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Singdollar bond issue down to a trickle amid interest rate volatility

Feb tally of S$50m so far a sharp contrast to Jan's S$2.2 billion; but bankers say longer-term bond financing still has non-rate benefits

Singapore

THE Singapore dollar bond market has almost ground to a halt as interest rate volatility continues to roil markets.

Two weeks into February there has been only one issue worth S$50 million, in contrast to last month's brisk issuance momentum carried over from 2017 when volumes reached the highest in 12 years.

In January 2018, companies sold S$2.2 billion worth of bonds, up 140.5 per cent from the same time a year ago, according to Bloomberg. There were 12 issues, three times more than the 4 deals which raised S$920 million in January 2017.

"The recent bout of interest rate and equity market volatility have indeed slowed down new bond issuances, more so in the SGD space as the USD market...

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