I don’t really cover ETFs but as requested, here you go . . .
New Issuance
Nikko Asset Management launched a SGD investment grade corporate bond ETF for retail investors. The offer closes on Aug 17, 2018. Trading will start on 27 Aug 2018.
During the offering period, the minimum investment is 50,000 units and the ETF will track the iBoxx SGD Non-Sovereign Large Cap Investment Grade Index, a proprietary index developed for Nikko AM.
Market Making
Flow Traders Asia and Philips Securities will be making market for the ETF post listing and have to make market 85% of the time with both bid-ask trades. While the spread can be as wide as 2%, it is expected to be tighter at around 30-50 bps (my guess).
Great for retail investors – Diversification
The ETF is great for retail investors, as these investment grade bonds are, ironically, available only to accredited investors at a minimum clip size of $250,000. With the ETF, you can achieve diversification …