Securitization

Securitization

Securitization allows an issuer to finance certain assets, mortgage loans and/or consumer debts and transform them into bonds or other forms of debt security that can then be traded or sold to a trader for a certain sum that can be used by the company to invest in itself or to expand the company. 

What Is securitization? 

Securitization is a process that allows a company to pool all of its assets and transform them into bonds or securities that can bear interest. Investors can now purchase these bonds for a certain amount, and in return they will receive the principal and the interest amounts. A mortgage-based security is one fine example of securitization. 

Understanding securitization 

Take mortgage-based security loans for example. The original lender will sell a bunch of home loans to a bank or any other financial institution that in turn will turn these loans into a single unique investment package. The bank will then allow the public to invest in the package, for which they will receive principal and interest amounts from the various loans inside the package. 

How much the public receives in the form of interest and principal will be in proportion to the amount they invest in it. Unlike other investments, it’s a win-win situation for every party involved. The investors get paid in the form of principal and interest amounts, while the original lender gets to clear out any liabilities that often arise in these situations. This is one of the reasons why the public isn’t as enthusiastic about it as they once were. 

The public believes that securitization often leads to unnecessary borrowing and debt, especially after the 2008 economic crisis.  

Working of securitization 

Securitization is a process that begins when the original lender sells a bunch of assets to a financial institution. Here’s a detailed breakdown of how the securitization process works. 

  1. The original lender who is in possession of certain assets that it no longer needs may decide to sell them. This not only allows them to get rid of unnecessary assets but also helps them avoid any liability from the assets. They will then pool the assets into a reference portfolio, ready to be sold. These assets can be anything from mortgage loans to personal loans. 
  1. The original lender will then sell the reference portfolio with all its assets to a financial entity such as a bank or private lender. The financial entity will then turn the assets into a security where the public can invest in. Once an investor invests in the assets, he will in return receive principal and interest payments proportional to the stake they bought. The higher the securities you buy, the higher your stakes will be in that reference portfolio. 
  1. Potential investors purchase these securities at a certain rate of return. The original lender receives all the payments, which will be then transferred to the bank apart from a small fee. The bank will then pay the investors from that. 

Advantages and disadvantages of securitization 

Here are the advantages of securitization: 

  • The original lender, also known as the originator, is in possession of a bunch of assets that he is unable to sell. Securitization allows him to sell these assets and free up the money blocked in those assets. This allows him to focus on other investment options. 
  • The financial entity can shift the risks by securitizing its receivables. 
  • The financial entities get to diversify its portfolio by bringing in securitized securities. These bonds are a lot different than any other form of security. 
  • The originator can also gain some financial leverage from the financial entities. This can certainly help when the originator is in need of some cash. 

Here are some disadvantages of securitization: 

  • There’s very little to no transparency between an investor and the bank. That means an investor has very little knowledge of the kind of assets that are involved in the said bond. 
  • The securitization process involves multiple parties and handling everything can be a difficult process. 
  • There are a lot of processes involved in securitization, including legal proceedings, administrative and underwriting, among others. This increases the cost of securitized bonds. 
  • The investors are the ones at the highest risk and the originator gains the most.

Example of securitization 

Here are a few examples of securitization: 

  • Government National Mortgage Association (GNMA) 
  • Federal National Mortgage Association (FNMA) 
  • Federal Home Loan Mortgage Corporation (FHLMC) 

Frequently Asked Questions

Securitization involves the financing of multiple types of assets into a singular unit. Here are the 5 asset types of securitization: 

  • Mortgages: In mortgages, securitization happens with home loans that are combined into one large portfolio before it is sold to financial institutes. 
  • Auto loans: Auto loans or car financing is a form of ABS securitization that is initially combined together but later split into multiple groups according to their risk profiles. They are then sold to potential investors. 
  • Credit card receivables: It’s also a form of ABS securitization and it involves buying a certain stake from the credit card balance. 
  • Student loans: Student loans are provided to students who require loans to finish graduation from college. It’s a great opportunity for investors as these are protected by the US Department of Education. 

Securitization and factoring are two different ends of the spectrum. Securitization is the process of financing and refinancing existing assets into one single unit, which the public can invest in. While factoring refers to the process of selling receivable accounts in a bid to increase the flow of cash. 

It refers to the process of pooling certain assets, such as debt securities, into bonds that can be later sold to financial entities/investors. These bonds are also called collateralized debt obligations or asset-backed securities. 

