"Singapore millionaire, 77, joins bondholders uniting in workouts - The Business Times 04 Oct 2016"
It is a tragedy really. While some will say that these bond investors should have known better since it is known that: high returns = high risk. At the same time, I am NOT sure that the banks that created and push these bonds have categorised them as 'high risk' to these bond investors or as 'medium' risk?
The other point to note is if MAS could have been too lenient in the PUSH to promote Singapore's bond market with many of these unrated (or some will call it as it is: Junk... bond) bonds to even allowed them to be in the market!
From the legal angle, I am sure the bond issuers and their handlers would have made sure that in the event of a default, NONE of the 'things' thrown at them by the 'left-holding the can' bond investors will stick! That they will either get a hair cut or worst, get zero return IF the bond issuers go under!
Significant to know that many of the so-called 'accredited investors' are graded that way due to their property or properties holding. Hopefully NOT too many of them will have to move out of their decades old home (GCB, landed houses, condo, etc.) if they cannot afford the haircut or the realised loss from this bond default debacle.
It seems that everyone was enjoying himself and herself at the credit orgy 9 months ago and now the nightmare of having to deal with 'bastard' kids knocks some reality into the fantasy!!
Should the government steps in NOW to bail out the bond investors? NO! This is NOT the answer! If the rich can afford to lose these much without affecting their 'just above poverty' standard of living, there is NO need to give hands out to them! However, the rich and the 'not really rich but asset rich' will have to ask: should the bankers, brokers and pushers of these 'high risk high return' instruments be more transparent? Or, alas, this is a VUCA (volatile, uncertain, complex and ambiguous) world when even the sophisticated, and MOST sophisticated, could not have predicted that oil prices will tank so much and for so long, that corrupt practices to get contracts in the O&G and Marines industries can be so pervasive and NO LONGER tolerated, etc. that led to many of these bond issuers in these related fields to stare possible default in the eyes, and some already did!
Happy BONDING bond investors to get some 'justice' from the bond issuers and handlers! Oh, some of the handlers and related parties had already spent their 'hard earned' bonuses from selling these bonds as they know too: good time never last! Make hay while the sun is out!
p/s: maybe someone need to make these banks and PUSHERs pay too?
Significant to know that many of the so-called 'accredited investors' are graded that way due to their property or properties holding. Hopefully NOT too many of them will have to move out of their decades old home (GCB, landed houses, condo, etc.) if they cannot afford the haircut or the realised loss from this bond default debacle.
It seems that everyone was enjoying himself and herself at the credit orgy 9 months ago and now the nightmare of having to deal with 'bastard' kids knocks some reality into the fantasy!!
Should the government steps in NOW to bail out the bond investors? NO! This is NOT the answer! If the rich can afford to lose these much without affecting their 'just above poverty' standard of living, there is NO need to give hands out to them! However, the rich and the 'not really rich but asset rich' will have to ask: should the bankers, brokers and pushers of these 'high risk high return' instruments be more transparent? Or, alas, this is a VUCA (volatile, uncertain, complex and ambiguous) world when even the sophisticated, and MOST sophisticated, could not have predicted that oil prices will tank so much and for so long, that corrupt practices to get contracts in the O&G and Marines industries can be so pervasive and NO LONGER tolerated, etc. that led to many of these bond issuers in these related fields to stare possible default in the eyes, and some already did!
Happy BONDING bond investors to get some 'justice' from the bond issuers and handlers! Oh, some of the handlers and related parties had already spent their 'hard earned' bonuses from selling these bonds as they know too: good time never last! Make hay while the sun is out!
p/s: maybe someone need to make these banks and PUSHERs pay too?
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