whosyourdaddy Posted September 23, 2001 Report Share Posted September 23, 2001 I am thinking of buying some bonds in thailand. With the way my stocks have been going in the west, I just wanted to diversify my portfolia a bit more and though the bongd market might be a good idea.. With the low interest rates in Canada, it really would not be worth it to invest back home. But the thai bonds seem to be paying 50% better. I was looking at the major banks as opposed to the company bonds. Anyone invest in these? Are they guarenteed by the government or god forbid the banks? thanks WYD Link to comment Share on other sites More sharing options...
Guest Posted September 23, 2001 Report Share Posted September 23, 2001 I have seen you on various boards so I will take your request at face value. Unless you wish to invest 10 million baht to get Thai residency DONT. Many many reasons, the main one is you dont know the market, for example would you join in a Thai card game for money?? You dont know the players, you dont know the rules, you dont know if you are going to be suckered. If you want to diversify fine, many other safer places to do so. Link to comment Share on other sites More sharing options...
Guest Posted September 23, 2001 Report Share Posted September 23, 2001 back in 1996, interest rates were about 14%. I know many people who invested money. they received their money back recently with the annual 14% added. guess what? ..overall, they didn't gain much if anything at all. back in 1996, the exchange rate was 25 to 1. treasury bills pay about 5%. safest thing around. guaranteed by the us government. check out www.fidelity.com. they have a bond evaluator that you can use to compare bonds, and stocks. Link to comment Share on other sites More sharing options...
gummigut Posted September 23, 2001 Report Share Posted September 23, 2001 Hey dude: Let me first say that you really should do your own due diligence. Having said that, I'll now say that I really disagree with the previous posts for a variety of reasons. If I was your financial planner I would ask "What is the timeline of your investment? What is the likelihood of pulling out the principal before maturity? Will you still be in Thailand at the end of your investment?" I very much disagree with Glen because if you will still be in Thailand then buying Thai debentures (which is what they call bonds here) would be good because they eliminate foreign exchange risk. Secondly, I would have no problems buying debentures of foreign partnered Thai banks because I don't believe the International side would default in a small market like Thailand because the bad PR would be more costly. Lastly, I don't see how you could be suckered buying debentures of an internationally partnered bank if you use a good broker. If the coupon payment is good enough for you then I'd buy it (although I'd do a little more research on the Company in question). With regards to Beenthere2k, yes US Treasuries are considered to be the safest haven for money and they set the benchmark for a security rating of "AAA" (the best rating anyone can get). However, this would not be the best investment for you if you wanted to invest in the US bond market. I would recommend taxable quality corporate bonds. I am NOT a tax lawyer, but American's have a 70K exemption from tax if they live over seas. Not sure what a canuck's rules are in US investments, but I'd bet that you wouldn't have to pay tax on the interest payments, or they wouldn't bother tracking you down as you'd be small potatoes. Thus corporates will give you a significantly higher return than treasuries with regards to bonds. You got any other questions you know where to reach me! <<burp>> Link to comment Share on other sites More sharing options...
whosyourdaddy Posted September 24, 2001 Author Report Share Posted September 24, 2001 quote: Originally posted by Glenn: I have seen you on various boards so I will take your request at face value. Unless you wish to invest 10 million baht to get Thai residency DONT. Many many reasons, the main one is you dont know the market, for example would you join in a Thai card game for money?? You dont know the players, you dont know the rules, you dont know if you are going to be suckered. If you want to diversify fine, many other safer places to do so. Thanks for your reply.. Just wondering if you have tried the thai market and have some personal experience with it? Actually I already have thai residency so dont need the 4 million bhat investment clause From what I witnessed last week, I think Thai markets will be quiet safe compared to markets back in canada or the US. Thanks for your reply Link to comment Share on other sites More sharing options...
whosyourdaddy Posted September 24, 2001 Author Report Share Posted September 24, 2001 IF you dont mind I will talk to you about this around the pool table this weekend. Link to comment Share on other sites More sharing options...
sh7691 Posted October 5, 2001 Report Share Posted October 5, 2001 Anyone invest in these? Are they guarenteed by the government or god forbid the banks? I'd like to address the question above. Take a look at the prospectus of each... If they are issued by the Govt then they are guaranteed by the Govt and if they are issued by a bank then ALSO take a look at the prospectus.......simple really mate.. Have fun in the bond markets as I'm sure you will if you are resorting to a 'Sanuk' board for advice!!!!!!!! hehehehehhe s Link to comment Share on other sites More sharing options...
Crash999 Posted October 14, 2001 Report Share Posted October 14, 2001 quote: Originally posted by gummigut: I am NOT a tax lawyer, but American's have a 70K exemption from tax if they live over seas. The (this tax year) US$78k exemption is for one's income and does not include capital gains tax. Cheers! Link to comment Share on other sites More sharing options...
whosyourdaddy Posted October 19, 2001 Author Report Share Posted October 19, 2001 quote: Originally posted by SamSaLeung: if they are issued by a bank then ALSO take a look at the prospectus.......simple really mate.. Have fun in the bond markets as I'm sure you will if you are resorting to a 'Sanuk' board for advice!!!!!!!! hehehehehhe s Would be fun to read a prosectus, if my bank had such a thing. all they have is a A4 piece of paper with a3 graphs on it.. no other info.. so hence I am asking other expats that have gone throught the experience before and have gotten some great advice offline over a few beers. Link to comment Share on other sites More sharing options...
Guest Posted October 19, 2001 Report Share Posted October 19, 2001 Originally posted by whosyourdaddy: [QB]I am thinking of buying some bonds in thailand. With the way my stocks have been going in the west, I just wanted to diversify my portfolia a bit more and though the bongd market might be a good idea.. With the low interest rates in Canada, it really would not be worth it to invest back home. Think of it this way if you want to gamble try VEGAS you get kissed and the drinks are free. Foreign equity let alone bond markets can be a minefield of misadventure. There is little transparency and or accounting standards. Generally if things get worse in the states they will be magnified in third world markets as money will flow from the periphery back to the center. No this does not sound like a good idea to me. If you got the urge to buy Thai bonds my suggestion is go back to bed until the feeling passes. This might save you a lot of headaches later. Link to comment Share on other sites More sharing options...
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