Bond Investing

This is a useful video for bankers & customers organised by SIAS (Securities Investors Association Singapore).

Tan Su Shan from DBS had explained her defination of misselling. She said risk profile of client must match risk of the product.

Lawyer from Rajah & Tann mentioned that misselling only happens at the point of sales. If no misselling is done at the point of sales, then the bond defaults, that is not misselling, that is a credit issue.

The lawyer added that there is misselling when wrong information about the product is conveyed to the client at the point of sales.

The lawyer said its unusual to have misselling on bonds, because bonds are easy to understand; misselling usually happens to complex products like derivatives.

The panel addresses what can bondholders do in the case of a default.

The panel agrees that clients who wants products with higher return will need to take on higher risk.