Silver Bonds - yea or nay?

[PLamHK]

I guess I'm not the only one here eligible (need to be age 60+ within 2025 and a HK resident)...

I bought the last two issues, with last year's offering 5% guaranteed coupon for the 3-year tenor. This year's is 4%; I guess the maximum allocation will end up being about $250,000 as it has in the last two years.

As the stable guaranteed income part of a portfolio it seems likely significantly better than HK$ bank deposits are likely to get over that term.

What say you?

https://www.news.gov.hk/eng/2024/09/...50126_069.html

[RobRoy]

Go for it! The HK Gov won't go bust in 3 years, so it's virtually risk free 4% yield with the kicker that you are protected if inflation spikes the coupon goes up, so its worth more than a regular 4% bond.

[Cheeky Kiwi]

you must have missed the gov memo that state the coffers will be empty in 2 years if expenditures continue at current rate
ask shri about it

[shri]

Our mainland bros will rescue us. Ask Gentle George about it ...

Having said that there are lots of better options if you go looking. Nothing that sexy about Asian muni bonds...

[RobRoy]

But Coldplay is coming to town now, surely that means everything is fine? Ask hongkongmusic about it..