Dear readers, recently, Azalea has launched Astrea 8 Private Equity (PE) bonds, consisting of the following:
Class A-1 bonds in SGD with a fixed coupon of 4.35% per annum
Class A-2 bonds in USD with a fixed coupon of 6.35% per annum
I believe Singaporeans here are more familiar with Singapore Savings Bonds, where the intent of the bonds is to help savers save and grow their savings through the bonds at relatively low risk. Hence Private Equity Bonds, as opposed to Savings Bonds, are bonds that are vested in Private Equity and hence there will be more risks as compared to Savings Bonds.
And also, while the annual returns on the Astrea 8 Private Equity bonds are attractive, this is precisely because of the relatively more risks of these bonds. As the common saying goes, the higher the risk, the higher is the return.