapore must brace itself for a possible downturn.
Ms Tan Huey Min of Credit Counselling Singapore (CCS) says debtors have to be mindful of the economy and how it will affect their income.
"Once they know that their income is affected, they have to take quick actions to solve the problem before it snowballs into a greater debt," she says.
She adds that while some people gamble their way into debt, the top reason for getting into credit card debt is overspending.
Here's how two individuals found themselves on the slippery slope of credit card debt.
SHOPPING
Mr Nor, 57, often used his credit cards when shopping in Malaysia and Indonesia.
Thinking that he was saving money because of the exchange rate, he used his credit cards to pay for almost everything.
He says: "It was so convenient to keep using my credit cards even in supermarkets."
Mr Nor was earning about $2,000 a month as an administrative officer and an extra $1,000 as a part-time driver.
In 2009, he lost his part-time job and had incurred a debt of about $60,000 from using four credit cards and from four bank loans.
Even though he paid the total minimum sum of $2,000 a month for four years, he still owed $60,000 in 2013 because of interest.
He says: "When the bank warned me about paying immediately, I was so afraid because if I didn't pay up, they said they would take me to court."
He has been on CCS' Debt Management Programme (DMP) for about two years now. In four years' time, he will be debt-free.
GAMBLING
By the time he hit rock bottom in 2012, regional product manager Lee, 44, had a debt of $550,000.
His problem was gambling. He said he would often take foreign visitors to the casinos here but eventually developed an interest in gaming himself.
He says: "The boredom I had after work eventually led to me gambling just for fun.
"As my bets got bigger and bigger, using the credit card became very convenient."
To pay off his credit card debts, he took up three bank loans but continued gambling while paying $1,000 to cover the minimum sum for the three cards he had.
He has been on the DMP for two years and has been paying his debt regularly since then.
Learn to manage your debt
A talk on debt management will be held today at Khoo Teck Puat Hospital.
Jointly organised by National Addictions Management Service, Khoo Teck Puat Hospital and North West Community Development Council, the talk is open to the public.
WHAT About National Addictions Awareness Day WHEN Today, 10am to 3pm WHERE Khoo Teck Puat Hospital
For more details, go to www.nams.sg/arc
BY THE NUMBERS
TOTAL NUMBER OF CREDIT CARD HOLDERS IN SINGAPORE
1,611,008
2015
1,388,828
2011
DEBTORS SEEKING HELP
3,308
2015
2,458
2014
1,838
2013
AVERAGE DEBT PER DEBTOR WHO SOUGHT HELP
$99,623.25
2015
$82,940.25
2013
DELINQUENT DEBTORS (PAYING NOTHING OR LESS THAN MINIMUM SUM)
101,493
2015
73,607
2011
REVOLVING DEBTORS (ROLLING DEBT BY COVERING ONLY MINIMUM SUM)
566,966
2015
510,687
2011
BIGGEST DEBT AMOUNT$1,552,000
2015
$1,281,042
2014
$1,707,657
2013
All figures are from Credit Bureau Singapore and Credit Counselling Singapore. Figures for this year are as of September.
Helplines
The Association of Banks in Singapore introduced the Repayment Assistance Scheme (RAS) this year to help borrowers reduce their credit card debt and other unsecured credit loans over time.
The RAS is administered by the Credit Counseling Singapore (CCS), which centralises repayment solutions.
To be eligible, your income must be less than $120,000 per annum and your outstanding unsecured debt must be greater than your annual income before June 1 this year.
RAS: 6996-6006
CCS: 6225-5227
National Addictions Management Service: 1800-6668-668
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ACCORDING TO THE CREDIT BUREAU SINGAPORE, THE TOTAL NUMBER OF DELINQUENT DEBTORS HIT MORE THAN 101,490 THIS YEAR
Nov 22, 2015 6:00am
BY SEOW YUN RONG
He had a good job that paid him $7,500 a month but the way he used his credit cards, you would think he earned a lot more.
The debts snowballed and before Mr Toh knew it, he owed $103,000 to the banks.
His story is typical of many who have been caught up in a credit card debt situation which has spiralled out of control.
In 2011, the total number of delinquent debtors was just over 73,000.
These are people who pay nothing or less than the minimum sum on their credit card debts.
According to the Credit Bureau Singapore, it has hit more than 101,493 this year.
It is the same story with revolving debtors who roll their credit card debts by covering at least the minimum sum.
More people are also turning to debt counsellors for help.
According to Credit Counselling Singapore (CCS), the biggest credit card debt this year is a whopping $1,552,000.
Mr Toh, too, had no choice but to pick up the phone when he realised he had lost all control.
As with everything, it started small.
The 39-year-old, who now works as a sales officer and part-time taxi driver, was a regional sales manager in 2005 and frequently travelled.
He carried several credit cards to cover his travelling expenses, which his employers reimbursed the following month.
Despite the reimbursement, he'd pay only the monthly minimum sum of $2,500 for his five credit cards for about three years.
He says: "I was earning quite a decent sum then, so I thought I could give my family a better life and pay back the following month."
But he lost track of how much he was spending and how much he could claim, he adds.
Besides paying his parents' medical bills of about $1,000 a month, he would also take his family of seven to restaurants and shopping malls twice a week. A night out typically cost $300.
QUIT JOB
It all went downhill after Mr Toh quit his job in 2012.
