30-03-2015, 10:45 PM
some details from MAS here, more will probably only come closer to launch: http://www.mas.gov.sg/News-and-Publicati...stors.aspx
interest to be paid every 6 mths: http://www.mas.gov.sg/~/media/resource/n...0Bonds.pdf
interest to be paid every 6 mths: http://www.mas.gov.sg/~/media/resource/n...0Bonds.pdf
(30-03-2015, 09:38 PM)Musicwhiz Wrote:(30-03-2015, 09:27 PM)egghead Wrote: At $500 denomination, monthly payment, capital guaranteed, I thought this is a direct competition to bank deposits.
This sounds like an interesting product, if only to diversify an investor's portfolio away from equities.
Some questions I would like to ask:-
1) What is the coupon rate to start off with? The news only mentions that this will be tagged to the SGS.
2) What will be the step-up rate, and how often will this be applied? (e.g. once a year)?
3) How frequently will coupons be paid? Annually or semi-annually?
4) Does interest on the SSB accrue the moment you buy it, or is it just payable on a specific date? E.g. $1,000 principal at 2% with coupons paid semi-annually means $10 paid every 6 months (e.g. June 30). But if I buy it say May 31, does this mean I only get 1 month worth of interest (i.e. $1.67)?
5) What is the maximum cap which one can buy these SSB? I am hoping it will be at least $10,000. Over 10 years, at least this means one can place a total of $100,000.
Regards.