Singapore’s CapitaLand Callable Bond Gets Risky Bets, iFast Says
- Bonds sold by mall unit traded at -0.55% yield to next call
- CapitaLand says to decide on redemption option nearer to date
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Market prices on callable bonds sold by Singapore’s biggest property developer suggest some investors aren’t fully aware of risks associated with the notes’ structure, according to fund researcher iFast Corp.
CapitaLand Ltd.’s S$400 million ($295 million) of securities due in 2022, which the issuer has an option to pay off early at par value on Jan. 12, traded at 102.1 cents on the dollar on Sept. 8, according to Singapore exchange data. That makes the yield to call, which measures projected gains or losses for investors purchasing the securities now if the firm opts to buy them back in January, minus 0.55 percent.