In 2019, I subscribed to $85k of SIA 5-year bonds. Last week, SIA redeemed the bonds and I got all my money back.
In 2020 after COVID struck and I was running out of cash to invest, I sold about half of bonds at slightly above $1 to fund more stock purchases.
So at the end of the day, the bonds did their job which was to preserve wealth and provide a source of liquidity to buy stocks.
Unfortunately, the market for retail bonds have dried up. Temasek is no longer issuing Astrea PE bonds as well. On the flipside, T-bill and cash management account rates are pretty decent. As I'm not very sure what to do with $45k, I will park it in the FSMOne cash management account to earn 3%+ for the time being.
Collecting passive income means that you have lots of cash entering your bank accounts every month, so you have to be prepared to spend a little bit of time doing cash management. Its not that hard as all you need to do is to park them in T-bills or in 3%+ cash management accounts like FSMOne.
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Original Post: BuyafterCrash: SIA 5 yr 3.03% bonds
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