We waited for more details of the Singapore Savings Bond, a bond the Singapore Government came up with to help Singaporean’s save and turns out the factsheet is out. You may want to find my first view of it here.
The most important info is how the interest is structured:
And my hypothesis was correct, that somehow the Singapore Savings Bond manages a basket of SGS Bonds of different duration. If you withdraw 3 years into it, you get the yield equal to the duration of a 3 year SGS Bond.
If you proceed to the fourth year, your yield is HIGHER than that of a 4 year SGS Bond to make up for the yield you missed out for the first 3 years.
I like this bond for the following characteristics:
- Government Backed as compared to other investment assets
- Liquid, you can pull out rather fast, AND you don’t …