Archive for November, 2008

Tracking the Minibond Saga

Tuesday, November 11th, 2008

Work in Progress …

July 31, 2007
Do you really understand structured products?
Larry Haverkamp (Doc Money) analyzes Pinnacle Notes, and doesn’t encourage it.

Sep 15, 2008
What will happen to my Lehman Minibond?
There are a few possible scenarios:
1) There is no bailout and Lehman Brothers goes under
2) Lehman gets taken over by another party which assumes their Minibond Obligations
3) Lehman gets taken over by another party which does not assume their Minibond Obligations

Sep 18, 2008, The Straits Times
DBS High Notes investors at risk
Bank warns they may lose entire stake in Lehman-linked product
By Francis Chan

SOME local investors of a product linked to bankrupt investment giant Lehman Brothers have received late-night phone calls from DBS Bank warning them that their entire stake may be wiped out. The investors have their cash in a product called DBS High Notes 5 that the bank offered wealthier clients last year. It came with a promised annual return of about 5 per cent.

But Lehman’s collapse on Monday means the product will be unwound and investors may only get a portion of their investment back – or none at all.

Lehman Brothers could not be rescued in time, and thus had to declare for bankruptcy, sparking off a credit event.

Sep 16, 2008
Comments by MAS Spokesperson on Lehman Brothers

Sep 17, 2008
Comments by MAS Spokesperson on Lehman Brothers Minibond Programme

Sep 19, 2008
Minibonds Update
Many people have been asking why their Minibond capital is affected by the bankruptcy of Lehman Brothers when it is not one of the reference entities. I think a picture would explain this relationship very clearly.
The Sound of Silence – Is our PM competent?
PM Lee takes the effort to mention “clearing tables and returning food trays” during his NDP Speech, yet remains silent on effects as big as Mas Selamat escaping, and now, thousands of investors losing millions.
Putting it in another way, by the sound of (PM’s) silence (on national crises), we know we have overpaid an incompetent leader to be at the top.

(more…)

Short-term Rally

Thursday, November 6th, 2008

So Obama won a landslide victory.
Most consider it a watershed moment:
The first (half)black President of America!

I’m glad for the US Presidential Election.
It’s what spark off the short-term stock ’emotional’ rally.
I don’t expect it to continue for long.

And of course it pays to listen to your stock broker.
Sold off some shares today.
Bought them for $4.1k, made $600+ …
Essentially, I made 15% in less than a month!

The market will fall more.
It’s really a great time for a new investor!
I’m slowly buying stocks at levels I find reasonable.
Holding out for it to tank some more before I go in again.

“Be fearful when others are greedy,
and be greedy when others are fearful.”

— Warren Buffet