I cannot believe how many phone calls I have got in the past 2 days about savings plans. About 3 or 4 from various insurance companies and banks, telling me all about their wonderful savings deals and probably hoping deep down inside that I have not read anything about the new Singapore Savings Bonds.

At the same time we have the bond market melting down in other parts of the world.

Bond Traders Put on Alert Everywhere by $456 Billion Market Rout


Yet Singapore is safe because our rates have been steadily going up for the past 6 months as German bunds traded negative and it does serve them right now that there is a correction.

Today ! More on the retail front !!

Frasers Centrepoint Unit Offers Up to S$200m 7-Yr 3.65% Bonds

fraser 7y bond

Details on SGX :

Looks like they cannot wait for the retail bond rulings for they potentially qualify for the “exempt” issuer list i.e. they would be able to launch retail bonds without seasoning the bonds in the OTC market for 6 months.

This is a standalone issue and will not be off its MTN programme which issues under FCL Treasury Pte Ltd.

7Y SGS (govt bonds) are trading at 2.21% at the moment. 7Y interest rate swaps are 2.45% and the 4 year high in 7Y rates occurred last week at 2.5%. Thus we can say the bond is pricing at the high end of the rate spectrum, giving us a credit spread of 1.2%, which is about 0.5% tighter than the 7 year FCL paper issued last year (when interest rates were lower) at a coupon of 3.95%.

Table of comparison

Not exactly good value if we compare to the spreads that they pay in the OTC market but then this is a retail bond afterall with a denomination of $1,000 and we have very little to choose from at the moment.

List of retail offerings on the SGX.

retail bonds*note that DBS and OCBC perps are subject to call anytime which makes those yield numbers void.

It is really the consumer’s choice as far as I am concerned.