I first made my ill-fated investment in Hyflux’s perps a decade back in 2011.
Back then and now, 6% is very enticing. Too good to be true even. And how true that turned out to be in hindsight.
Based on my records, I collected $2.1k in interest/dividends until Hyflux halts them in 2018. With its demise after 3 years of wrangling in the courts, I can finally throw in the towels and declare a net loss of $2.9k not counting opportunity cost of my initial $5k investment.
I pitied the retirees who lost way more than me in this journey. Back in 2011, Hyflux was a media darling who can seemingly do no wrong. Rags to riches story for its CEO Olivia Lum. We should have been more skeptical of the hype and hyperbole. Why would a well-run company pay borrowing costs of 6% unless it was desperate? The warning signs were there all along but we were too greedy and blind to pay attention.
Consider this a lesson learnt. I am fortunate to not have to pay too high a price. Can’t say the same for others.