Nonetheless, Astrea bonds, which are backed by private equity and managed by an indirect subsidiary of Temasek, are investment grade. Both Astrea 7A 4.125% and Astrea 8A 4.35% are A+-rated.
Where can investors find shelter? Hopefully in a place that offers them relatively risk-free yields while they wait out the tariff storm. For bonds, and bond-like instruments, the Singapore dollar T-bills are popular go-to risk free investments to park excess cash. The Monetary Authority of Singapore (MAS) T-bills are as safe as deposits.
As T-bill rates have fallen during the past 12 months, some yield-seeking retail investors have turned to retail bonds (see ”Investment-grade retail bonds on SGX”). The local retail bond market is underdeveloped.
