Question

Potential implications of recession to the Singapore bond market?

Answer 1

Implications of recession to the Singapore bond market as follows-

A. Potential degradation on sovereign debt which has been issued by the government of Singapore

B.changes in the credit rating of various investment grading bonds to those of lower grade like junk bonds.

C. Inability of Many companies in order to repay their principal as well as interest obligations and defaulting on their payments

D.lesser amount of volume in the debt market that will also be reflected into the periods of recession.

E. Highly aggressive policy by cutting of the interest rate during the periods of recession in order to stimulate the demand, which will be reflected in cut in coupon payments of various bonds by corporates.

so these are the possible reflection on to the Singapore bond market at the periods of recession.