First SINGA (SGS Infrastructure) bond

[reddevil0728]

The SGS bond interest rate tooooooooooooo low

It’s Low for a reason what

 

[lzydata]

Is the interest rate fixed?
So must have holding power for at least twenty yrs then worth buying?

It will be fixed after the auction.

 

[sgbird]

It’s Low for a reason what

Because of flooding cheap money.....

 

[BBCWatcher]

Meaning can only cash out in 2051?

If u can’t find a buyer

Difficult to find?

Not difficult. You can approach any of the three major banks (DBS, UOB, OCBC), and they'll make offers based on the then current interest rate environment. You might not like their offers at a particular moment in time, but Singapore Government Securities like this one are not particularly difficult to sell. It's not like you have to hire a real estate agent and wait a few months.

If you have high confidence that market interest rates are going to decline fairly substantially (or more) within your tolerable holding period then you could buy this bond with the expectation of selling it on the secondary market before maturity. (When interest rates fall bond prices go up, and vice versa.)

 

[ocs_woodlands]

might as well just repay housing withdrawals from cpf. straight forward and 2.5%. simple

 

[~sabaisabai~]

less than 2% for 30 years?? what is the point of buying this?

yes, and i cannot imagine kena locked 30years for only 2%....

 

[reddevil0728]

yes, and i cannot imagine kena locked 30years for only 2%....

That’s why depends on profile ma

 

[BBCWatcher]

The MAS will have absolutely no trouble floating these 30 year bonds at about 1.9% interest. If anything the government's timing is lucky.

 

[gld998]

1.9%?! 30yrs later I dunno I alive or not...

 

[reddevil0728]

1.9%?! 30yrs later I dunno I alive or not...

that’s why not for everyone ma

 

[luohongxian]

that’s why not for everyone ma

one can pass down to next gen if got kid.

 

[homedriver]

I though can sell through SGX like share?

 

[reddevil0728]

I though can sell through SGX like share?

if got people buy sure

 

[kumokumo]

Put in CPF better.

 

[katana71]

Put in CPF better.

yes indeed

 

[lzydata]

Result out:

Bid-to-cover ratio: 1.58
Cut-off yield: 1.95% pa
Coupon set at 1.875% pa

https://www.mas.gov.sg/bonds-and-bi...nds?issue_code=NA21200W&issue_date=2021-10-01