October 5, 2012
The Philippines will again issue to the public retail treasury bonds or RTBs as a way of raising funds. The good thing with this debt instrument is that individual investors may have the opportunity to avail of this product because RTBs are sold in retail and do not require huge cash outlay.
In fact, minimum investment is only P5,000 (US$120), with additional investments also in multiples of P5,000 — making RTBs more accessible to the average Filipino investor.
October 1, 2012
It seems like more and more local banks are preferring the use of Long-Term Negotiable Certificates of Deposits (LTNCD) as a way of raising additional funds. Instead of issuing more shares or launching a new debt instrument, banks in the Philippines are resorting to LTNCDs which consumers find more attractive because they are relatively safe yet high-yielding compared to traditional deposits.
September 18, 2012
Real estate developer Visa Land and Lifescapes (VLL), owned by the family of Senator Manny Villar, is using the same strategy employed by Ayala Land Inc. (ALI) to simultaneously raise fresh funds and market to the public its residential units.
Vista Land recently announced details of its HomeBuilder Bonds which pay 5% interest per annum for a total minimum investment of P180,000.
September 10, 2012
We now add another asset class to our investment portfolio. Here are details about Long Term Negotiable Certificate of Deposit or LTNCD — a relatively safe bank product that offers higher interest rate than regular savings accounts.
August 31, 2012
A few days ago, I drove by a Petron outlet to gas up and noticed a poster advertising San Miguel Corporation (SMC)‘s public offering of its “Series 2″ Preferred Shares. There’s nothing illegal about the advertisement. SMC is a primary stockholder of Petron Corp. and they can advertise anything in any of their Petron branches.
August 31, 2012
Ayala Land Inc. (ALI) is offering a new type of bond that will give investors fixed income, plus a bonus credit if and when the investor decides to purchase an Ayala Land residential property.
The Ayala Land Homestarter Bond pays a 5% fixed interest rate per year — decent return from a relatively stable company — but make sure you understand all the terms and conditions of the investment, lest you eventually be convinced to buy a property that you never planned.
August 29, 2012
For most people, bonds and equity (common stock) are the usual options for investment. We have already discussed these two asset classes lengthily. For a refresher course, here’s our primer on Stock Trading and Investing while here is a tutorial on Bonds and Fixed Income.
We now talk about an alternative investment option: Preferred Stocks or Preferred Shares.
August 22, 2012
The National Home Mortgage Finance Corp. (NHMFC) or Pag-ibig has recently issued bonds that even small-time investors can buy and invest in. Last week, the Pag-ibig Fund announced that they are issuing to the public the new series of Bahay Bonds, a five-year mortgage-backed security aimed at raising P300-600 million that Pag-ibig can use to sustain its housing loan services to beneficiaries.
Pag-ibig Fund’s Bahay or Housing Bonds will pay a coupon rate of 4.80% per year. Each bonds costs only P5,000 making it easier for retail investors to participate in this bond offering.
July 9, 2012
SDAs or Special Deposit Accounts are a favorite investment choice of relatively risk-averse people, Filipinos and foreigners alike, looking to park their money in safe, highly-liquid, but high interest-earning instruments.
Such benefits made special deposit accounts very attractive products, which paved the way for more than P1.658 trillion being parked in the central bank’s SDA facility as of June 15, 2012. How big is this amount? Well, this is almost the size of the Philippines’ 2012 budget of P1.816 trillion.
Such humongous amount of peso placements have both advantages and disadvantages.
May 10, 2012
Here’s an investment option for those interested in diversifying their portfolio.
First Gen Corporation (FGEN), the Lopez-owned independent power producer, is issuing to the public up to 100 million Series G perpetual preferred shares for P100 each. The shares guarantee a fixed dividend rate of 7.808% per annum.
What are Preferred Shares?