STI 10-year return beats SSB’s 3.21% interest, but only by a shade

AFTER years of being sidelined, fixed income products are finally getting some attention. Higher interest rates are making bonds an interesting alternative for investors seeking attractive returns.

One product, in particular, has caught the eye of retail investors here: Singapore Savings Bonds (SSBs). The latest issuance for November comes with a 10-year average interest of 3.21 per cent per annum, the highest since the product was launched in 2015.

Given the global decline in equities, should investors lighten their exposure to stocks and raise it in bonds? What position should such fixed income products have in an investor’s portfolio?