Saturday, 7 August 2010

Invest in bonds for retail investors?

Read? SGX launches initiatives to enhance listing, trading of fixed income products

Weekly SGS 15-Year Bond Yield from 2005 - 2010 : 2.77% - 3.57% (range is only 0.8%) and Corporate bonds A rated can be 2% higher than SGS.

Fixed Income Strategy

By spreading out the market risk using a portfolio of SGS, Corporate bonds A rated and Dividend Yielding stocks (at least 8%), it is possible to generate at least 4% returns. 

5 comments:

  1. Hi CW, but how can one buy SGS or corporate bond in the market when the minimum sum is 4250K?

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  2. SGX has also appointed Ms Tng Kwee Lian, formerly from UOB Asset Management, as Senior Vice President and Head of Fixed Income to drive the promotion of bond trading to high net worth and individual investors.
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    I think SGX will change the current $100K per lot to $XXK per lot. Let us wait and see

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  3. SGS bonds can be bought/sold at Fundsupermart (secondary market) in lots of 1000 units.

    ReplyDelete
  4. why pay them sales charges and pay the spread too?

    ReplyDelete