Hot on the heels of Aspial, Perennial and Oxley, Hyflux has launched an IPO for its retail 6% perpetual capital securities (perps). I used to own its existing 6% preference shares when it launched in 2011. However, that was before I calculated whether it had sufficient margin of safety based on Benjamin Graham’s criteria. After I calculated the figures, I sold it off in Jan 2014. Hyflux’s preference shares were the first bond / preference shares that I evaluated using Benjamin Graham’s criteria of minimum average earnings coverage and minimum current stock value ratio as discussed in The Lost Art of Bond Investment. When I posted it in Jan 2014, I did not expect retail bonds to become so popular. The criteria have been very useful in assessing whether the various retail bonds launched since Aug last year have sufficient margin of safety.

Since the post 2 years ago, has …