facebookWhat are your thoughts on the new Astrea 7 Bonds? - Seedly

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Joel Koh

Joel Koh

Writer at Seedly

19 May 2022

βˆ™

General Investing

What are your thoughts on the new Astrea 7 Bonds?

Discussion (10)

What are your thoughts?

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

Tan Choong Hwee

Tan Choong Hwee

Edited 25 May 2022

Investor/Trader at Home

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.

Kent Toh

Kent Toh

24 May 2022

Consultant at Sprinklr

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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Context always matters. In this case, the upside in a rising interest rate scenario, after accountin...

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