finnacer

In the previous post, I mentioned about the retailers and the FD as well as the treasury bond yield. In this post, which is the most crucial part as I will talk about the relation of treasury bond yield and the Institutional investors.  As What I mentioned in the previous post, the 10 year treasury bond yield had rose since May and now at the point of 2.88% while the 10 year Malaysian Govertment Securities yield is now standing at 3.89% which rose from 3.11% on 10th of May 2013. 2nd , I would like to talk about the instrument where the Institutional can play with. Why is Goverment paper is important to the investors? This is because its almost a risk free investment as it is being guaranteed by the goverment and the only risk is the govermnt default on it. On the other hand, this instrument is only available to the sophisticated investors, which is the investor must have at least RM2 million net worth to play this game. In order to let most of the retailers understand about the i...

In the past, we were being told that REITS is a very conservative instrument and very defensive as it is giving out its earning as dividend, but is REITS that good actually? How bout the capital appreciation as well as capital protection? In this article, I would like to share some of my thoughts regarding this instrument.  To evaluate whether is it a right investment now, we will have to look at the few factors that will causes the price movement of the REITS. 1st Interest rate 2 nd Occupancy rate 3rd The demand on Reits  4th Increase in the Property Value Looking at the factors above, I believe that the 1 st and 2 nd factor is the issue that moves the demand of Reits, while the 4th factor will be the growth of economy. Looking at all the factors above, I think Interest rate is what we should concern the most for the current situation. As we know, Reits is where we invest to get return which is generated by the rental income of the Real Estate. As long as the Real Estate i...