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Anonymous

24 Feb 2020

General Investing

What if I invest in Temasek bonds now? Ideally, would I get back the capital I put in?

I would like to invest in Temasek bonds, however, I missed the IPO. I would like to invest in it now, however I am not sure how to calculate the risk associated, and hence I'm not sure if I would be able to get back the capital invested

Discussion (2)

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There is a calculator on temasek website.

https://www.temasek.com.sg/en/our-financials/te...

i am assuming you are referring to this ticker (SGX:TEKB) available to retail investors.

as of today, you will get 1.91% yield to maturity.

you will get the remaining coupons (interests), but you will not get back your "capital" even if temasek does not default.

reason is you buy today price is $1.037, but temasek will redeem at $1.

hope this helps.

One never knows.

However i could imagine that the risk of Temasek defaulting should be very low.

There is no guarantee however for 100 %...

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