I just received a message from my broker this morning. The message mentioned that UOB is raising a bond. The following is an abstract.
United Overseas Bank has launched and priced $750 million in non-cumulative, non-convertible perpetual capital securities. They will bear a fixed distribution rate of 4% per annum. The bonds, which will be issued in the denomination of $250,000, are intended to qualify as additional Tier 1 capital under the Basel III framework adopted by the Monetary Authority of Singapore. The bonds may be redeemed at the option of UOB on May 18, 2021, the first call date, and every five years thereafter to a rate equal to the prevailing five-year SGD Swap Offer Rate plus the initial margin of 2.035%. Distributions are payable semi-annually.
Some recent interesting articles on banks.
Leverage and risk - This one is on the use of derivatives to conceal risks. @bennysam : Maybe this provides a hint on Goldman Sachs. :-)
Do Net Interest Margins and Interest Rates Move Together?
Although these articles are on US banks, they do provide some issues to think about.
Even Goldman Sachs is raising cash by asking commoners to deposit money with them. This is previously unheard of. I can only guess what their intentions are :-)