Singapore Exchange (SGX)

[tanjm]

Offering retail bonds as long as you satisfy certain set of conditions or had listed your 200k/pop bond 6months earlier? What the wise man does in the beginning, the fool does in the end?

SGX provides retail investors greater access to bonds
Singapore Exchange (SGX) is increasing the range of bonds available to retail investors with the introduction of the bond seasoning framework effective today.

The framework will enable retail investors to buy wholesale bonds initially offered to institutions and accredited investors, in denominations as small as S$1,000 six months after the bonds are listed on SGX.  These bonds will be offered by issuers which meet minimum criteria relating to their size, track record and listing history. SGX currently lists 1,900 wholesale bonds which are only available in large denominations of at least S$200,000, and/or offered to institutions or accredited investors. 

http://www.sgx.com/wps/wcm/connect/sgx_e...s_to_bonds

Actually, I think a better option is to persuade an ETF issuer to package SGD denominated Corporate bonds into a ETF.

Even better is to have a particular style of ETF called a "Target Maturity Bond Fund". i.e. you buy the universe of corp bonds maturing in, say, 2020. There is no further trading activity in the fund (no rebalancing). You just hold till maturity and then distribute the redemption proceeds to ETF holders. Repeat, as many times as necessary for each target maturity.

This would be ideal for a retirement portfolio.
1. No price risk once you buy unless you want to trade the ETF. Just hold till maturity where necessary. Certainly no price risk from rebalancing.
2. Instant diversification at the price of the ETF fees. No need to worry about specific defaults.
3. Immediate access to the universe of corporate bonds. No need to wait for Seasoning or whatever.
4. Single market. No spread between "retail" and "institutional".

I tried to write in to MAS to offer this suggestion, but was stymied by the feedback form. So I dropped it :-(.