I started serious Investing Journey in Jan 2000 to create wealth through long-term investing and short-term trading; but as from April 2013 my Journey in Investing has changed to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

Since 2017 after retiring from full-time job as employee; I am moving towards Investing Nirvana - Freehold Investment Income for Life investing strategy where 100% of investment income from portfolio investment is cashed out to support household expenses i.e. not a single cent of re-investing!

It is 57% (2017 to Aug 2022) to the Land of Investing Nirvana - Freehold Income for Life!


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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Friday 24 February 2012

Why more corporations selling bonds or perpetual securities???

Just for Thinking ....

Read? Insurance, Leverage, and Peace of mind.

May be the banks are thinking that these corporations are too risky to lend them more money. The corporations have no better choice but to borrow money from the stock market through bonds or perpetual  securities by offering "attractive" interest payment to lenders in the current ultra low interest rate environment. It is damn "attractive".

Banks are not lending more money directly to these corporations. But I heard some "clever" retail investors were borrowing directly from the banks and then lent their borrowed money to these corporations by leveraging on the bank loans to buy these bonds or perpetual securities to earn the differences by taking on the risks which are deemed too high by the bankers.

The bankers are in the business of lending and they are not doing it. Are you thinking it loud?


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