The retail bond space has just become exciting with the launch of two new frameworks last Thursday. Small investors can look forward to a wider range of retail bonds over time, up from the current 11.
Under the new rules, firms that issue bonds can do away with the need to issue a prospectus – which requires time and effort to prepare – to offer bonds to retail investors.
Ms Tan Lay Hoon, CFA board member and co-chair of advocacy at CFA Singapore, said any company listed on the Singapore Exchange (SGX) can issue bonds as long as it issues an Offer Information Statement.
She said: “The ‘seasoning framework’ simplifies the documentation, time and cost for the eligible companies which would like to issue bonds to the public.
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Read the full article at: http://www.straitstimes.com/business/invest/new-rules-mean-bigger-buffet-of-retail-bonds-for-investors