Similar and correlated.
Both are debt instruments of the government but SSB is offered to make SGS more accessible to individual investors (mom and pops especially). To put things into perspective, SSB min. is $500 while SGS is $1000. SSB rates are based on the average SGS yields the month before and the actual formula used to determine the rates can be found on the website. In terms of returns, SSB's annual returns for a particular month's issue changes year on year. SGS returns depends on the economic environment and time to maturity. SGS annual returns are fixed for the term of the issue.
-SGS types: 1) Bills (less than 1 year to maturity) 2) Bonds (more 1 year to maturity, up to 30 years)
Hmm liquidity is a little bit tricky to explain, I'll try my best. For SGS, you have to sell your bond on SGX/secondary market. If there's no willing buyer, you can't sell it. Also, you have to see whether the selling price is something you are willing to accept, taking into account the transaction and brokerage fees that you will have to pay too. There is a waiting time before the transaction is completed. For SSB, you can do an early redemption but your $$ will only be returned to you the following month, i.e. so whether you redeem it on 2 July or 27 July, you will only get back your principal in August. Also, you have to pay $2 for early redemption. Both instruments are not the most liquid, but I think SSB is pretty decent still.
Both are close to 0 risk, with SGS being rated AAA. Since SSB is based on SGS, you can consider its rating as AAA too.
Similar and correlated.
Both are debt instruments of the government but SSB is offered to make SGS more accessible to individual investors (mom and pops especially). To put things into perspective, SSB min. is $500 while SGS is $1000. SSB rates are based on the average SGS yields the month before and the actual formula used to determine the rates can be found on the website. In terms of returns, SSB's annual returns for a particular month's issue changes year on year. SGS returns depends on the economic environment and time to maturity. SGS annual returns are fixed for the term of the issue.
-SGS types: 1) Bills (less than 1 year to maturity) 2) Bonds (more 1 year to maturity, up to 30 years)
Hmm liquidity is a little bit tricky to explain, I'll try my best. For SGS, you have to sell your bond on SGX/secondary market. If there's no willing buyer, you can't sell it. Also, you have to see whether the selling price is something you are willing to accept, taking into account the transaction and brokerage fees that you will have to pay too. There is a waiting time before the transaction is completed. For SSB, you can do an early redemption but your $$ will only be returned to you the following month, i.e. so whether you redeem it on 2 July or 27 July, you will only get back your principal in August. Also, you have to pay $2 for early redemption. Both instruments are not the most liquid, but I think SSB is pretty decent still.
Both are close to 0 risk, with SGS being rated AAA. Since SSB is based on SGS, you can consider its rating as AAA too.