Thursday, November 4, 2010

Accuracy of the evaluated prices from Bond Pricing Agency


Every quarter, Bond Pricing Agency Malaysia will publish their report card i.e. the accuracy of their evaluated prices vis-a-vis actual traded prices for bonds. Below is the report.

Research Report - Pricing Performance 3Q 2010

Wednesday, November 3, 2010

Credit Card versus Charge Card


This is one of the most important question that a user must answer first before embarking to get a 'plastic'. The benefits are different for each type (as well as the downside) and therefore, potential users must not get confused.

If you are a transactor (definition: someone who uses it only as a medium of exchange), best to get the charge card or the credit card if need be.

If you are a revolver (definition: someone who uses it for the credit facility), best to get the credit card. Do not get the charge card.

A charge card does not need to follow the standard interest rate (as set by Bank Negara Malaysia and the Association of Banks) for any amount outstanding since it is not a credit card. If any of its users have an amount outstanding, charge card starts charging penalty fees which can be more exorbitant than credit cards. Moreover, you will be barred from making further purchases using the card.

Tuesday, November 2, 2010

Yields for the benchmark 5-years MGS trending downwards


The yield for the benchmark 5-years Malaysian Government Securities (or MGS) has been trending downwards for the last 10 months. From a yield of 3.84%, it has trended down to 3.48% (as at yesterday).

Double Click on image to enlarge.

Do not expect the yield to go down any further. I believe, yields will start to trend upwards as regulators starts to execute extra monetary measure to reduce the possibility of another round of recession.

Monday, November 1, 2010

Malaysian Bond Index Performance to date - going higher!


Below is the performance of the Malaysian bond market as tracked by the BPA Malaysia All Bond Index, BPA Malaysia Islamic All Bond Index and the BPA Malaysia Conventional All bond Index.

Double-Click on image to enlarge.

As you can see the performance of all the indexes are positive. Interestingly, Islamic sukuks or bonds generate the best return compared to conventional bonds.
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