Source: Azalea Criticism on the Astrea IV Bonds

Given the massive debate over Temasek’s 4.35% p.a. Astrea IV Class A-1 Secured Bonds that is raging on this island currently, I wanted to take the opportunity to address some common criticism against the bonds. These things have really polarized investor opinion, with criticism ranging from:

Bondholder’s get PE exposure without the upside 4.35% returns is too low in this climate The underlying assets are convoluted and toxic These things are overhyped and complicated, a bad combination 4.35% is too good to be true The rising interest rate environment is bad for bond prices So hot, how to get?

Let’s go through them individually. Do note that this article assumes that you have at least a cursory understanding of the Astrea IV Bonds. If you haven’t, you really should read my previous article that analyses the Astrea IV Bonds.

Bondholders get PE exposure …