SGX's proposed bond framework needs demand to stand on

THE current lacklustre retail bond market suggests that the Singapore Exchange will have to do more than just create a new platform if it wants its proposed bond seasoning framework to succeed.

The challenge lies in generating stronger demand, not just from investors, but also from issuers.

The proposed framework will allow issuers to offer bonds to retail investors if that bond series had already been offered to institutional investors for a "seasoning" period of at least six months. Issuers who take this route will not have to issue a prospectus for the retail offering.