4% Yield, Singapore Dollars – IndianOil Corporation bonds, Baa3/BBB- rated, mat. Oct. 2022 | Durig Capital Fixed Income Review

  India Bond Emerging Market Bonds Asia Bond Short Term High Yielding Bond Durig Capital Fixed Income Review We have long searched for a good fixed income investment opportunity in what is considered by some of financial industry’s pundits to be one of the world’s best currencies, the Singapore dollar.  This week we target a medium term investment grade note denominated in Singapore dollars from IndianOil Corporation, which appears to be yielding over 4%.  While this yield may not initially appear to be as robust as many of shorter maturity bonds that we have recently identified, if this bond’s currency continues on its longer term strengthening trend against the U.S. dollar, then the appreciation or changes in the valuation of the Singapore dollar over the next 9 1/2 years to its maturity can be viewed by US based bondholders as being added to its leaner 4.1% coupon.  This IndianOil Corporation note is one of the very few fixed income vehicles that we could find in Singapore dollars that meets the strict standards of Durig Capital and offers an attractive return relative to the risks that we can identify, and it is why we are adding it to our Foreign and Global Fixed Income Portfolio. Corporate Bond linked to the Singapore Dollar This IndianOil Corporation debt, denominated in Singapore dollars, has a coupon of 4.1% and currently trades near or slightly above par.  This is a noticeably lower yield than some of the bonds we have selected in the recent past, especially […]