Maybe you have yet to understand ORI (Obligasi Negara Ritel) and SBR (Savings Bond Ritel). Both of them are types of Bonds in the form of Government Securities or SBN.
However, people often think that the two are the same. In fact, when viewed from various perspectives, ORI (Obligasi Negara Ritel) and SBR (Savings Bond Ritel) are quite different.
Therefore, you need to know the insight or information related to the discussion of types of Bonds and what distinguishes ORI and SBR.
7 Differences ORI and SBR
You can understand State Securities in every detail through the things that distinguishes ORI and SBR. In this discussion, discover what are the differences between ORI (Obligasi Negara Ritel) and SBR which offer various benefits to investors.
Some of the differences between ORI (Obligasi Negara Ritel) and SBR (Savings Bond Ritel) are:
- Coupon
You can tell the difference between ORI (Obligasi Negara Ritel) and SBR (Savings Bond Ritel) based on the coupons available. The amount of the coupon or interest that will be distributed to investors are different.
In ORI, the Bonds coupon is using a fixed rate. So the calculation will refer to the interest that has been set at the beginning until maturity. This interest rate will not change at all.
Meanwhile, in SBR, you can get a Floating with Floor coupon. The coupon value will be determined according to the applicable benchmark interest rate. This reverse repo rate will continue to change every 3 months.
Floating with Floor is a floating coupon with a minimum limit. The coupon value that investors will get can increase from the initial value. However, the coupon value can also decrease but not below the minimum limit. The amount of the SBR coupon will be adjusted to the changes in the interest rate of Bank Indonesia or the 7 Day Reverse Repo Rate (7DRRR) which is used as a reference.
- Coupon Payment Method
It's not just the coupon value that is different. You can also find different coupon payment method between ORI (Obligasi Negara Ritel) and SBR (Savings Bond Ritel). This is caused by different deadlines for each State Securities.
In ORI (Obligasi Negara Ritel), you gain coupon payments on the 15th of each month. Meanwhile, if you choose SBR investment, payments are made on the 10th of every month. If the dates fall on banking holiday, then you can receive payments the next day during business hours.
- Market
Another difference is from the point of view of market valuation. The ORI and SBR offer period will last more than 1 month on the Primary Market. This offering takes place through the Bond selling agent.
After this offering process, SBR cannot be directly offered to other investors through the Secondary Market, as SBR is not tradable anymore.
Whereas in the ORI Bond type, you can trade freely in the Secondary Market. So that later investors can make buying and selling transactions with other investors in the Secondary Market before maturity. You can do this when you need emergency funds or want to earn capital gains when prices go up.
- Different Issuance Series
Next, the difference is in the issuance series. In the case of ORI, it was first issued by the government in 2006. Currently, the series has reached ORI020.
Meanwhile, the SBR series was issued by the government in 2014. The investment was aimed to cover the APBN deficit. Until now, the SBR issued by the government has reached SBR010.
- Investment Period
The next difference can be seen from the investment period of Government Securities ownership. Obligasi Ritel Indonesia (ORI) matures after 3 years of the transaction.
However, if you choose the SBR type of investment, it matures in 2 years after the transaction is made. This difference of 1 year is quite lengthy. However, it’s not something to worry about as every investment depends on the investment goals of each investor.
- Yield
The purpose of investing for most people, of course, is to gain return. However, in terms of return you can tell the difference between ORI and SBR.
If you invest in ORI, you can earn potential capital gains. By selling securities at a higher price than when you made a purchase transaction.
You should still keep in mind that, ORI (Obligasi Negara Ritel) is not always attractive in the eyes of other investors. So, you can also get a lower price than when you bought it.
To avoid this, waiting for the maturity can also be the right choice.
Bond price dynamics do not apply to SBR. There is no capital gain in SBR securities because the principal value can only be returned when it matures.
Take a Role in Bond Investment with DBS Treasures
Knowing the various differences between the Bonds of ORI (Obligasi Negara Ritel) and SBR (Saving Bond Ritel), certainly provides a lot of knowledge. Does that make you want to be an investor in one of these government securities?
If yes, then you can simply rely on DBS Treasures who will provide you with seamless investment facilities, including the wealth of advantages.
To find out in detail what benefits you can gain, read through below:
- Published by the Government
Making investments safely and guaranteed by Law, will certainly make you feel comfortable. Because the Government Bonds in DBS Treasures are legal and issued directly by the government.
- A Wealth of Options
Another advantage that you can gain when choosing DBS Treasures as an investment partner is that you can choose the investment period according to your preferences. In addition, at DBS Treasures there is also a choice of currencies ranging from IDR, USD, to EUR.
- Gain Regular Coupons for Payment
With DBS Treasures, you can earn regular cash flow in the form of coupons. The periodic payment system during the investment period is made by the bond issuer.
- Potential to Earn Capital Gain
If you buy certain Bond products from DBS Treasures, you can easily sell them. Anytime before maturity, there is even the potential to benefit from rising Bond prices.
- Competitive Coupon
DBS Treasures not only provides facilities related to easy investment process. But it will also give competitive coupon rates. Of course with a value above the average Fixed Deposit interest rate.
- No Additional Fee
There are no additional fees borne by the Customer. Only in the form of a spread or the difference between the selling price and the purchase price (bid offer) that has been agreed at the beginning.
- 24/7 Transaction
The decision to buy Bond products may come at any time. To overcome the difficulty of access outside of business hours, DBS Treasures provides 24/7transaction convenience. You can do this process through the digibank by DBS Application, which is a digital innovation for end-to-end investment.
Some of the above benefits can be gained when you rely on DBS Treasures as your wealth management partner. Wait no more to register yourself with DBS Treasures, it's time start choosing the type of bonds on the digibank by DBS Application with ease confidently to make the most of the many advantages above.
