Sell your iBonds on the Day they List!

20 June, 2016

A Hong Kong brokerage firm failed to place some of the orders for iBonds last week for their customers. They have planned to compensate the customers as soon as the bonds are listed on Tuesday (21 June). According to Kenny Wen, a strategist at SHKF Wealth Management, the brokerage firm’s action on Tuesday can drive up the price of the bond and partly offset the low yield of this batch. Click HERE for more details about the operational failure.

In our previous blog on iBonds, we argued that popularity of iBonds may just be herd mentality of HK people rather an attractive investment opportunity. If on Tuesday the iBond trades at $105 (as the market expects), investors are suggested to sell the bonds as the profit per bond is $5 in just one day. Each lot has hundred bonds so the profit on the entire lot is $500. Given that most of the subscribers are allocated with 2 lots, the $20,000 investment brings a return of 5%, which may be the most attractive return this iBond is going to yield. This year, the projected yield is just over 2% (inflation rate in HK).

 

The average Monexo lender however has earned 12.5% over the last year, making it a very attractive investment in comparison with this iBond!

 

Monexo is the first peer to peer lending platform in HK, which is another investment avenue offering average return of 12.5% and maximum 25% to individual lenders. You can read more about Monexo and peer to peer lending in our guide HERE.

Make the smart investment choice and get on board Monexo today!