1. SSB Was Massively Under-Subscribed
Honestly, I was thinking if the Mrs would get her full allocation for the first issue of the
Singapore Savings Bond. She applied for $5,000 in the middle of September. The 2.63% of returns isn’t fantastic, but definitely not to be sneezed at for what is essentially a risk-free rate.
But it seems we are the rare few that thought this way.
In the end, all applications (up to the maximum limit of $50,000) were accepted.
According to this
document, MAS actually prepared $1.2 billion for this first issue but only slightly more than $400 million from ~20,000 individuals was taken up. Seriously, I wonder if MAS is embarrassed by this public dismissal of the SSB.
2. Why The First Issue Was Unpopular
- With interest rates rising (sooner or later), expectations of higher rates in subsequent issues are there. Many have ...
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