Opportunities in retail bonds

As USD 10Y Treasury yield crosses 3%, one would think that there should be some cheap retail bonds to buy. Unfortunately, there are no obvious opportunities in SGX retail bond market at the current moment.

I would not buy any of the bonds at the prices quoted. I bought some PERENNIAL S$280M4.55%N200429 (BSKZ.SI) and OXLEY MTN S$300M 5% B191105 (BJFZ) in the last couple of months, but the prices have somehow rosed.

I would be willing to buy

  • PERENNIAL S$280M4.55%N200429 (BSKZ.SI) if the Yield to Maturity is > 3.9%. The maximum price that I am willing to pay is 1.009
  • OXLEY MTN S$300M 5% B191105 (BJFZ.SI) if the Yield to Maturity is > 5%. The maximum price that I am willing to pay is 0.996

Both can be bought in SRS accounts.

I have many readers who have asked me about Hyflux. Due to the lack of visibility of the sale of Tuaspring, it it is difficult to calculate if it is a good investment.

If you have questions on these bonds, please contact me.

  • I'm a remisier with Maybank Kim Eng, and as a bonds and REITs investor myself, I guide my clients to build resilient bonds and REITs portfolios. If you like to be guided, please contact me regarding how to become my client; It's free!