From a high of $14 in May, OCBC share price suffered a major “earthquake” and corrected 25% to reach a dismal level of $11.10 on 6 September. The plunge in OCBC share price also led to the dividend yield to reach the alluring level of 3.51%. Incidentally, OCBC issued a SGD1 billion perpetual securities with coupon rate of 4% in August. In the past, OCBC had also issued preference shares as well.

OCBC perpetual securities was issued at a time when investors are hungry for yield in a highly volatile environment. Being ranked senior than ordinary shares, perpetual securities are usually considered to be a safer investment product as compared to the shares of the same company. But it is interesting to note that the coupon rate of OCBC perpetual securities is 4%, slightly higher than the dividend yield of 3.51%. If OCBC share price …