Why is Singapore running for cover?

摘要

Covered bonds are about to be issued from Singapore, where DBS has finally registered a programme to issue in the format. It's about time. There has been speculation that the city-state would originate covered bonds for the past eight years, or more. Potential buyers will be salivating at the ultra blue-chip credit quality brand Singapore will bring to the rarified world of covered bonds. But why now? Does it mean that DBS is preparing the way for alternative funding sources in the event that another crisis slams down the shutters on the issuance window for conventional debt?