Wednesday, 27 March 2019

SIA 5 yr 3.03% bonds

Applied for the SIA 3.03% 5 year bonds. Despite the placement tranche being heavily oversubscribed (higher oversubscription that Astrea IV), the demand for retail tranche was only slightly oversubscribed. 

SIA's retail tranche was upsized to $450m and therefore much larger than Astrea IV's $121m retail tranche, so you either got everything or most of what you applied for. 

As a result, I got allocated 85,000. I plan to hold them to maturity unless there are compelling stock market opportunities. My cash warchest is still in the 6 figure range despite this 85k purchase so I still have enough short term cash to snap up cheap buys. But if there is a prolonged downturn, then selling bonds to buy stocks might be a good plan.



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