Corporate bonds
SGD Corporate Bonds (Wholesale)
Bonds issued by Singapore companies and statutory boards that pay a fixed coupon, sold mostly in large lots to institutions and accredited investors.
What it is
In plain language.
A corporate bond is a loan you make to a company. In return the issuer pays you a fixed coupon, usually twice a year, and repays the face value at maturity. Because a company can default in a way the Singapore government effectively cannot, these bonds pay more than Singapore Government Securities, and that extra yield is the credit-risk premium.
Most SGD corporate bonds trade in the wholesale (over-the-counter) market in large minimum lots, commonly S$250,000 per bond. That puts a single direct bond out of reach for most retail investors, who typically get exposure through a bond fund or ETF instead. Issuers range from very strong names like Temasek-linked entities and the local banks down to mid-tier property and industrial borrowers.
How it works
In Singapore, in practice.
Strong investment-grade issuers in the SGD market include the local banks (DBS, OCBC, UOB), statutory boards such as HDB and LTA, and large corporates like CapitaLand, Keppel and Singapore Airlines. Credit ratings from agencies like S&P or Moody's, where available, signal default risk: AAA and AA are very strong, BBB is the lowest investment-grade band, and anything below BBB- is high-yield (also called junk).
Direct wholesale bonds are bought through a bank's private-banking or priority desk, or a brokerage bond desk, often only if you qualify as an accredited investor. Coupons are paid gross. Singapore does not tax most individuals on bond interest or capital gains, though the treatment can depend on individual circumstances.
Bond prices move inversely to interest rates: when rates rise, the market price of an existing fixed-coupon bond falls, and vice versa. Longer-dated bonds swing more. If you hold to maturity and the issuer does not default, you get your face value back regardless of price moves in between.
Run the numbers
See it in your own figures.
See what investing a fixed amount here every month could grow to, at an illustrative return.
What regular investing could grow to
Investing a fixed amount every month, compounding at an illustrative return. Projected, not guaranteed.
Where it sits
Its place in the instrument map.
A sound plan is built in layers, from a guaranteed base up to small, high-risk satellites. This is the role SGD Corporate Bonds (Wholesale) plays, and the layers around it.
Small, high-risk positions you could afford to lose entirely.
Direct stocks and REITs held for long-run growth.
Funds, ETFs, and bonds that spread risk across many holdings.
Government-backed income and the SRS tax wrapper.
Guaranteed and liquid: your CPF base and emergency cash sit here.
The trade-offs
What it does well, and what to watch.
Good for
- Investors who want a higher fixed income than government bonds and can accept some credit risk
- Those who can hold to maturity and ignore interim price swings
- Accredited or higher-net-worth investors who can meet the large minimum lot sizes
Watch outs
- Typical minimum lot of around S$250,000 makes single bonds inaccessible and undiversifiable for most retail investors
- Default risk is real: a single issuer can miss a coupon or fail to repay, and lower-rated bonds default more often
- Bond prices fall when interest rates rise, so selling before maturity can lock in a loss
- The OTC market is less liquid than shares, so spreads can be wide and exiting early may be costly
In the market
What this looks like.
Real Singapore examples, shown to make the instrument concrete. These are illustrative, not endorsements.
How it connects
Instruments that work with this.
SGS Bonds (Singapore Government Securities)
Longer-dated government bonds, from 2 up to 50 years, that pay a fixed coupon twice a year.
Full breakdown Govt bondsSingapore Savings Bonds (SSB)
A government-issued savings bond you can buy from S$500 and redeem any month with no loss of principal.
Full breakdown Corporate bondsBond ETFs
Exchange-listed funds that hold a basket of bonds, giving instant diversification across many issuers in one share you can trade like a stock.
Full breakdown Corporate bondsBond Unit Trusts (Funds)
Actively managed mutual funds where a professional picks and trades bonds for you, available through fund platforms and usable with SRS.
Full breakdown Corporate bondsRetail Corporate Bonds (SGX-Listed)
Corporate bonds offered to ordinary investors on SGX in small lot sizes, so you can buy a single bond without private-banking minimums.
Full breakdownSources
Where the facts come from.
- SGD wholesale corporate bonds typically trade in minimum lots of around S$250,000, which limits direct retail access; retail investors usually use funds or ETFs instead.MAS Investor Education (MoneySense), Bonds: moneysense.gov.sg/articles/2018/10/understanding-bonds
- Bond prices move inversely to interest rates and an issuer can default, so corporate bonds carry credit and interest-rate risk above government bonds.MoneySense, Understanding the risks of investing in bonds: moneysense.gov.sg
See where SGD Corporate Bonds (Wholesale) fits your own plan.
This is educational, not advice. When you want a detailed look at how this fits your situation, a licensed adviser will map it to your income, CPF, and goals.