Bond losses expose the vulnerability of Singapore's not-so-rich investors

Singapore

WHEN Elaine Tham signed an "accredited investor" form with her bank in Singapore two years ago, she took a fateful step toward losing all the money she had set aside for her children's education.

Based on her financial profile and investment priorities - her need for S$150,000 to pay university fees - a local branch of HSBC Holdings Plc had initially categorised her as a "medium risk" investor. But because the value of her property and car entitled her to "accredited" status, a category reserved for wealthy investors, Ms Tham says she was persuaded to take a riskier path. She agreed to invest S$250,000 in the bonds of a small Singapore energy-services company, Swiber Holdings Ltd, which said in August that it will not be able to repay its bondholders.