Restructuring my Singapore Savings Bonds (SSB) portfolio

Recently, I have restructured my Singapore Savings Bonds (SSB) portfolio by divesting two tranches of SSB which were bought with cash at 2.57% and 2.63%. The funds, consolidated with the proceeds from the sale of my previous house, were then parked in several fixed deposit accounts with an average interest rate of 3.75%.

Separately, I have also bought Singapore Savings Bonds (SSB) at interest rate of 3.07% using my Supplementary Retirement Scheme (SRS). I had wanted to purchase Mapletree Logistics Trust (MLT) using the SRS funds but decided not to after observing the declining unit price for the past one year.

Admittedly, I was late to the game as both the fixed interest rates and Singapore Savings Bonds (SSB) had started to decline in recent months. Previously, the inertia to restructure my Singapore Savings Bonds (SSB) was because I was expecting the rates to keep rising against the backdrop of the US Federal interest rate hikes. Henceforth, I was caught by surprise that the 10-year SGS yield declined so drastically since March 2023 (Singapore Savings Bonds (SSB) interest rates are based on the average SGS yields the month before).

Apparently, the market is expecting that the US Federal interest rate hike on 4 May 2023 to be the final one as the financial market is in jitters following the swift collapses of four US regional banks and the demise of Credit Suisse Bank. The bank failures shook US depositors’ confidence and led to flight to safety. Over in Singapore, the troubles of US banks led to a revival in interest in Singapore Savings Bonds (SSB) as demands returned.

Based on the above data, Singapore Savings Bonds (SSB) were selling like hotcakes in January 2023, with demand hitting $900 million. However, demand for SSB plunged to $258 million in March 2023. Subsequently, the dramatic failures of Silicon Valley Bank, Silvergate and Signature Bank in March ignited global fear of contagion in the financial sector. As a result, demand for SSB returned, with $700 million SSB being sold in April and May 2023.In this article, I will share my insights on how Singapore Savings Bonds (SSB) can play a part in strengthening your wealth portfolio through passive income. In this article, I will be sharing my SSB portfolio as well.

My SSB portfolio

I started contributing to SRS only in 2019. In my previous article, I have also shared the strategy of using SRS to purchase SSB. Below is the breakdown of my current SSB investments. [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

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