Singapore Government 10 year bond as Collateral

[johnnydash]

Does anyone have experience with using 10 year bond as collateral to secure a loan? Lets say the 10 year bonds are worth 1 million what is the loan amount i can obtain?

Also what will the interest rate be like(similar to mortgage loan)?

Also what are the things one should take note of?

[propertyinvestor]

Yes you can use them as collateral, but the bank will not value it at Face value. Usually 95% of face value. Interest on the loan is between you and the bank to negotiate.

[propertyinvestor]

Yes you can use them as collateral, but the bank will not value it at Face value. Usually 95% of face value. Interest on the loan is between you and the bank to negotiate.