Unless you’ve been living under a rock the past week, you’ve probably heard of Temasek’s 4.35% p.a. Astrea IV Class A-1 Secured Bonds. In fact, the 4 June Business Times article carried this headline: “Investors can invest in Temasek’s first retail bond to boost retirement income: Ho Ching”. With headlines such as this, my expectations were sky high when reviewing this bond.

Because we dive into the details, do note that these bonds are incredibly complicated asset backed securities. While I have tried to simplify this as best as I can, there will inevitably be certain aspects that I cannot cover in this article. If you want to fully understand your risk and liability, there is no substitute for reading the prospectus.

Basics: What are the Astrea Bonds?

Fund Supermart has a great 2-part article that gives a factual summary of the Astrea Bonds. It’s a bit technical though, …