Bonds still in favour amid wobbly financial markets

But investors are showing some caution amid the flight to fixed-income safety

Published Wed, Oct 15, 2014 · 09:50 PM

Singapore

COMPANIES continue to sell bonds amid wobbly financial markets as investors flee to the safety of fixed income. But bankers say investors are showing some caution.

"There will be choppiness in stockmarkets for a while but perversely... the bond market continues to draw investors though clearly they are more careful about pricing," said Clifford Lee, DBS Bank head of fixed income.

Just in the first two weeks of October, in the Singapore bond market, there were seven issues worth S$880 million, according to Bloomberg. For the entire October in 2013, eight issues raised S$550 million. This brought 2014 volumes to S$20.9 billion from 126 deals against sim…