There was a lot of negativity in HWZ about this bond, but unfortunately, this did not prevent the bond from being oversubscribed by 7.4x.
- Astrea class A-1 4.35% : 7.4x oversubscribed.
- Perennial 4.65% 3 yr: 9.8x oversubscribed.
- Frasers 3.65%: 3.9x oversubscribed
An "A rated" (i.e. Asf) security with 4.35% coupon is a higher yield than SGD Corporates with comparable 8-9 year maturities. In other words, if we are able to rely on the rating agencies that this is "investment grade", it is better value than existing bonds.
- Commerzbank SGD 2027 - Bid / Ask YTM - 4.529%/ 4.61% Fitch: BBB
- NAB SGD 2028 - Bid/ Ask YTM - 3.881% / 4.086% Not rated
- Lendlease SGD 2027 - Bid/Ask YTM - 3.844%/ 3.919% Fitch: BBB-
- Landesbank SGD 2027 - Bid/Ask YTM - 3.757%/ 3.85% Fitch: BBB
There are bloggers who think they can read the prospectus and decide for themselves whether a security is investment grade or not. I do not pretend to have such powers.