facebookRealised Singapore doesn't have enforced credit rating system like Moodys or S&P - probably led to the Hyflux nonsense do you think? Like less than 50% are rated !!? - Seedly

Anonymous

18 Apr 2019

General Investing

Realised Singapore doesn't have enforced credit rating system like Moodys or S&P - probably led to the Hyflux nonsense do you think? Like less than 50% are rated !!?

How can we protect ourselves against this...I don't want to lose more money in this kind of situation again...

Discussion (4)

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I don;t think its fair to say that the whole Hyflux saga was due to the fact that Singapore doesn't enforce credit rating system and like you mentioned, less than 50% are rated but yet the amount of defaults in Singapore is very low. While many may argue that the lack of credit rating systems compromise the due diligence process, many of the bond holders in Singapore are actually accredited investors who should have their due diligence processes in place.

I guess to not lose money in the future, perhaps you can invest in companies/bonds that are rated.

Interesting point to note- in the '08 Financial Crisis, a similar argument was made as to whether Cr...

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