There are a couple of retail bonds listed on the SGX. How do you tell whether the 5.25% coupon offered by Aspial’s 5-year bond is too high or the 3.65% coupon offered by Frasers Centrepoint’s (FCL) 7-year bond is too low? To determine the right pricing for these bonds, you need to know what is the credit rating of the bond and the Yield-to-Maturity (YTM) for bonds with similar ratings. Unfortunately, the majority of retail bonds listed on SGX are not rated. On the other hand, thanks to Bondsupermart, we now have benchmarks to determine the YTM and pricing for bonds with various ratings. The blue line in the figure below shows the YTM for bonds rated A3 by Moody’s (equivalent to A- by S&P / Fitch), which is the lowest of all A-grade bonds. The red line shows the YTM for bonds rated Baa3 by Moody’s (equivalent …