Bond investing getting stressful

FIXED income or bond investors generally expect to have a quiet life. It's why the typical asset allocation recommended for retirees is that bonds should make up the majority in a portfolio and volatile equities take a much smaller portion.

Singapore dollar (SGD) bond investors are supposed to sit back and collect the coupon or interest payment typically twice a year until maturity, which could be as short as two years or as long as 10 years. Or, in the case of perpetual bonds, which have no fixed maturity date, possibly receiving coupons for the rest of their lives. Most perpetual bonds sold in Singapore, however, have a callable date, which means the issuers can redeem the bonds, if they choose to, after a certain time has passed.

But, increasingly, bond investments are getting more uncertain. Some investors find it downright stressful as more issuers get into trouble or are finding it tougher in today's challenging markets.