tag:blogger.com,1999:blog-6025037118864383396.post946388341967601680..comments2023-06-10T17:08:57.683+08:00Comments on Unintelligent Nerd: Taking a closer look at Treasury BillsUnintelligent Nerdhttp://www.blogger.com/profile/17797052565143872922noreply@blogger.comBlogger20125tag:blogger.com,1999:blog-6025037118864383396.post-12816986684734837962018-07-17T20:06:18.075+08:002018-07-17T20:06:18.075+08:00Hi Rainbowcoin,
After thinking so much, in the en...Hi Rainbowcoin,<br /><br />After thinking so much, in the end, I just left my cash in my savings account.<br /><br />I prefer liquidity. :)<br /><br />I heard that T-Bills liquidity in the secondary market is horrible (according to posters above).Unintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-61687245499432652962018-07-16T23:56:05.259+08:002018-07-16T23:56:05.259+08:00Hi UN,
If you want liquidity, best option I think...Hi UN,<br /><br />If you want liquidity, best option I think is to put in DBS multiplier account (or whichever bank that gives good interest rate for hoops that you could jump through).<br />SSB is really not too bad - considering application and redemption fee is just $2 each, and can get bond yield/interest every half a year. At most withdraw soon after getting interest. <br />How's T bills' liquidity in secondary market?Rainbowhttps://www.blogger.com/profile/17762360552800572152noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-65923044866825970962018-06-07T12:10:41.315+08:002018-06-07T12:10:41.315+08:00Hi Miss Niao,
Glad my blog post was informative! ...Hi Miss Niao,<br /><br />Glad my blog post was informative! Yup, SSB's 1st-year yield is linked to T-Bill's yield. <br /><br />I am still thinking where to park my money, lol.Unintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-3965126057960334572018-06-07T11:20:21.800+08:002018-06-07T11:20:21.800+08:00T bill is not liquid compared to SSB. Difficult to...T bill is not liquid compared to SSB. Difficult to cash out like SSB if an unforeseen event happens before maturity. Thats why i mentioned earlier its for those who are very cash rich. So I bought SSB full amount instead.Henryhttps://www.blogger.com/profile/11824479927853149272noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-84798744913336063982018-06-06T21:40:06.779+08:002018-06-06T21:40:06.779+08:00Hello UN,
I didn't know that T-bills existed ...Hello UN,<br /><br />I didn't know that T-bills existed until I read your blog post lol. If the yield is at 1.76%, then I believe that it is comparable to SSB's 1.72% yield in this month's issue. I personally feel that SSB are already pretty liquid and I have also parked a small portion of my emergency funds with them last month. :)Miss Niaohttps://www.blogger.com/profile/10904517747506941250noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-55581448730253879722018-06-05T19:39:02.952+08:002018-06-05T19:39:02.952+08:00Hi SMOL,
Maybe this is a foreshadowing of what is...Hi SMOL,<br /><br />Maybe this is a foreshadowing of what is to come (continuing from our sms convo)! HAHA! Sounds very buay hiao bai like that! :PUnintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-4468869851320157802018-06-05T10:46:05.295+08:002018-06-05T10:46:05.295+08:00Unintelligent Nerd,
I'll have a bit of fun he...Unintelligent Nerd,<br /><br />I'll have a bit of fun here. Don't take what I say too seriously!<br /><br /><br />Buying Treasuries here is like equities laggards buying near the top during 2000 or 2007.<br /><br />But then again, shorting Treasuries have been a widow making trade for the last several years...<br /><br />Who knows?<br /><br />When everyone thinks interest rates are going up, your purchase of Treasuries now may be the contrarian trade like buying equities during 2003 or 2009 ;)<br /><br /><br />Have fun!<br /><br /><br /><br />Institutions buy Treasuries for the capital gains; retail buy for the yield.<br /><br /><br />Singapore Man of Leisurehttps://www.blogger.com/profile/13774067113884418001noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-24585329943322454102018-06-05T07:02:43.213+08:002018-06-05T07:02:43.213+08:00Hey Rolf,
Good to hear from you. Thanks for shari...Hey Rolf,<br /><br />Good to hear from you. Thanks for sharing!<br /><br />Cheers!Unintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-31941269739265407062018-06-05T01:50:20.101+08:002018-06-05T01:50:20.101+08:00Hi UN,
T bill has face value that changes but SSB ...Hi UN,<br />T bill has face value that changes but SSB does not. <br /><br />Have to understand that T bill face value will vary w interest. I believe the reason why invest in ssb lately is bcos it is a hedge agst expected increase of interest. <br /><br />If interest increase, face value of T bill will drop. And if u redeem before maturity, u will incur the face value drop. <br /><br />But SSB face value is constant. <br /><br />Not to ask u which to invest or not invest, just to clarify. <br /><br />maybe can refer to a fellow blogger frd post in 2015. I did already had SSB myself since 2015 n did lots of research back then. <br /><br />http://boringinvestor.blogspot.com/2015/08/getting-best-of-both-ssb-sgs.html?m=1Rolf Sueyhttps://www.blogger.com/profile/10723925075715114650noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-12202448693491831542018-06-03T11:28:08.421+08:002018-06-03T11:28:08.421+08:00Hi Henry,
