Perp talk: What you need to know about perpetual securities

Perpetual securities should not be confused with conventional bonds and should be considered with caution

The recent trading suspension of perpetual securities (perps) issued by water treatment specialist Hyflux has left investors out on a limb - and out of pocket.

Prior to the suspension, Hyflux's failure to pay last month's coupon of its $500 million 6 per cent perps had resulted in an event of default.

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A version of this article appeared in the print edition of The Sunday Times on June 24, 2018, with the headline 'Perp talk'. Print Edition | Subscribe