facebookWhat are the pros and cons of buying corporate or investment grade bonds in the Singapore market? - Seedly

Anonymous

09 Jun 2020

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General Investing

What are the pros and cons of buying corporate or investment grade bonds in the Singapore market?

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Hariz Arthur Maloy

09 Jun 2020

Independent Financial Advisor at Promiseland Independent

Singapore has a strong bond market with almost no tax considerations on income from bonds.

Buying bonds across credit quality will provide you with guaranteed capital when held to maturity and guaranteed income. Lower risk than equity based asset classes or property, bonds allow you to hedge against market volatility.

However with interest rates at near 0 levels, new bonds are less attractive both in yields and also if you're planning to sell them in the future as interest rates may rise and your bond prices fall in relation to it.

Hello! One of the pros for buying investment grade bonds is that it is less riskier than equity. As a result, the downside is that your return might be lower relative to putting your money in the equity market.

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