News about Swiber appear almost everyday

I did a Google search, and all these results came out.

Seems like Swiber is quite a hot topic these days. So what is the hype about Swiber? In one sentence: Swiber, an O&G company, has defaulted on its bonds, which were sold to many individuals in Singapore.

What can we learn from the Swiber episode?

There are many news report about how individuals have bought Swiber bonds, and ended up hurt by the default. This news report particular talks about Singapore’s not-really-rich being burned by Swiber bonds.

When individuals buy the bonds, they should already have understood that there is always the possibility of default. For bonds, the possibility of default is known as the credit risk, or default risk. Whenever you buy individual bonds, the default risk is always non-zero.

When the bonds default, you have no-one to blame but yourself. You …