The first tranche of the Singapore Savings Bonds (SSB) offered was not fully subscribed. One would have thought that this SSB would be popular. But it was not to be.
The maximum amount offered is $1.2 billion. Total amount applied within individual allotment limits was $413,161,000. This is just 0.3443 (about one-third) of the maximum amount offered.
There can be several reasons. One must have a Central Depository (CDP) Securities account to begin with. Two, the investors are not entirely taken in by the interest incomes offered in the first tranche. Three, investors are limited by individual allotment limit to subscribe (up to $50,000).
For me, the interest income is not compelling for me to sink my money into it. (See my earlier post.)
Note: Based on the number of applicants, the average amount applied per person was about $21,000.
Copyright © 2015, limkimtong for Living Investment
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