Saturday, April 16, 2011

Redemption of DBS 6% NCPS

As I flipped through Friday's TODAY newspaper, there was this announcement of the redemption of DBS Bank 6% Non-Cumulative Preference Shares.

I have been holding these shares since 2008, at the height of the Singapore stock market.  Subsequently, I saw its descend from S$110 to below S$100, and now back up a bit to ~S$102.  This has been my largest loss-making counter, if the dividends are not counted.  According to the share's prospectus, the dividend rate for this preference share will go down from 6% pa to 2.23% + 3 mth SIBOR after May 2011.  At the current low interest environment, with SIBOR at 0.44%, and bank savings interest at 0.1%, the 2% + interest is still not too bad.  But now even that is not possible.

You can check out more details here.

Good luck to your investments.

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