Launch Exclusive Promo
For a limited time, enjoy up to 50% rebate off annual fees when you invest in CapBridge Preferred Access Bonds!
*Promotion lasts until 31 December 2021.
Investors in Silver and Gold Tier will have their annual fees reduced in the form of rebates.
CapBridge reserves the right to vary our fees or promotional period without notice.
Bonds are debt securities issued by corporate or government entities (the bond issuer). Entities usually issue bonds in order to raise money to finance various projects and activities.
When you purchase bonds, you are essentially lending money to the bond issuer in return for interest. This interest, also known as the coupon, is a fixed percentage rate which will be paid out to the bond holder at regular intervals, up until the maturity date of the bond. When the bond matures, the bond holder gets back the full principal amount, also known as the face value, par value, or capital.
Bonds offered on CapBridge are typically wholesale bonds issued by reputable companies, but are denominated in $1,000 instead of the usual S$250K or US$200K.
You can typically classify bonds into 3 types: government/sovereign bonds, institutional-grade corporate bonds, or junk bonds.
- Government / Sovereign Bonds
As the name implies, government/sovereign bonds are issued by government and sovereign bodies. For example, Singapore Government Securities or the U.S. Treasury. Backed by the full reputation of the government, such bonds are widely traded and are typically regarded as risk-free. As such, they usually have the highest credit ratings and the lowest yields among bonds, making them a good defensive asset for investors with the lowest risk tolerances.
- Junk Bonds
At the other end of the risk spectrum are junk bonds. These are bonds issued by companies which are rated as less creditworthy, or otherwise not rated at all. In other words, these companies have a higher risk of default. Consequently, these bonds will usually offer higher yields to compensate investors for their risk.
- Institutional-Grade Corporate Bonds
Institutional-grade corporate bonds sit nicely in the middle of the spectrum, offering great risk-adjusted returns. Institutional-grade (IG) bonds are rated by established rating firms (such at Moody’s, S&P & Fitch) for their creditworthiness, and only the top issuers get the IG grade. They offer a good balance between yield and risk, and are a great addition to any investment portfolios.
There are a few key components to a bond.
This is the amount which will be returned at bond maturity. Note that it may not be the same amount that the investors has paid for the bond. As the bond is traded on the secondary market, its price may fluctuate, but the principal amount is what will be returned at maturity. The principal amount is also known as the face value or par value.
Also known as interest, it is the annual rate that the bond issuer must pay the bond holder based on the principal amount. For example. if the coupon rate is 5% and the principal amount is $10,000, that means that the bond holder will receive $500 per annum for the duration of the bond. Payment schedule is generally indicated when the bond is sold, usually on an annual, semi-annual, or quarterly basis.
This is the date when the bond matures and the bond issuer must repay the principal amount to all bond holders in full.
Wholesale bonds, make up the majority of the bonds available in the market. They are typically bought and sold Over-The-Counter (OTC) – the transaction happens directly between the buyer and seller, with a broker acting as the intermediary to establish the bid and ask quotes. Wholesale bonds usually require a minimum investment amount of S$250K or US$200K, depending on the bond denomination. Most reputable companies offer wholesale bonds as a means to borrow money.
On the other hand, retail bonds are bonds that are traded on a public stock exchange. While they are offered in smaller ticket sizes, they pale in comparison to the quality and variety of bonds available in the market. For example, as of July 2021, there are only 11 SGD-denominated retail bonds available to investors, compared to more than 300 wholesale bonds present on OTC.
Bond ranking, or seniority, determines the order of repayment in the event of a default. In general, bond ranking order are as follows:
Sitting at the top of the ranks are secured debt, which are bonds that are backed by collateral or company assets. In the event of a default, these assets will be sold and the money recovered will be used to pay off the holders of the bond.
Senior / Unsubordinated Bonds
Next in line are senior bonds, which get the top priority in repayment during a default event.
Junior / Subordinated Bonds
Ranked at bottom are junior bonds, which is why that are ‘subordinated’. Should a default occur, junior bonds are paid out last, using whatever remaining assets left after the senior debt has been repaid.
Investors should also note that equity is considered subordinated to all forms of debt. In other words, equity is ranked lowest amongst any claim on a company’s assets. In a default event, equity holders get paid last, and in most cases, recover very little of their investments.
Newly issued bonds are sold in the primary markets, typically through an auction.
Once the bond has been sold in the primary market, they can be traded in the secondary market. This typically happens over-the-counter through a broker.
