It is heartening to note that the recent defaults of bond issuers are receiving the attention of the Monetary Authority of Singapore (MAS) ("Banks' rebates for bond sale may be conflict of interest"; Aug 26).
MAS is reported to be taking action so that bond investors are provided with more information before they buy the bonds.
Perhaps MAS can consider lessening the risks for bond investors, as follows:
- MAS could provide guidelines to banks that corporate bonds be issued in lots of $50,000 or $100,000, instead of the current $250,000.
- MAS and/or the Singapore Exchange (SGX) could help expedite initial public offerings of bonds to retailer investors.
- MAS together with the Securities Investors Association Singapore could help highlight the risks of bond investing, especially to retail investors.
Goh Geok Huat