Singapore's Rich Turn Wary of Bonds Sold by Smaller Firms
- Rising leverage costs and defaults dampen appetite: Eastspring
- Singapore borrowers face S$23 billion bonds due by end 2020
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Singapore’s smaller companies will likely have to pay more to roll over borrowings in the local bond market ahead of unprecedented maturities, as the wealthy investors who constitute a key buyer base get cold feet.
Recent defaults along with rising borrowing costs for private banking investors have hurt demand, according to Eastspring Investments portfolio manager Danny Tan, who helps manage the Singapore Select Bond Fund. The fund had S$854 million ($628 million) of assets under management as of May 31.