Welcome back to Retire Rich Weekly! This week, we’re diving into the world of Singaporean investments, exploring opportunities for both stability and higher yields. We’ll also be taking a look at the surprising price drops hitting luxury properties at Sentosa Cove.
#1. Seeking Stability? Invest in the Upcoming T-Bill Auction
Attention all T-bill lovers! The Monetary Authority of Singapore (MAS) is holding an auction for a brand new 12-month Singapore T-Bill (Treasury Bill) on Thursday, April 18th, 2024. T-bill is a low-risk, government-backed security to help you boost the stability of your retirement nest egg.
New to T-Bills? No worries! Check out our guide on Singapore Government Securities (SGS) to learn more.
Given the current inverted yield curve environment, the yield is likely lower than the latest 6-month T-bill yield which was 3.75%. Our estimate of the 1-year T-bill yield may be around 3.5%.
Here’s what you need to know about this auction:
Name: BY24101X (12-Month T-Bill)Auction Date: April 18th, 2024Issue date: 23 Apr 2024Maturity date: 22 Apr 2025More Information can be found on MAS website.#2. Chasing Higher Yields? Great Eastern Life’s New Bond
If you want a higher yield than the Singapore Government Bond or Singapore Savings Bond and are willing to take a slightly higher risk. You can look at investment-grade Singapore corporate bonds.
Great Eastern Life recently announced the issuance of a new bond, the 15NC10 T2 Subordinated SGD Bond. This bond offers a potential yield pickup compared to Singapore Government Bonds or quasi-sovereign bonds, potentially increasing your retirement income.
Let’s break down the details:
Final Coupon: 3.928% (subject to change)Issue Date: April 17th, 2024Issuer Credit Rating: S&P AA- (considered high credit quality)Minimum Investment: S$50,000 (lower than the typical S$250,000 minimum, but you need to be qualified as an Accredited Investor)
What does “15NC10 T2 Subordinated” mean?
15: This refers to the bond’s maturity date,
