CORPORATE DEBTS Singapore has one of the most developed bond markets in Asia. According to the Monetary Authority of Singapore's corporate debt market review, the market capitaliza- tion was more than S$357 billion in year 201 U/The SGD bond market includes Singapore Government Securities (SGS), quasi-government bonds, corporate bonds and structured securities. The SGS is one of the major components of SGD bond market with more than S$138.5 billion outstanding. Generally speaking, there are three types of SGS: treasury bills bonds and non-marketable SGS bonds 2 Treasury bills are short-term marketable government securitys that mature in one year or less. The nominal value of treasury bills is S$1,000, whiclyare issued at discount. On maturity date, the treasury bill holders will receive the full fape value of the treasury b SGS bonds are long-term marketable government debt Scurities with maturities more than one year (2, 5,T0, nominal value of SGS bonds is S$1,000 with fixed interest payments t 15,20 and 30 years). Each SGS bond has a unique issue , ahnuaily over the Itt or the security and face value at mauriysemi- N on-marketable SGS bonds are issued for the Central Provident Fund (CPF) Board. here is no quored market value and the interest rate for these bonds and the advance deposits are bolted to the CPF interest rate. s another maior component of the SGD bond market. llionoutstanding in year 2011. In general, there are Tour types of ercent ofr the corporate bond market) market), hybrid securities (captures 11 percent of the corporate bond market), and securitized debt securities (cap- Besides SGS with more than S$94 bi corporate debts: medium-term notes captures 16 percent bthe corporate bond ebentures(cantures 71 p tures 2 percent of the corporate bond marke 504 Part IV Capital Structure and Dividend Policy Question Describe the characteristics of the following corporate debts: Corporate debentures Medium-term notes Hybrid securities Securitized debt securities References Singapore Government Securities http://singaporebonds.com/category/singapore-government-bonds/ Singapore Bond Market Guide http://www.sgs.gov.sg/publications/-/media/SGS/MAS SBondMarketGuide_2012.pdf