Sweet spot for S'pore dollar bonds

Strong currency and high yields continue to drive demand

Published Wed, Aug 27, 2014 · 10:00 PM
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INVESTORS' love affair with local bonds shows no sign of letting up as they continue to bask in a sweet spot. Driven by a strong Singapore dollar (SGD) and high yields, the value of issuances in the first three weeks of this month is almost three times that for the whole of August last year.

Corporates too are reaping the benefits, with more of those in the mid-tier credit category able to price their debt lower with each successive issue as well as increase the tenure.

For this month up to Aug 25, there were nine deals worth S$1.75 billion versus seven valued at S$650 million for August 2013. For the year up to Aug 25, there were 102 issues worth S$16.65 billion, against 96 valued at S$12.42 billion same time last year, according to Bloomberg. Total 2013 bond issuances amounted to S$19.84 billion.

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