Comments on: JP Morgan Asia Confidence Notes

By: lioninvestor

lioninvestor — Tue, 20 Oct 2009 14:09:30 +0000

Hi David,

The high chance in my post is with reference to what happens to the principal after scenario 4 occurred.

IF scenario 4 happens, the principal will be more or less wiped out.

As to what are the chances of scenario 4 occurring, I can’t really give you any numbers now.

By: david goo

david goo — Tue, 20 Oct 2009 13:37:06 +0000

so sorry!? Somthing happens before I finished my reply, so let me continue,,: ) I happen to share Chee’s comment, so base on his comment what would your high chance prediction be. More over I can only think of the only high chance of losing my principal is putting with the Singapore pools. Plse advise thx
wmt rgds

By: david goo

david goo — Tue, 20 Oct 2009 13:23:47 +0000

Hi,

I would consider selected single premium insurance products as low risk as well. The lowest risk free product would be Singapore governement bonds.

By: chee

chee — Tue, 20 Oct 2009 02:53:18 +0000

Hi Lioninvestor ,

For JPMorgan AsiaConfidence Note-Series1, so far there is no Trigger event and the worst is already over i.e. it is not likely to have Trigger event by end of 2010.
Hence, most likely , the Scenario 2 will be applied.

rgds

Chee

By: lioninvestor

lioninvestor — Mon, 19 Oct 2009 23:24:21 +0000

Hi David,

I am referring to the case of scenario 4 (refer to page 11).

In that event, the investor will end up with only the coupon payments and very little (almost nil) of his capital.

So that is the worst case scenario for this product.

I would consider selected single premium insurance products as low risk as well. The lowest risk free product would be Singapore governement bonds.

By: david goo

david goo — Mon, 19 Oct 2009 12:19:56 +0000

Based on the formula, there is a high chance you will not get back any of your principal. What High chance are we talking about? in % :- 50% ,75% what? therefore one should not invest in them is that it? that leads me to another question…given the present financial economic climate would you say which other investments have low chances of losing the principal(other than parking in FD/saving account or bonds? would appreciate if you revert.thx

By: lioninvestor

lioninvestor — Sun, 28 Dec 2008 18:10:36 +0000

Hi Victor,

It is likely that the 50% barrier has been breached. If the 4 indices do not recover to be above the initial price on any of the valuation dates, you could be looking at a big loss in capital.

By: Victor Lim

Victor Lim — Sun, 28 Dec 2008 07:50:54 +0000

I purchased this structured deposit few months back.
With the market uncertainty next year, how can I know the risk and performance of the 4 indices.

By: lioninvestor

lioninvestor — Thu, 28 Aug 2008 06:19:30 +0000

I would rather much prefer a gold-backed currency system than the fiat system.

The printing press devalues even the cash we hold. Nothing is safe.

By: Dorai

Dorai — Thu, 28 Aug 2008 05:59:13 +0000

OCBC, UOB Preference Shares or JP Morgan Asia Confidence Notes ………or whatever it is, I rather be safe than greedy!…..watch your principal as Cash is King!
I have shun away UNIT TRUSTs and I believe that “IN GOD WE TRUST!