What are your thoughts on the new Astrea 7 Bonds?

Based on the current economic condition, Astrea7 highly likely to be oversubscribed. The allocation results should be published by 30/5.

Astrea 7 would be listed on SGX, the fees involved is the commission, same as selling shares. Maturity is 10 years, but Astrea has the option to call (meaning redeem) the bond in the end of the 5th year. If they decide not to redeem in year 5, then they would have to pay additional 1% pa coupon from the 6th year onwards.

If you want to continue to diversify portfolio, or you already invested in Bonds, you should continue to do the Bond Laddering strategy. Indeed with rising interest rates, yield on Astrea 7 is less attractive compared to previous issuance. Also Premium vs current 2.53% SSB is lowest compared. Probably oversubscribe given Singaporeans low risk profiles, but don't chiong everything, in case recession hits with cheap buys.

Can anyone enlighten me whether the subscription is guarantee or subject to ballon outcome?

After 30/5 listed on SGX retail investor can liquidate or top up anytime still enjoying the same 4.125/6% 6/10 years return?

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