A large number of retail investors are more familiar with investing in equities (stocks) than there are with bonds. The reason is simple, the “smart money” in Singapore have been recently burnt by failing bonds and defaults. Articles on our richer citizens being burnt are aplenty – here, here, here, here and here – and it’s easy to see why the average retail investor might want nothing to do with bonds right now.

Another reason is the minimum to invest in corporate bonds is usually at least $250,000 per tranche (not everyone has a quarter-million lying around) and one must be qualified as an accredited investor. MAS defines an accredited investor as a person that has net personal assets of at least S$2 million or earned an income of at least S$300,000 in the last 12 months. Do these people have more money than sense? Maybe. Are …