Good Investment - OCBC Preference Shares

OCBC 5.1% NCPS is a good investment. It is suitable for investors who want to beat inflation and the current pathetic bank's interest rates.  At yesterday's closing price of S$102.5, I have calculated the YTM (yield to maturity) to be 4.66%.  This means that of you invest S$102.5 in this preference share, and hold it till maturity on 20 Sept 2018, you will earn for yourself 4.66% annually.

I have about half of my savings invested in strong singapore preference shares and bonds.  I like to invest in this asset class for the following reasons that I will summarize here:

1. Stable returns - Bonds have outperformed the equity market since 1997. (See above)
2. No currency risk - Strong Sing dollar
3. Little credit risk - Well managed economy with strong corporate governance
4. Better yields than savings and fixed deposits
5. Reasonable yields compared with property yield without hassles, fees.

Queuing to buy F&N bonds 3.15%

As per my weekly routine, I am queuing to buy F&N 3.5% bonds at $1 per unit.  This strategy is called "waiting for a rabbit under a tree".  My broker has this feature "good till date", that allows me to queue for a counter for a week.  It may take more than a month before i get to buy it.  That makes it so much more satisfying - as I will be buying at value.