@limyuwei +100

<<Pv future net cashflow, positive = a liability, negative = a future profit>>

To add...

An insurer has both assets and liabilities

Assets = its investments in bonds, shares, money market instruments etc
Liability = its liability/commitment to its policyholders

When Liability > Assets = Contract Liability
When Liability < Assets = Contract Asset

E.g. present fair value of its investments RM100m
Present value of its commitments RM115m

Net liability = RM15m

Fair Value gain/(loss) arises from the MOVEMENT of interest rate/bond yield.

Assuming you buy your bond at Year 1
Year 1 to Year 2 - yield rose = fair value drop
Year 2 to Year 3 - yield drop = fair value go up

Key - MOVEMENT

The above is only example ar, I just want to illustrate the principle.

@Papayashot u see that MGS chart someone shared a while back

Example:
Year 1 MGS yield 4.5% <<< Allianz buy its bonds here/at this point of time
Year 2 MGS yield 3.8%
Year 3 MGS yield 2.8%
Year 4 MGS yield 3.3%

When a bond holder like Allianz do his accounts at end of Year 2, he will have FAIR VALUE GAIN.

When a bond holder like Allianz do his accounts at end of Year 3, he will have FAIR VALUE GAIN.

When a bond holder like Allianz do his accounts at end of Year 4, he will have FAIR VALUE LOSS.

Get the "feel"?

I.e. u buy a bond with 4.5% interest
When the market WANTS 3.8% yield, the 4.5% bond that u have is highly sought after.

BUT, if u buy a bond with 3.0%
And market WANTS 3.5% yield, your 3.0% bond is unwanted.

Wahahahaha sold yesterday and re-entered this morning XD

In other words, when you have a RM100,000 investment in a 2.0% bond

When market yield is 3.0%

U will take a FAIR VALUE LOSS hit of RM100,000 minus RM66,667 = RM33,333

It's a paper loss@accounting loss

If u keep holding it, every year u still get your RM2,000 interest income

@Papayashot

Accounting is always based on fair value.

Give u an illustrated example.

Let's say u invest RM100,000 in a bond
It is a perpetual bond i.e. no maturity, every year it keeps paying interest
The bond promises you coupon@interest at 2.0% p.a. i.e. RM2,000 annually
There is no risk on default

BUT, in the bond market, similar bonds are yielding 3.0%

So, if you go out there and try to sell the bond at RM100,000, no one will buy it from you. Instead, they will only buy at RM66,666.67

RM66,666.67 is calculated by taking RM2,000 ÷ 3%
RM2,000 being the interest
3.0% being the market yield

Of course in the real world there are a lot more factors and variables

But this is the principle of YIELD vs FAIR VALUE

So, market is overreacting to the loss without analysing the results details? Hmm...

Seems like market don't like this result...

Yea that's what I wanna say too.

"Rising interest rate" is also another way of expressing "drop in bond market value/price".

BNM may maintain rates low.

BUT Mr Market may not buy it i.e. they may dump MGS to effectively make bond yield rise.

My boss also took AZ

Sore at arm, at injection site
Next day a bit fever and chill

Day 3 nothing liao

https://disclosure.bursamalaysia.com/FileAccess/apbursaweb/download?id=213908&name=EA_FR_ATTACHMENTS

Okay la, respectable

If got ammo, top up!

Today morning looks like a bilis trap...

From opening shoot up to 2.78, only to finish morning session in the red.

@Kai Shien Ks how you "noticed"?

Pekebun coming soon...

Who the high push up to 2.78 then bring back to 2.73 now? Main-main ka? Hmm...

@Lanmum u wanna wake up pekebun?

Sell all your holdings now to push down the price below 2.50 lo XD

I earn 18% liao hehehe

Sell already also dunno where to park the money.

I'd keep holding.

If syndicate push up means bad news

Means after QR they dump huhuhu

@auditor

Then who is pushing the price up? Hmm...

Institutional investor come in liao?

Free condo! Free condo! No buy sure regret!!! XD

This is syndicate tempting ikan bilis to chase high! Do not be deceived by auditor! XD

Maybe dragged by Malakoff? Gas Malaysia results was decent.

Those with no holding power just sell and go away...

If MMC (low PE, decent dividend yield, profit growing) also no patience to hold, stock investing is not for you. Go play forex or Bitcoin.

Eh MMC on KYY radar

Shitttttttttttt

Auditor looking at my baby MMC? XD

Ex date climb back to cum price. Hebat PPB

@auditor

you are the best! thanks for the debrief/summary of that webcast

Pekebun Ganja muncul, TGUAN naik balik pulak.

Peliknya...

@Letsfly TAANN = "Big Peace" la

U buy this stock, you can hold in peace :D

That webinar can be watched by public?

auditor, remember to give us a debrief later. Thanks!

Morning slump

Confirm pekebun ganja will pop up today XD

Now I every night have nightmares

In the nightmares I always see a pekebun high on weed

admin can block this spamming clown or not?

that jennyloh is a troll la

Where got syndicate so free play this stock from 1.95 til now 2.52 zzzzzz

That's why I say that pekebun must be high on ganja

@yoyo +100

If really syndicate playing this stock, the crash already long happened

@Bullbursa mana ada? No see him write about MMC also

@Eurobeater hahahahahah win liao that CoSec

For office REITs, Sentral is good. Most tenants are big MNC or GLC.

Online meeting macamana nak kasi door gift? Be logical la...

Takkan nak Touch n Go reload PIN meh? XD

Huge volume today

Kenwingston is a property developer and constructor. Maybe they gonna have some joint venture with MMC? Hmmm...

Lam Kong Tang, boss of Kenwingston. Hmmm...now that you mention his name, wonder what brought him to invest so much in MMC?

Pekebun must be busy go trolling at topics of stocks that are on downtrend today, as is his pattern :P

@SincereStock why would you think next QR below expectation? I believe it will be a bang!

From now to 1.30 got about 15% profit to be made

@Superb99 I believe in locking in SOME profit

Stock don't always go up in a straight line

Take some profit off in time for correction

Then buy back again :)