Cory Diary : SSB Application and Strategy

For people who are still New to this. SSB is called Singapore Savings Bonds. This is not Treasury or Singapore Bond. Is issued by Singapore Government monthly and will last for 10 years. The total amount of all issues that we can buy is currently limited to $200k.

If we look up in DBS Bank Internet website as an example, we go to the investment applications.

And you select Singapore Savings Bonds.

And then select the issue available.

This issue is attractive for me as I sold some last month to be ready for possible market crash. It doesn't happen or yet. So I am buying back some each month as time goes.

Secondly, the rate for the newer issue is much better. Average 3%.

Thirdly, I can sell and buy anytime. Max 1 month lead time. $2 fee.

Hopes this help for those who are New to this.

Cory

2022-0709

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Cory Diary : SSB - Singapore Saving Bond

SSB - Singapore Saving Bond

With the market crash due to Covid-19, many people is tempted to maximize the rebound by investing in the stock market at lows. And is at this very moment, cash is running low. Cash is basically King in March and still today in June.

One of the way to raise cash is to sell bonds or unwind your fixed deposit positions. So there will be great temptation to release SSB back to the government. I was exploring this idea too which I have max out my SSB between 2 to 2.5% quite long time ago to a trader mind.

I put this into deeper thoughts and decided Not !

1. SSB is a place where I secure my fund to support my home loan repayment and as a emergency fund too. I have yet reach a stage where i can sleep soundly putting this money to work in stock market. Logically I should but I feel my life will be shorten by 5 years from worries if I did even I could gain some monetary rewards.

2.  At 2 to 2.5% this is way better than current new issues or fixed deposits in the market.

3. $200k is quite a lot of money to stuck in there. But I would caution and ask people in similar situation as me to think further in another way.

If one has $500k asset, $200k is 40% of net worth. That's a big chunk but necessary because it is a defensive line. If one is to grow his wealth to $1,000K, that's only 20%. So as one wealth grows, the amount in SSB by ratio get smaller. That's the essence. Fill the bottom safety nets. Whatever overflowed, we can put wherever we want. Over time, we will spring !

But it may takes a long time for many. Yeah, this mean you aren't ready yet.


" Maybe I can explore my fixed deposits. Oh no. Better leave it for 2nd Waves just in case.... ... "


Cory

2020-0602

Cory Diary : Investment Updates 2018-1215

Trades

SSB Switch
Redeem SSB batch starting 1% rate for 2.01%. And a higher 2.45% effective rate.


First Reit

Reviewed First Reit investment for all the years and it still in good positive despite losses this year. If the sponsor sold off remainder of the 10%, the skin in the Reit doesn't appear to be good. Is not like they have a lot in the first place. Spending too much time on this drama for me to follow through so I thought it maybe better for me to move on. As it look like the rebound has stabilized, decided to switch out remainder of it. This will likely make my portfolio more robust for 2019. Ouch ! Nevertheless. House cleaning is never easy.


Frasers Cpt Tr

With sale of some more CMT Reit as it goes up, I use some of the excess  fund to collect FCT which I thought is valued cheaper. I am not sure the last quarterly reported result is normal though or is it beginning of the end. Sorry for the "horror headline" especially from one who just returned to vest on this. Reits generally are not cheap. It can get more expensive due to low rates though despite rate increase by FED.


STI Index
I did a sell trade again on the Index of the recent increment lots with the constant volatility originally meant for some exposure to the banks. Hope I can catch another smallish ride. I prefer to have larger stake in this.


VICOM
I am back on this. Not much discount though. Not easy to get. It will take a larger correction in the general market to put a dent i guess.


Cheers

Cory
2019-1214

Cory Diary : Singapore Savings Bonds experience ( SSB )

This is the website of SSB. http://www.sgs.gov.sg/savingsbonds/Your-SSB/This-months-bond.aspx
Every month SSB will update with new tranche for purchase with appropriate rates as below picture.

Purchase is simple online. I have tested few times using DBS website. Application is $2 each time.
Dividends credited to my DBS saving account after 6 months automatically.

To sell is not hard too as I have tested it literally. However do note your transaction and amount each time you purchase or withdraw as there is no easy access to SSB historical records that you can tell in the website when you sell. Bank statements in the web is backdated to 2 months so provide no helps too. However I do get paper mail statement as equity trades done.

The highest effective interests rate is only if you hold it for 10 years and is quite attractive considering is "risk-less". However if you withdraw like I did, the rates will be reduced per table of the link above and still not bad. There is a limit of 100K even if I want to put more unfortunately.

Unlike traded bond, there is no capital gain or loss. True capital protected in the sense less sovereign risk. Due to SSB nature, in my next dividend and investment reports, I will move them under Cash/Fixed deposit category instead. This will better reflect the right yield and portfolio investment equity returns. Meaning my equity annual dividends report will exclude SSB dividends.

I plan to maximize my allocation surely. It beats Fixed Deposits hand down.


Cory
20170625