Corporate bonds update

by

Bond prices have been battered in 2022 because of the rapid rise of interest rates. The bonds most affected are those with long tenor (further maturity) dates.

The main advantage of corporate bonds over unit trust bonds is that most corporate bonds have a maturity date or a call redemption date. It provides assurance for the investor that even if the price of bond drops, it will eventually return to par at the end of its tenor. Long term bond investors caught by the rise of interest rates should just ride it out, as the market eventually will return to mean, or the bonds gets redeemed, whichever comes earlier.

Here are some SGD corporate bond prices that shows the current color of the market. All these bonds can be supercharged (marginable). Note that prices are with commission already included.

Local straight bonds

  • HDB 2.32% 2028 – Price 94.4 – Yield 3.48%
  • BOC Aviation 3.93% 2025 – Price 100.45 – Yield 3.75%
  • Olam 4% 2026 – Price 95 – Yield 5.8%
  • HPL 3.75% 2028 – Price 91.3 – Yield 5.56%

Local perps

  • HPL 4.4% perp call 2024 – Price 97.3 – Yield 5.81%
  • Aims Apac Reit 5.65% perp call  2025 – Price 101.1 – Yield 5.22%
  • Aims Apac Reit 5.375% perp call  2026 – Price 99.05 – Yield 5.65%
  • Mapletree Ind Trust 3.15% perp call 2026 – Price 92.8 – Yield 5.37%
  • Mapletree Log Trust 3.725% perp call 2026 – Price 94.3 – Yield 5.29%
  • Olam 5.375% perp call 2026 – Price 94.6 – Yield 7%
  • Kep Infra 4.75% perp call 2029 – Price 95.8 – Yield 5.51%
  • Kep Infra 4.3% perp call 2031 – Price 91.3 – Yield 5.58%

Foreign bonds

  • Deutsche Bank 5% 2026 – Price 99.8 – Yield 5.08%
  • Standard Chartered 5.375% perp call 2024- Price 99 – Yield 5.8%
  • Barclays 8.3% perp call 2027-  Price 99.6 – Yield 8.48%
  • I'm a remisier with Maybank Securities, 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 open a trading account to become my client; It's free!