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Old 26-03-2015, 02:31 PM   #1
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Govt to offer Singapore Savings Bonds for local investors

Govt to offer Singapore Savings Bonds for local investors
26 Mar 2015
12:33 PM

http://www.businesstimes.com.sg/gove...ocal-investors

THE government will introduce the new Singapore Savings Bonds (SSB), a type of Singapore Government Securities (SGS) for local individual investors, announced Josephine Teo, Senior Minister of State for Finance and Transport, at the annual conference of the Investment Management Association of Singapore (IMAS) on Thursday.

Like SGS, the Singapore Savings Bonds are safe investments, principal-guaranteed by the government, Mrs Teo said. Holders of the SSB can also get their money back in any given month, with no penalty, and can earn interest that is linked to long-term SGS rates. Also, unlike bonds that pay the same coupons each year, the SSB pays coupons that increase over time.

The government and the Monetary Authority of Singapore (MAS) are still working on the details of the SSB programme, and will release more information later.

To improve the availability of corporate bonds to Singapore retail investors, MAS and the Singapore Exchange (SGX) will also ease the financial and administrative costs for issuers seeking to tap the retail market, Mrs Teo said.

Two new frameworks as well as a tax deduction have been proposed, and MAS and SGX are targeting to implement the proposals in the second quarter of 2015.

"We hope that corporate issuers with strong financials will utilise the new frameworks and tax concession to issue retail bonds, which will enhance the investment choices for Singaporean investors," Mrs Teo said.
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Old 26-03-2015, 03:03 PM   #2
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this is good stuff man

TAKE MY MONEY~!!!!!!
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Old 26-03-2015, 03:15 PM   #3
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Good ar! buy this bond liao!
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Old 26-03-2015, 03:29 PM   #4
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Got to see what the offer. Fun say so fast
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Old 26-03-2015, 03:35 PM   #5
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Got to see what the offer. Fun say so fast
for me safe is the most important factor, at least can park some of my money there. hahaha
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Old 26-03-2015, 03:50 PM   #6
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at least better than cpf, in terms of liquidity
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Old 26-03-2015, 04:17 PM   #7
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Wondering what's the catch...
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Old 26-03-2015, 04:24 PM   #8
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take my money $$$$$$$$$
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Old 26-03-2015, 04:39 PM   #9
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SINGAPORE: The Government and Monetary Authority of Singapore (MAS) are planning to introduce a new type of bonds to help individual investors get a better return on their savings, Senior Minister of State for Finance Josephine Teo said on Thursday (Mar 26).

Speaking at the annual conference of the Investment Management Association of Singapore (IMAS), Ms Teo said the planned Singapore Savings Bonds will be safe investments with principal guaranteed by the Government.

These bonds will have two features to make them more attractive for individual investors: The ability to get his or her money back in any given month with no penalty, and interest rates that are linked to long-term Singapore Government Securities rates.

Unlike bonds that pay the same coupon each year, the Singapore Savings Bonds will pay coupons that “step-up” or increase over time, providing investors with a higher return the longer they hold the bonds, she added.

"In short, the Singapore Savings Bonds will offer the higher returns of a long-term bond and give what investors call a term premium, while retaining the flexibility of a shorter-term deposit, and the safety of an instrument guaranteed by the Government," she said.

Ms Teo said the Government and MAS are still working on the details and will release more information later.
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Old 26-03-2015, 04:39 PM   #10
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not sure is this the bond that temasek is planning to sell to individual investor in singapore?
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Old 26-03-2015, 05:16 PM   #11
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I'm positive about this one. Take my money too. I am certain it will be better than fixed deposit rate. Thats why banks have been aggressively upping the ante on FD. They know they have a competition coming up.
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Old 26-03-2015, 05:18 PM   #12
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2 years back i sold off all my bonds
Genting 5.125%
CMA 3.8%
CMT 3%

Had been pure equities for 2 years plus le, been itching like made to buy bonds again

With rates going up, bonds are finally feeling more attractive again!
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Old 26-03-2015, 06:32 PM   #13
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i think its 2.5% 10 year?
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Old 26-03-2015, 08:14 PM   #14
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huh? ability to get back money without penalty?
means no capital loss?

wa.. like that i will leverage max max
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Old 26-03-2015, 08:15 PM   #15
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Singapore Savings Bonds

These bonds will have two features to make them more attractive for individual investors: The ability to get his or her money back in any given month with no penalty, and interest rates that are linked to long-term Singapore Government Securities rates.

Unlike bonds that pay the same coupon each year, the Singapore Savings Bonds will pay coupons that “step-up” or increase over time, providing investors with a higher return the longer they hold the bonds, she added.

"In short, the Singapore Savings Bonds will offer the higher returns of a long-term bond and give what investors call a term premium, while retaining the flexibility of a shorter-term deposit, and the safety of an instrument guaranteed by the Government," she said.
- New savings bonds for individual investors to be introduced

I have been in favour of some kind of government-issued bond that is easily accessible to citizens for short-to-medium-term savings needs, like the US's I-bonds or EE-bonds. But this out-of-the-blue, best-of-both-worlds proposal, both flexibility and higher than market interest rates, sounds more like sorcery.

I am extremely interested in the details to come.
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