On CapBridge, investors can buy and sell bonds directly using our digital interface, for a convenient and hassle-free experience.
Login to your CapBridge account and enter the bonds trading platform via the menu on the left.
Click on Account > under ‘Funding Instructions – Cash’, click on Proceed > follow the instructions as indicated.
Please expect 2 to 5 business days for funds to be available subject to our bank’s processing and clearing, and your individual bank’s cut-off time.
If you did not enter a Funding Reference or entered an incorrect Funding Reference, the transfer process may take longer as we will need to contact you to verify the transaction.
Login to your CapBridge account and enter the bonds trading platform via the menu on the left.
Click on Account > under ‘Withdraw Cash’, click on Proceed > follow the instructions as indicated.
Withdrawal requests submitted and approved prior to the cut-off times will be processed for same-day credit. However, it may take longer for your bank to credit the funds to your bank account.
I am trying to deposit non-SGD funds, but I keep getting the notification 'Please contact your administrator to set-up your accounts for this currency.'
On opening a bonds account on CapBridge, you can choose to provide a USD bank account, a SGD bank account, or both. You will need a USD bank account to trade in USD bonds; and a SGD bank account to trade in SGD bonds.
To add a USD bank account after opening a SGD only bank account, please contact your sales representative.
We currently do not charge any processing fee on deposit or withdrawal, however transaction fees may be imposed by your remitting bank and/or intermediary bank.
We do not facilitate third party fund transfers or transfers via remittance services such as Wise. Funds must be transacted via bank account held in your name.
I am not able to locate the beneficiary bank in my banking application, how should I proceed with my funds transfer?
If you are transferring funds from a different country, you may need to locate the beneficiary bank under Overseas Transfer. Many banking applications identify beneficiary banks via swift code provided, as such, please kindly ensure the swift code is indicated correctly. You may reach out to your remitting bank for further assistance.
It is mandatory to create a Funding Instruction and indicate the Reference ID in your funds transfer. This Reference ID is unique for every transaction and allows us to efficiently identify your incoming funds for proper credit to your account.
Yes, please ensure that the funds deposited matches the amount indicated in your funding instruction, otherwise there will be a delay with clearing. Please also select to bear the transaction fees imposed by your remitting bank and/or intermediary bank to ensure full amount arrives in beneficiary bank account.
Making a Transaction
Simply login to your CapBridge account and access the bond trading platform via the menu on the left. If you do not have an account, you can sign up here.
Select your preferred bond. Click “Buy” if you are buying a new bond, and “Sell” if you are selling your existing bond. Note that you will not be able to sell bonds you do not own.
Select your preferred order type, price, quantity and validity period. Click “Submit”.
Review your order and click “Confirm”.
Click “Done” after your order is placed.
Bond prices are available on the CapBridge investor platform. Simply log in and access the bond trading page via the menu on the left. Once you enter our bond platform, you will be able to see all the bond prices available.
The prices shown on our platform may be delayed. The actual transacted price may or may not be the same.
The minimum investment amount is $1,000 for each bond.
Accrued interest is paid to the seller of the bond to compensate for the loss of the expected coupon to be received.
Yes. USD bonds can only be purchased using USD, and SGD bonds can only be purchased using SGD. We are targeting to enable foreign currency exchange at a later date.
Yes. Orders will automatically expire after 14 days.
As long as your order has not been fulfilled, you can cancel the order. Please go to Portfolio > Orders > locate the order you wish to cancel > click ‘Cancel’.
A Market Order is an order to buy or sell based on any market price that is obtained at the point of transaction.
A Limit Order is an order to buy or sell only if the price of the bond matches your preferred price. We will attempt to meet your preferred price for 14 days from the day your order is placed. After 14 days, your order will automatically expire.
GTC stands for Good-Till-Cancelled. If you select GTC, we will attempt to fulfill your order for 14 days. You order will automatically be cancelled after 14 days.
GTD stands for Good-Till-Date. If you select GTD, you can select your preferred date for the order to be cancelled if it remains unfulfilled. Note that dates available are within a 2-week range.
Singapore Citizens and Investors in Singapore will have to be verified Accredited Investors to be able to trade bonds on our platform.
Investors outside Singapore will have to comply with any local or applicable regulations. Please create an account here, and our relationship manager will follow-up with you to guide you through the process. Currently, we do not accept any U.S. Citizens/Residents.
