First off, contrary to what the Straits Times believes, I do not think that the Aspial 5.25% bonds are in competition with the Singapore Savings Bonds.

Such bonds are in no way an alternative to the government-backed SSBs. The main difference is the default risk, which is why corporate debt is always priced to a premium to government debt. The SSB is a risk-free way to squeeze out more yield, whereas corporate bonds are reach out for more yield by taking on more risk. Governments can just print more money to pay back obligations. Companies cannot.

Giraffe Value wrote an extremely comprehensive post that covers basically everything under the sun related to the Singapore Savings Bonds and I strongly recommend it as a read for people who want to gain more knowledge on it.

TradeHaven¬†wrote quite an informative post to give background knowledge on Aspial. If I …