Why did the ABF Singapore Bond index ETF fall 4.48% today 13 Mar 2020? - Seedly
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Fatty Finance

Asked on 13 Mar 2020

Why did the ABF Singapore Bond index ETF fall 4.48% today 13 Mar 2020?

Why the sudden drop? Did something happen?

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CH
CH
Level 7. Grand Master
Answered on 13 Mar 2020

Most likely answer i guess is that market is irrational.

the fund holds 80% in SG gov bonds. AAA rated. chance of bond defaulting is highly unlikely. so i would just sit back and continue to collect my dividends and let my RSP take its own course.

or another reason could be a lot are cashing out on this bond fund to buy other undervalued stocks.

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Fatty Finance
Fatty Finance

13 Mar 2020

This makes sense. Thank you. Probably just a lot of people cashing out.
Joe Lee
Joe Lee, Adventurer at Game of Life
Level 5. Genius
Answered on 14 Mar 2020

With this point in mind, it's not only the bond market in SG. Overseas bond & gold market are tanking as well with the stock market. Which brings me to question

1) Where are all the smart money heading to ? (Usually to bond/gold but does not seems like the case now)

2) Funds and companies having a liquidity crunch ? ​​​

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