Investors outside Singapore must comply with any local or any applicable regulations. Please create an account here and our relationship manager will follow-up to guide you through the process. Currently, we do not accept any U.S. Citizens/Residents.
Monday to Friday, 9am – 5pm (Singapore Time, GMT+8)
Markets are closed on weekends and Singapore public holidays.
Simply login to your CapBridge account and enter our bonds platform via the menu on the left. To view your bond holdings, click on Portfolio > Holdings.
No. You can sell your bonds anytime.
To be entitled for coupon payouts, the bond must be purchased and reflected in your portfolio before the bond coupon payment date.
Coupons will be automatically credited into your account based on the bond’s currency once the payment has reached us.
Upon maturity, the principal value based on the bond’s currency will be credited into your account once the have been received by us.
Trades on our bonds platform are settled instantly. You may check your cash holdings under Portfolio after your transaction.
A BondbloX is issued by BondEvalue Pte Ltd, traded on the BondbloX Bond Exchange (“BondbloX Exchange”), and represents fractional interests in an underlying bond. Unlike a conventional bond, the minimum denomination for a BondbloX is 1,000. BondbloXs are supported by underlying bonds which are custodised by global Custodian, Northern Trust. Ownership of BondbloX is recorded on blockchain and represents definitive ownership of underlying fractional interests in the underlying bonds.
BondbloX Bond Exchange (BBX) is operated by BondEvalue Pte Ltd. BondEvalue Pte Ltd is currently approved as a Recognised Market Operator (RMO) under the Monetary Authority of Singapore (MAS). CapBridge Pte Ltd is a member of the Bondblox Bond Exchange.
More details can be found on the MAS’ Financial Institution Directory: https://eservices.mas.gov.sg/fid/institution/detail/235437-BONDEVALUE-PTE-LTD
BondbloX represents fractional interests in the underlying bond and an investor would expect to receive the same payment distribution after deducting relevant fees as the underlying bond. The BondbloX investor also bears the default risk of the underlying bond issuer, no different from the regular bond.
However, an investment in BondbloX is not an investment in the underlying bond and BondbloX investors’ do not have voting rights.
Yes. All accounts currently work on a pre-fund basis. You need to fund cash prior to placing an order to buy or have the requisite BondbloX prior to placing an order to sell. Sufficiency checks are performed prior to order placement. These holdings are earmarked and may not be used for further trades while the existing order remains open.
Unlike traditional bond markets, BondbloX settles instantly once the order is matched. Settlement occurs on blockchain and we can achieve this because the exchange operates on a pre-fund requirement and blockchain enables atomic swap of cash for BondbloX and vice versa.
The exchange supports both market and limit orders. Partial fills are allowed. Market orders are Fill-and-Kill.
All orders that remain open for longer than 14 days automatically expire.
No, you do not get voting rights, even on a fractional basis, on the underlying bond.
The security identifier for BondbloX contains a prefix “BEX” with the ISIN of the underlying bond. For example, if the ISIN of the underlying bond is XS1298431104, its BondbloX security identifier is BEXXS1298431104.
No. BondbloX can only be traded on the CapBridge platform.
All payments made on the BondbloX will only be satisfied by payments received on the relevant underlying bonds. Investors in BondbloX will thus be assuming the risks associated with the underlying bonds they invest in, including market volatility on the prices of the underlying bonds and the credit risk on the issuer. Please refer to the non-exhaustive risks found in BondEvalue’s Information Memorandum under the subject “Investment Considerations” that is available on http://www.bondbloX.com.
The minimum denomination for a BondbloX is 1,000. Users may trade in integrals of 1,000. There is no minimum trading activity required to maintain the account.
Yes. To place orders for USD bonds, you need US dollars in your account. To place orders for SGD bonds, you need SG dollars in your account.
Ownership of BondbloX is recorded on blockchain and the blockchain is maintained by multiple parties each deploying nodes to run consensus and together share the same data. The debentures register maintained on blockchain provides the definitive record of BondbloX ownership.
Fees & Charges
You will be qualified for rebates off annual fees if your portfolio value exceeds USD50,000 when market closes on last trading day of the month. SGD denominated bond holdings will be taken into account as USD equivalent.
Please refer to our promotion for tier details.
Yes, rebates will be credited in respective currencies.
Entitled rebates for prior month will be credited after the 22nd of the following month. You may verify the credit transaction under Portfolio > Cash Transfers.