Ups and downs when investing in perpetual securities

While they offer higher coupons, they come with interest-rate and credit risks

The source of the most recent concerns about perpetual securities stems from water treatment firm Hyflux's decision to suspend trading in its perps. PHOTO: LIANHE ZAOBAO
New: Gift this subscriber-only story to your friends and family

Perpetual securities (perps) have been making headlines lately and likely giving investors second thoughts about adding them to their portfolios. The source of the most recent concerns stems from water treatment firm Hyflux's decision to suspend trading in its perps.

But while perps have downsides, including no maturity date, they can work for some investors.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.

A version of this article appeared in the print edition of The Sunday Times on June 24, 2018, with the headline Ups and downs when investing in perpetual securities. Subscribe