Shares & Derivatives
Retail Bonds Offering
By Mr. IPO  •  August 22, 2015


There had been an "overwhelming" response on my FaceBook page when i asked if i should starting writing up on Retail Bonds. Let me first do an introductory post before i write on the actual Aspial Bonds. There is a moneysense post on bonds here and you should read it if you are interested to invest in bonds. 

What is a bond?

Bond is a debt instrument where investors lend money to corporate or government entities for a defined period of time in return for a fixed or variable interest rate. Depending on where it sits in the capital structure, the yield also varies. The picture below shows a typical capital structure of a Company that borrows for its business. It ranges from Senior to Junior to Mezzanine then Equity. As you can see from the picture, the higher the protection it offers to investors, the lower the yield.


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By Mr. IPO
Mr. IPO graduated from NTU with a Bachelor in Accountancy (Honors) and started life as a lowly auditor. The audit experience not only polished up his accounting skills but also made him very skeptical about the financial records of companies. He always read the financial reports with a huge dose of salt ...
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