Posted by: donmihaihai | October 21, 2018

Temasek, AAA, high yield bond.

Ok not exactly high yield bond but Temasek issued 5 year bonds at 2.7%pa. Earlier this year Issued a 10 year(or 5 year?) under indirect subsidiary Astrea at 4.35%.

The thing is these bond are opened to public, ie retail investor with min 1K to 2K. It is like throwing some bloody meats into a sea full of hungry sharks.

Invert. If Temasek is doing public services then it is fine if the coupon yield is within the range, ie cost of debt to Temasek. At the higher end or out of the range, well…

Investor has to think twice if Temasek issue some IOU at high interest where it can borrow the same amount cheaper.

I don’t know what is the borrowing cost of Temasek and neither did I read those prospectus or understand Temasek well. But because these are IOU, it must be look into from Temasek point, not investor.

 

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