Lowdown on the new savings bonds

RETAIL investors might not realise this yet, but they will have to rethink their asset-allocation strategy soon.

The Singapore Savings Bonds programme to be launched in the second half of the year will allow individuals to buy a coupon-paying, risk-free bond. This can be more attractive than fixed-deposit products in banks or the guaranteed returns of annuity or endowment products offered by insurance companies.

In an uncertain-rate environment, the flexibility for individuals to get back their principal with no penalty is the biggest advantage of the scheme.