perpetual securities (perps)

Units in CLAS closed 0.5 cents higher or 0.55% up at 91.5 cents on Sept 2.

A repeat of Hyflux?

About $1.1 billion worth of perps can be called in FY2024. Of that amount, 42% have their first call date this year.

Perpetual securities, cheaper than equity but more expensive than debt, are a double-edged sword.

Clearly, companies in many countries have issued perps, but none more so than in Asia and, in particular, China.

Perpetual securities are helpful for REITs by keeping their gearing levels manageable, but they should be used sparingly

The securities bear a distribution rate of 5.375% for the first five and a half years.

(Dec 20): In the 1970s, long-haired visitors to Singapore were required to cut their hair on arrival as unkempt locks were linked to hippie culture.

SINGAPORE (Apr 10): If success has many fathers, failure in financial markets is no orphan either: It almost always ends up in the lap of retail investors.

(Apr 1): If it walks like a duck, quacks like a duck, looks like a duck, swims like a duck, then it probably is a duck. Why are companies so intent on classifying perpetual securities (perps) as equity, instead of what they really are: financial liabiliti