Thanks for your input. Much appreciated...Hi Henry,<br /><br />Thanks for your input. Much appreciated!<br /><br />CheersUnintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-31478196249554585822018-06-03T11:12:57.488+08:002018-06-03T11:12:57.488+08:00Hi. One need to have the holding power to maturity...Hi. One need to have the holding power to maturity if one is in t bill / treasury. Usually one will lose $ on the capital if one has to liquidate in the secondary mkt. Vol is very thin if not zero on most days.<br />It is more suitable for ppl with huge cash hoard and dont need it at all.Henryhttps://www.blogger.com/profile/11824479927853149272noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-82049397724377266122018-06-03T11:12:49.409+08:002018-06-03T11:12:49.409+08:00Hi. One need to have the holding power to maturity...Hi. One need to have the holding power to maturity if one is in t bill / treasury. Usually one will lose $ on the capital if one has to liquidate in the secondary mkt. Vol is very thin if not zero on most days.<br />It is more suitable for ppl with huge cash hoard and dont need it at all.Henryhttps://www.blogger.com/profile/11824479927853149272noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-72717516514681133262018-06-03T10:19:52.753+08:002018-06-03T10:19:52.753+08:00Hi KPO,
I use the CIMB FastSaver as my salary-cre...Hi KPO,<br /><br />I use the CIMB FastSaver as my salary-crediting savings account. I don't use credit cards and I pay my bills to my mum as everything is under her name, so I can't hit the credit card & bill payment criteria.<br /><br />Yup, that's why if I go the T-Bills route, I have to be dead certain that I will hold for the full duration.Unintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-62374705231058188602018-06-03T10:08:48.230+08:002018-06-03T10:08:48.230+08:00Hi INTJ,
Glad my post has been helpful to you.
...Hi INTJ,<br /><br />Glad my post has been helpful to you. <br /><br />Yes, my understanding aligns with yours. As I do not have direct experience with the bond market, I did not want to comment on that. <br /><br />Cheers!Unintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-22270496856988297172018-06-03T10:01:29.273+08:002018-06-03T10:01:29.273+08:00Haha. Like what INTJ said, the bond price will flu...Haha. Like what INTJ said, the bond price will fluctuate, hence the capital will not be guaranteed... SSB on the other guarantee that the capital will be intact but you lose some liquidity (few weeks to a month). <br /><br />In the current raising interest rate environment, bond price will fall to compensate for the yield... I would think as salaried worker, a typical salary crediting savings account such as Multiplier/OCBC360 would be good enough for 40k cash?KPOhttps://www.blogger.com/profile/11839556977401200489noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-12710486683124395322018-06-02T22:37:16.018+08:002018-06-02T22:37:16.018+08:00Hi unN
Thanks for the insights . I was thinking o...Hi unN<br /><br />Thanks for the insights . I was thinking of going into t bonds / bills to enhance my portfolio allocation. You did most of the research for me.<br /><br />If my understanding is now wrong, <br />T bonds and bills have a slight speculative element whereby bond prices can fluctuate if divested / bought prior to maturity. <br /><br />Singapore savings bond despite its name, is more of an enhanced savings account which encourages long term savings rather than a bond as it cannot be sold / bought in the secondary market. INTJhttps://www.blogger.com/profile/01423976981165427180noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-46484638827816176672018-06-02T20:32:46.105+08:002018-06-02T20:32:46.105+08:00Thanks Passive Income Farmer for the info. Cheers!...Thanks Passive Income Farmer for the info. Cheers!Unintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-11696208154111367422018-06-02T20:16:38.077+08:002018-06-02T20:16:38.077+08:00I used POEMS. I don't think there was transact...I used POEMS. I don't think there was transaction fees. I stopped when the yield dropped below 2.5%. <br /><br />Cheers!Passive Income Farmerhttps://www.blogger.com/profile/16102752201629603007noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-54646307574620916372018-06-02T19:45:38.920+08:002018-06-02T19:45:38.920+08:00Hi Passive Income Former,
Welcome! Glad you enjoy...Hi Passive Income Former,<br /><br />Welcome! Glad you enjoyed it.<br /><br />Just curious, there is no administrative fees and application fees, but are there any transaction fees when you applied for them in the past?<br /><br />Thanks!Unintelligent Nerdhttps://www.blogger.com/profile/17797052565143872922noreply@blogger.comtag:blogger.com,1999:blog-6025037118864383396.post-77960608329466483292018-06-02T18:06:15.745+08:002018-06-02T18:06:15.745+08:00Hi UN,
I had T-Bills in the past. But the yield g...Hi UN,<br /><br />I had T-Bills in the past. But the yield got lower and lower; and I did not purchase anymore.<br /><br />Thanks for your post and maybe I will take a look too.<br /><br />Cheers! Passive Income Farmerhttps://www.blogger.com/profile/16102752201629603007noreply@blogger.com