Interest Rates

• Pippinpro

  21 Oct 08, 13:08

  Hi, i got a question.. hope some kind soul can help...

  As for singapore how to know the market interest rate??

  Is it benchmarking through the Singapore Interbank Borrowing Rate (SIBOR)

  or is it the fixed deposit rate of singapore??

  ThankS!

• maxtor

  21 Oct 08, 13:20

  u meant interest rate for ? mortgage loan rate, interbank borrowing rate?

• maurizio13

  21 Oct 08, 13:28

   

  Borrowing or Savings?

   

  What purpose you using it for?

   

• Pippinpro

  21 Oct 08, 13:51

  My bad erm...

  what i mean is the required rate of return for investors..

  like on average whats the market required rate of return from investing..

  from bonds to T-bills to stocks

  thanks ^^

• maurizio13

  21 Oct 08, 13:56

   

  Government bonds or T-Bills equals risk free rate of return.

   

  Required rate of return means you have to factor in risk aka beta for that particular industry.

   

  http://en.wikipedia.org/wiki/Capital_Asset_Pricing_Model

   

   

• maxtor

  21 Oct 08, 14:40

  if you r looking for a risk free rate of return, i would imagine that SGS bonds would make a pretty good substitute.

   

  http://www.fundsupermart.com/main/sgs/SGShome.tpl

• Pippinpro

  21 Oct 08, 18:28

  thz maxtor and maurizio13..

  So normally investors see the return depending on the company profitability and stability??

  is there like a minimum yield the market investors will look for? (e.g higher than fixed deposit in banks )

   

• maxtor

  21 Oct 08, 20:27

  Originally posted by Pippinpro:

   

  is there like a minimum yield the market investors will look for? (e.g higher than fixed deposit in banks )

  i think finance theory assumes market investors to be risk averse = looking for the best return with the least risk.

  i can't give you a number to what a minimum yield might be though. i've always used the risk-free rate as a good benchmark though.