
Bonuses for selling risky debt put Singapore banks in the hot seat: Bloomberg
Bond issuers offer rebates of up to 1%.
An unprecedented wave of defaults has swept Singapore in recent months, putting local banks under scrutiny for raking in bonuses by selling risky debt, according to a report by Bloomberg. The Monetary Authority of Singapore (MAS) stated that an industry group is reviewing the practice.
"Bond issuers offer banks rebates of as much as 1 percent as incentive to sell unrated securities, according to a Bloomberg News analysis of figures from bond-sale arrangers and compiled by analysts," the report stated.
Read the full report here.