Question

Explain what is a 15-years AA rated Corporate Bonds, which is one of the bond sector.

Suggest one 15-years AA rated Corporate Bonds from ASEAN countries.

Answer 1

AA rated bonds are just a notch below prime grade AAA bonds. While AAA bonds may be virtually risk free, AA corporate bonds come with a little amount of risk. The AAA bonds are not easy to come by while AA bonds are available. For a foreign investor AA bond provide low risk and a higher return. This come sin handy for diversification purposes.A 15 year AA bond is a long term bond issued by a corporation.

One example of AA rates Corporate bond is:
EDRA ENERGY bond (Tranche No 24) expiring in 2033 which trades in Malaysia

It has nearly 14.4 years tenure left.