When investors are plentiful and allocations fall short

YIELD hungry Singapore-based investors are constantly on the lookout for investment grade Singapore bonds and perpetual offerings, especially in a turbulent and a low interest rate environment. Investors are also keen on technology unicorn initial public offerings (IPOs).

When a hot fixed income or equity new issuance is underway, investors plough in funds, hoping to snag a piece of the action. When demand is greater than supply, there is inevitably a shortfall in allocation. Unmet expectations may trigger unhappiness among investors. Access to opportunities may also be perceived to favour the wealthy and connected.

Hence, finance professionals must deal fairly and objectively with all clients with regard to investment processes and other professional activities, including the allocation of bond and equity new offerings to avert adverse consequences in the long term.