He then earned only about $3,500 as a part-time sales officer and taxi driver but the debts followed him.
He says: "At that time, I only thought of my family. I didn't have the motivation to pay more than the minimum sum for my debts."
He did not have enough left over to cover the $2,500 minimum payment each month.
Mr Toh took a bank loan of $10,000 to pay off his credit card debts, only to find out that it was not enough and that loan accumulated interest, too.
His credit card debt snowballed to $103,000 and his financial struggles contributed to his divorce in 2012.
Last year, he finally sought help from CCS.
He now follows the Debt Management Programme which will help him clear all his debt in the next three years.
He says he is thankful for the help from CCS. His sisters are also helping by paying for their parents' medical bills.
Mr Toh says: "Without the support from CCS and my family, I don't think I could ever finish paying my debt."
People who need help shouldn't wait, says Ms Tan Huey Min of CCS.
"People with a debt issue have to deal with it as soon as possible before it snowballs into a greater sum every month," she adds.
Debtors must be mindful of economy
Last month, Prime Minister Lee Hsien Loong warned that Singapore must brace itself for a possible downturn.
Ms Tan Huey Min of Credit Counselling Singapore (CCS) says debtors have to be mindful of the economy and how it will affect their income.
"Once they know that their income is affected, they have to take quick actions to solve the problem before it snowballs into a greater debt," she says.
She adds that while some people gamble their way into debt, the top reason for getting into credit card debt is overspending.
Here's how two individuals found themselves on the slippery slope of credit card debt.
SHOPPING
Mr Nor, 57, often used his credit cards when shopping in Malaysia and Indonesia.
Thinking that he was saving money because of the exchange rate, he used his credit cards to pay for almost everything.
He says: "It was so convenient to keep using my credit cards even in supermarkets."
Mr Nor was earning about $2,000 a month as an administrative officer and an extra $1,000 as a part-time driver.
In 2009, he lost his part-time job and had incurred a debt of about $60,000 from using four credit cards and from four bank loans.
Even though he paid the total minimum sum of $2,000 a month for four years, he still owed $60,000 in 2013 because of interest.
He says: "When the bank warned me about paying immediately, I was so afraid because if I didn't pay up, they said they would take me to court."
He has been on CCS' Debt Management Programme (DMP) for about two years now. In four years' time, he will be debt-free.
GAMBLING
By the time he hit rock bottom in 2012, regional product manager Lee, 44, had a debt of $550,000.
His problem was gambling. He said he would often take foreign visitors to the casinos here but eventually developed an interest in gaming himself.
He says: "The boredom I had after work eventually led to me gambling just for fun.
"As my bets got bigger and bigger, using the credit card became very convenient."
To pay off his credit card debts, he took up three bank loans but continued gambling while paying $1,000 to cover the minimum sum for the three cards he had.
He has been on the DMP for two years and has been paying his debt regularly since then.
Learn to manage your debt
A talk on debt management will be held today at Khoo Teck Puat Hospital.
Jointly organised by National Addictions Management Service, Khoo Teck Puat Hospital and North West Community Development Council, the talk is open to the public.
WHAT About National Addictions Awareness Day WHEN Today, 10am to 3pm WHERE Khoo Teck Puat Hospital
For more details, go to www.nams.sg/arc
BY THE NUMBERS
TOTAL NUMBER OF CREDIT CARD HOLDERS IN SINGAPORE
1,611,008
2015
1,388,828
2011
DEBTORS SEEKING HELP
3,308
2015
2,458
2014
1,838
2013
AVERAGE DEBT PER DEBTOR WHO SOUGHT HELP
$99,623.25
2015
$82,940.25
2013
DELINQUENT DEBTORS (PAYING NOTHING OR LESS THAN MINIMUM SUM)
101,493
2015
73,607
2011
REVOLVING DEBTORS (ROLLING DEBT BY COVERING ONLY MINIMUM SUM)
566,966
2015
510,687
2011
BIGGEST DEBT AMOUNT$1,552,000
2015
$1,281,042
2014
$1,707,657
2013
All figures are from Credit Bureau Singapore and Credit Counselling Singapore. Figures for this year are as of September.
Helplines
The Association of Banks in Singapore introduced the Repayment Assistance Scheme (RAS) this year to help borrowers reduce their credit card debt and other unsecured credit loans over time.
The RAS is administered by the Credit Counseling Singapore (CCS), which centralises repayment solutions.
To be eligible, your income must be less than $120,000 per annum and your outstanding unsecured debt must be greater than your annual income before June 1 this year.
RAS: 6996-6006
CCS: 6225-5227
National Addictions Management Service: 1800-6668-668
- wong chee tat :)
Saturday, November 21, 2015
NOVEMBER 2015 2nd Open Bidding Exercise
CATEGORY
|
QUOTA
|
BIDS RECEIVED
|
QP($)
|
PQP($)
| |
|---|---|---|---|---|---|
| A | CAR UP TO 1600CC & 97KW | 1662 | 2140 | 59,200 | 56,832 |
| B | CAR ABOVE 1600CC OR 97KW | 1029 | 1388 | 61,103 | 59,798 |
| C | GOODS VEHICLE & BUS | 247 | 389 | 45,890 | 44,831 |
| D | MOTORCYCLE | 329 | 436 | 6,502 | 6,265 |
| E | OPEN | 365 | 519 | 62,019 | - |
- wong chee tat :)
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