Singapore central bank to ease corporate bond buys for retail investors

[CityFarmer]

More option for retail investor. Let's see the safeguards installed are "safe" enough...

Singapore central bank to ease corporate bond buys for retail investors

The Monetary Authority of Singapore (MAS) is looking at ways to give retail investors greater access to corporate bonds in an effort to widen their investment choices, The Straits Times reported.

MAS Managing Director Ravi Menon said on Thursday that low interest rates as well as increased affluence and sophistication have spurred investors to seek better returns from financial investments.

The MAS plans to review how retail access to fixed-income products can be improved, which would involve making it easier for issuers to offer bonds to retail investors, while maintaining sufficient safeguards.
http://www.theedgesingapore.com/the-dail...stors.html

[greengiraffe]

When retailers get into the act, the end is probably near...

More option for retail investor. Let's see the safeguards installed is "safe" enough...

Singapore central bank to ease corporate bond buys for retail investors

The Monetary Authority of Singapore (MAS) is looking at ways to give retail investors greater access to corporate bonds in an effort to widen their investment choices, The Straits Times reported.

MAS Managing Director Ravi Menon said on Thursday that low interest rates as well as increased affluence and sophistication have spurred investors to seek better returns from financial investments.

The MAS plans to review how retail access to fixed-income products can be improved, which would involve making it easier for issuers to offer bonds to retail investors, while maintaining sufficient safeguards.
http://www.theedgesingapore.com/the-dail...stors.html

[tanjm]

When retailers get into the act, the end is probably near...

More option for retail investor. Let's see the safeguards installed is "safe" enough...

Singapore central bank to ease corporate bond buys for retail investors

The Monetary Authority of Singapore (MAS) is looking at ways to give retail investors greater access to corporate bonds in an effort to widen their investment choices, The Straits Times reported.

MAS Managing Director Ravi Menon said on Thursday that low interest rates as well as increased affluence and sophistication have spurred investors to seek better returns from financial investments.

The MAS plans to review how retail access to fixed-income products can be improved, which would involve making it easier for issuers to offer bonds to retail investors, while maintaining sufficient safeguards.
http://www.theedgesingapore.com/the-dail...stors.html

I don't know what you mean by that statement, but I, for one, would cheer. It is true that specifically at this time we should tread with caution in he fixed income market, but in General, Singaporeans have been lacking a viable alternative asset class other than equities, and property. So it should be good for the long term for the investing public.

[Antifragility]

Absolutely correct. It is all about passing the risk to the lowest common denominator as a 'hedge'.

When retailers get into the act, the end is probably near...

More option for retail investor. Let's see the safeguards installed is "safe" enough...

Singapore central bank to ease corporate bond buys for retail investors

The Monetary Authority of Singapore (MAS) is looking at ways to give retail investors greater access to corporate bonds in an effort to widen their investment choices, The Straits Times reported.

MAS Managing Director Ravi Menon said on Thursday that low interest rates as well as increased affluence and sophistication have spurred investors to seek better returns from financial investments.

The MAS plans to review how retail access to fixed-income products can be improved, which would involve making it easier for issuers to offer bonds to retail investors, while maintaining sufficient safeguards.
http://www.theedgesingapore.com/the-dail...stors.html

[Gaudente]

I can't see why bonds can't be quoted and traded on SGX like stocks are , and with affordable lots (who's the loony willing to dump 250,000 SGD on a single issuer ?) ... oh , wait , I can see it too well , it would ruin the fat salaries of finance parasites...

[greengiraffe]

yeah should eliminate the fat cats given that they are proud dinos still thinking they are like kings.

Anyway, still favouring the rich... really dunno why it took so long for them to open it up. Frankly will help boost SGX revenue base as well.

GG

I can't see why bonds can't be quoted and traded on SGX like stocks are , and with affordable lots (who's the loony willing to dump 250,000 SGD on a single issuer ?) ... oh , wait , I can see it too well , it would ruin the fat salaries of finance parasites...

[tanjm]

I can't see why bonds can't be quoted and traded on SGX like stocks are , and with affordable lots (who's the loony willing to dump 250,000 SGD on a single issuer ?) ... oh , wait , I can see it too well , it would ruin the fat salaries of finance parasites...

It's not as simple as you might think.

It costs money and time to bring a bond issue to retail (prospectus, legal and IB fees etc). The 250k limit is for investors who eschew such protection. Given that it is so ridiculously easy for a company to issue bonds to accredited investors and have them snapped up in practically an afternoon, you can see why companies don't bother with a retail tranche.

In fact, your "fat cats" in the form of investment bankers would make more money from a retail offering in fees and underwriting.

[greengiraffe]

I can't see why bonds can't be quoted and traded on SGX like stocks are , and with affordable lots (who's the loony willing to dump 250,000 SGD on a single issuer ?) ... oh , wait , I can see it too well , it would ruin the fat salaries of finance parasites...

It's not as simple as you might think.

It costs money and time to bring a bond issue to retail (prospectus, legal and IB fees etc). The 250k limit is for investors who eschew such protection. Given that it is so ridiculously easy for a company to issue bonds to accredited investors and have them snapped up in practically an afternoon, you can see why companies don't bother with a retail tranche.

In fact, your "fat cats" in the form of investment bankers would make more money from a retail offering in fees and underwriting.

too much interests to favour "fat cats". Just do it like IPO, don't see a difference really. Why rush when rush will pose heighten risks...

BTW, DBS Bank is the leading originator of S$ Bonds in Singapore...

[tanjm]

Like I said. Currently it is so easy to issue bonds to accredited investors, so why bother with retail. It's so hot they can sell out on the same day by simple word of mouth.

There's too much money chasing for these bonds.

Your "fat cats" would make more money from a retail offering.

[Fish Head]

This is surely a policy change that good for retail investors in long run. Is the bond market more risky than share market right now is more a personal opinion. Like any other investments you have to do your own due diligence before paying money. Nobody is responsible for your decision.