SINGAPORE BOND MARKET : An Idea For Transport and Infrastructure Bonds

In a bid to improve the public transport system, the Government will continue to subsidise and invest resources in it, said Prime Minister Lee Hsien Loong. http://transport.asiaone.com/news/general/story/parliament-significant-resources-needed-world-class-public-transport-system-pm#sthash.Q1aYEbwX.dpuf

I am not following the matter as closely as some other people with major peeves with the train system. I prefer the bus actually, because I suffer from slight claustrophobia.

Yet this whole infrastructure nationalisation business is intriguing to the least, because I recall the hype over infrastructure bonds over a year back and the SGX seeking new offerings then. http://www.bloomberg.com/news/2012-11-15/singapore-exchange-seeks-infrastructure-bonds-as-ipos-slump.html

Putting this together for the political incumbents in Singapore, what better way to foster national unity than to unite via national ownership ? Ownership = less complaints and more compliance ?

I do not know how many readers would remember Singtel ? But, I for one, would have fond memories of the government when I cashed out, and even more so for those New Singapore Shares that paid off handsomely although I will not speculate on its effect on the 2001 General Elections results. http://www.mof.gov.sg/ers/nss_ovw.htm

I am a political apatheist through nurture but I see an opportunity for Singaporeans to benefit through retail infrastructure bonds be it through LTA or a new SPV.

To ensure an equitable distribution perhaps by means of a rights issue or option to purchase which can be resold for folks who do not want to take it up ? And hopefully not the usual allocation by dwelling type because I am unemployed.

I have had enough of the CPF and/or Temasek debate/accusations in the mainstream/social media. Here is a chance to regain some goodwill ?

We already lost our chance at inflation linked retail bonds 2 years ago … (which is not such a bad thing, since they started counting internet prices into our CPI – please buy your vitamins on line !!)

Surely this cannot be a bad thing ?

Some secondary levels.
HDB 5Y 2.23%
HDB 10Y 3.25%
LTA 6Y 2.25%
LTA 9Y 2.85%
PUB 13.5Y 3.35%

Afterword :
Bringing the latest news in bonds and providing market information is not easy and Tradehaven strives hard to accomplish that for our readers.
Tradehaven’s secondary agenda is  also an attempt to be the voice for the ordinary Singaporean investor, articulating general market views and needs.
If you like our articles and stories, do contribute to our site to keep it going.
The button is located on the left side of our home page.