I am surprised to read the below news in Business Times, while at the same time getting news from my Relationship Manager that the bonds, perpetual bonds, and debt notes issued by Singapore companies are getting snapped up within a day of issue and always at the low end of the guided coupon rate.......... Are the Singaporean investors not savy enough? Caveat Emptor!
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PUBLISHED OCTOBER 06, 2014
Flood of junk bond issues worries investors
Emerging market supplies set to hit a record as corporates from China and Asian countries tap low interest rates
BYNEIL BEHRMANN
GLOBAL investors are beginning to become wary of low yielding emerging and European lower grade corporate "junk" bonds following a flood of new supplies on the market.
The result has been a decline in prices and a rise in average yields since the market peaked in the second quarter of this year, traders and analysts say.
In the first three quarters of 2014, US$397 billion of emerging market bonds were issued, according to data from BondRadar, which monitors the primary new issue international bond market.
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