Today we are going to cover an asset class that not many Singaporean knows about.
They are not stocks, not REITs, and definitely not your typical savings accounts that pay 0.5% interest rate -.-.
They are bonds.
Today you will learn what retail bonds are about, and how you could use it to diversify your investment and achieve a stress-free predictable return.
Previously, we have also wrote about Singapore Government Securities and Singapore Savings Bonds.
So let's begin!
What Are Bonds
#1. Bonds Are Debt
Companies can raise capital in a number of ways.
They could go to the market to sell more shares and use the new capital to fund expansion. Imagine I am a farmer raising pigs for parma ham, and I need capital to expand and to buy a thousand more hogs.
I could approach interested parties Mario and Luigi and say to
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