What platform should I use for purchase of bonds, and which ones for a decent safety net (i.e. protection from equity volatility)?

You can consider buying bonds with Endowus. We are using UCITS bond funds that are low cost and more importantly, SGD hedged so you dont take FX risks with your bond investments.

Many corporate bonds are only available to accredited investors (high net worth SGD$2mil) with at least $250,000 to fork out per trade. However, there are other options open to retail investors looking to get into bonds:

1. Retail bonds traded on the Singapore Exchange (SGX). There are about a dozen such bonds which are traded on the SGX.

2. For smaller lots but broader diversification of your bond investments, an alternative is a bond exchange traded fund (ETF).

These ETFs offer diversified investment in Asian corporate and Singapore government bonds. For example, the ABF Singapore Bond ETF trades in board lots of 100 units. You can also invest in a Singapore bond ETF via a RSP (regular savings plan) through local banks. These ETFs can be obtained through any brokerage like POEMS, DBS Vickers.

3. For bond starters, my recommendation is the Singapore Savings Bond (SSB), which in the past typically provides a higher return alternative to fixed deposit accounts. You can invest in SSBs from as little as $500. They are easy to purchase, and you can even apply for them through DBS/OCBC/UOB ATMs, or internet banking. https://www.mas.gov.sg/bonds-and-bills/investing-in-singapore-savings-bonds/how-to-buy

They are issued and backed by the Government of Singapore, which enjoys the highest credit ratings from the world’s top three credit rating agencies.

Issued with 10-year maturities, but SSB holders may redeem their bonds at any time, with no penalties.

The interest rate is based on the average yields for benchmark Singapore Government Securities (SGS) recorded the month before the SSB issue. The return starts lower steps up over time. If you hold your SSBs for the full 10-years, your return will match the 10-year Singapore Government Securities in the month before the bond was issued. If you redeem early, you will receive a lower return – a figure similar to that for an SGS of an equivalent tenor.

4. Finally, there are unit trusts which investors may invest in through banks and stockbrokers.

These unit trusts invest in different segments of the bond markets – government bonds, investment grade corporate bonds, high yield bonds, etc.

Unit trusts pool investors’ funds to buy a large portfolio of securities. Investors can buy into UTs for as little as S$1,000 as a lump sum or S$100 a month under a regular savings plan. I get them through a platform like FSMOne.