How Bonds Can Make You Money Too! 😲 What Are Bond Investment Strategies Now...

In this tutorial, you'd get a quick understanding on bonds as an asset class.
Bonds vs bond etf vs bond unit trust funds.
Bonds are important for asset allocation in your portfolio.
#assetallocation is more important to you than stock picking.
4 key steps to understand a bond, bond etf or a bond fund
1) Who issued the #bond?
There are sovereign (like Argentina bonds) and corporate bonds (like SIA Retail bond).
2) What kind of bond quality?
How is it rated on S&P.
3) How long is the bond to maturity?
If maturity is near, it is less sensitive to interest rate news.
4) Currency of the bond
Currency is a risk that must be carefully considered. International investors typically buy USD denominated bonds.
In Singapore, there is ABF SG BOND ETF which invest into investment grade bonds in SGD. ABF SG #bondetf is traded daily and liquidity is actually not too bad.
Bankers typically market high yield bond funds because they provide high dividend yields. I'd show you 2 of them to help you understand the risk better.
Sources:
www.businessto...
www.bondsuperm...
www.snideradvi...
www.nikkoam.co...
TUTORIAL ON SINGAPORE AIRLINES BOND: • SINGAPORE AIRLINES (SG...
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About Josh:
Josh holds a degree in Accounting.
In 2016, he co-founded the financial education website TheAstuteParent to provide detailed insurance plan analysis and financial planning tips to help you kickstart your journey towards financial freedom.
As a ChFC charterholder, Josh has agreed to be bound by the ChFC®️/S Code of Ethics. This includes, among others, acting in a professional manner when it comes to conducting due diligence on primary and secondary sources of investment-related data, and articulating his investment opinions based on his research and beliefs. Based on his research and analysis, he highlighted his beliefs and opinions, and illustrated the concept of time value of money, as of the time of the video. No products were advertised.
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[@joshconsultancy]

SMASH The like and we can reach a wider community together. 💪! Each video takes 6-8hrs to make and with CB ending soon, we may slow down abit. But I’d still try my best 🤜🏻

[@teokc2812]

lol why the dislikes? Dun worry i pressed the like.

[@joshconsultancy]

@Teo KC ya, it's like that. But life goes on! Many thanks, most important is more know abit better on finance with every little step =)

[@teokc2812]

@@joshconsultancy it disappeared! How does it work?

[@lijying1984]

Hi Josh could also do a video to explain more if SIA bond and if it is suitable for low risk?

[@joshconsultancy]

Hi J, i think SIA is pretty low risk since Temasek kind of said they won't let it collapse. Thats my own opinion haha disclaimer. Cya around more!

[@lijying1984]

@@joshconsultancy okay thanks

[@joeylim5386]

Hi Josh. Where could I find more the charts included in the video, such as at time stamp of 7.37 and 9.45 Thanks for sharing!

[@joshconsultancy]

Hi Joey, they are screenshots within my adviser portal in IFAST. And sure if DIY portals will have or not. Cya around more k! =)

[@daw146]

Hi Josh, thanks for the video. What are your views on MBH? Is it a good alternative to A35?

[@joshconsultancy]

Hi Dexter, haven't used it before but I took a quick glance. Either could work for investment grade bond allocation within a portfolio. Both are very long dated. A35 is sovereign/quasi sovereign focused but still both are investment grade. Rather than ETFs, I use unit trust bond funds for portfolios. Hope it answers and cya more. =)

[@summerjunes]

I am building a safe portfolio with Posb invest-saver with DCA on ABF Singapore Bond index ETF. I checked the yield is 1.99%, however it has a return of 3.17% since inception. For Bond shall I focus on the return rate instead of the dividend yield?

[@joshconsultancy]

Hi June, bond fund focus on what kind of bond. The low return is because it is very low risk bonds thats why. Focus on what it can do to your portfolio

[@NishaSubramaniyan]

Thank you Josh! Very informative. May I check generaly what % of your investment per year can go into safe investments like SSBs for cushioning?

[@joshconsultancy]

Hi Nisha, welcome to the channel. There’s no fixed %. Depends on investment goals. At this moment, Ssb has v little use coz of the rates. Cya around more ya

[@retrovox]

Hi Josh, I have 2 questions pertaining to bonds investing. Since bonds are IOU, why is there a need to go through a bidding process to purchase the bonds? Also, I notice bonds are mainly made available to HNW individuals or a person who has the financial means to transact no less than $200K or a high income earner who earns no less than $300K/annum or an accredited investor. Does it mean that a normal person who has cash but no high income cannot invest directly into bonds? Thank you.

[@joshconsultancy]

Hi Johnny, bidding? That’s only for listing. Once listed (secondary market) it’s over the counter. Normal personal can still get some, min lot size of $250k still applies. Hope it answers

[@retrovox]

@@joshconsultancy Temasek has recently launched a 50-year bond. I can't rationalise someone who would hold this bond till maturity. Someone who does that in his 30s might not even live to the day he gets back his money. Is that the reason why first time subscribers of such bonds often let go of their bonds in the stock exchange?

[@member1715]

Good sharing and well explained

[@joshconsultancy]

Thank you so much 🙂

[@sarahk4109]

Do you have a video just for ETFs?

[@joshconsultancy]

Hi Sarah, as in a compilation of bond etf and sti etf and some other listed etfs... something like tt?

[@PptyS209]

Coming back to look again, under current market condition In April 2021 now, can’t figure out which bond/fund/etf bond to select still? 😖

[@joshconsultancy]

Bond also need to diversify in duration and credit rating. If unsure buy a portfolio than bond fund pick. Cya more PM =)

[@jiti5034]

Can you get a Margin loan on Bonds you hold?

[@joshconsultancy]

Can. But prob not a good idea

[@jiti5034]

@@joshconsultancy Why is that not a good idea? what is the math behind it

[@nayocky]

Very helpful information!

[@joshconsultancy]

Glad it was helpful Nayocky!

[@prasadrao8]

I can buy Singapore govt bond iam from india as passive income for me

[@joshconsultancy]

Can. From local ATM. Very low yield though Prasad

[@prasadrao8]

Iam not understand wht had in words said