Linked Notes, structured debt (1) - Singapore

With the fall of Lehman Brothers, some of the Notes where Lehman Brothers is swap counterparty, reference entity/reference obligation etc (for e.g Lehman Minibonds, DBS High Notes, Morgan Stanley Pinnacle Notes and Merill Lynch Jubilee Notes), suffers wipe-out in value. Many Singaporean investors suffered big losses.

Found from Monetary of Singapore (MAS): "Singapore Corporate debt market review 2007".
PDF file

From the "pie chart",
Equity Linked Notes issuance (SGD denominated): 3.7B in 2007,
is 28% of SGD denominated structured debt.
That makes Structured Debt issuance (SGD denominated, 2007): about 13.21B.

Equity Linked Notes issuance (non-SGD denominated): 2.6B in 2007,
is 15% of non-SGD denominated structured debt.
That makes Structured Debt issuance (non-SGD denominated, 2007): about 17.33B

Other structured debts besides ELNs are:
CDO, credit linked notes, currency linked notes, callable notes, asset securitised notes, convertibles etc..

We can get examples of prospectus/pricing statement of structured product from Monetary of Singapore (MAS)’s Opera under "debentures".

We can learn a lot about Linked Notes from these prospectus and pricing statements.

7 traits shared by great investors

Read an article by Mark Sellers "So you want to be the next Warren Buffett ? How’s your writing ?"
Is a good read !

The article touches on competitive advantage as an investor.
It was said that reading lots of books/magazines/newspaper, getting MBA/CFA/PhD/CPA/MS etc, experience do not guarantee great success as an investor.
The article emphasizes the importance of psychology.

The articles mentioned 7 traits shared by great investors that are true sources of advantage in investment.

Trait #1
Ability to buy stocks while others are panicking and sell stocks while others are euphoric.

Trait #2
Obsessive about playing the game (investment) and wanting to win.

Trait #3
Willingness to learn from past mistakes.

Trait #4
Inherent sense of risk based on common sense.

Trait #5
Have confidence in their own conviction and stick with them, even when facing criticism.

Trait #6
Have both sides of your brain working.

Trait #7
Ability to live through volatility without changing your investment thought process.
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