It is the process of financing the assets into a bond or a security debt that can be sold or traded for a certain sum. The investors who buy them gain the principal and the interest amount. 

MBS refers to mortgage-backed security, whereas ABS refers to asset-based security. Mortgage-based security pools in mortgage loans as assets, while asset-based security pools in student loans as assets. These assets are non-mortgagable assets in nature. 

Related Terms

Most Popular Terms

Other Terms

Know More about

Margin Trading

Bond Trading

Securities Lending

Supplementary Retirement Scheme

Money Market Funds

REITs ETF

Singapore Stocks

Opening Investment Account

Forex Trading

Option Trading

CFDs

Buying Unit Trusts

Treasury Bonds

Robo Advisor

Online Investing

Tools/Educational Resources

Sti components

Indices

Bond screener

Market Watch

Morning Note

Thematic portfolio

Economic Calender

Market Journal

Money Talk

Market Call

Stock Research

Fund screener

Etf screener

Investment Seminars

FAQs

Markets Offered by POEMS

SGX

PSE

ASX

KRX

SET

BIST

HNX

HOSE

NYSE

HKX

IDX

LSE

TWSE

FWB

TSE

NYSE

NASDAQ

US Asian Hours

BURSA

China A Shares

China B Shares

Euronext Paris

Euronext Lisbon

Euronext Amsterdam

    Read the Latest Market Journal

    Singapore Catalist Board IPOs Outperform Mainboard; US Mega-Cap Strategy Favours Short-Term Trading

    Published on Jul 23, 2026 16 

    Singapore IPO Performance Reveals a Market Divide Recent analysis of Singapore's initial public offering (IPO) landscape reveals a stark performance disparity between the Mainboard and Catalist Board listings, with significant implications for investors seeking exposure to newly listed companies. Singapore Mainboard IPOs have delivered disappointing results, generating an average first-day return of -2%. This lacklustre performance is further highlighted by the fact that only one-third of IPOs managed to close above their IPO price on their debut trading day. Catalist Board Emerges as the Superior Option In contrast, Singapore's Catalist Board listings present a markedly different proposition for investors. These smaller-cap offerings have delivered reliable double-digit gains on their opening day, averaging an impressive 19.8%. The sustained post-listing gains further enhance the risk-reward profile for short-term IPO speculation. The Catalist Board's average performance across various timeframes demonstrates consistent strength, with 50.5% returns after one week, 54.3% after one month, 88.3% after three months, and 114.4% after six months. US IPO Strategy Recommendations For major US IPOs, the optimal approach differs significantly from the strategies used in Singapore. Large US offerings typically generate strong opening day momentum, averaging gains of 16%. However, the recommended strategy involves riding the initial one-week to one-month momentum wave before exiting positions ahead of lock-up expirations. Importantly, historical data suggests that buying and holding mega-cap IPOs through their first year has proven to be a value-destructive proposition, making timing crucial for US IPO investments. The analysis indicates that traders seeking short-term IPO speculation should favour Singapore's Catalist Board offerings over Mainboard listings, whilst US IPO strategies should focus on capturing initial momentum rather than long-term holding. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    Singapore Banking Sector Upgraded to ACCUMULATE on Rising Loan Growth and Rate Stabilisation

    Published on Jul 22, 2026 41 

    Company Overview This analysis covers Singapore's major banking sector, focusing on the three primary banks: DBS, OCBC, and UOB. These institutions represent the core of Singapore's financial services landscape, serving both domestic and regional markets whilst benefiting from the city-state's position as a financial hub. Upgrade to ACCUMULATE Rating Phillip Securities Research has upgraded the Singapore banking sector to ACCUMULATE from Neutral, driven by accelerating loan growth, stabilising interest rates, and improved market conditions. The research house has raised target prices across all three major banks: DBS to S$76.00 from S$67.50, OCBC to S$28.50 from S$24.00, and UOB to S$43.00 from S$39.00, reflecting higher loan growth and earnings estimates. Interest Rate Environment Stabilising Singapore's 3-month SORA rose for the second consecutive month, increasing 1 basis point month-on-month to 1.07% in June. This represents the smallest year-on-year decline in 15 months at 109 basis points, suggesting that rates are beginning to bottom out. The stabilisation reflects the Federal Reserve's increasingly hawkish stance, with June projections signalling a possible rate hike and no cuts anticipated, creating a supportive backdrop for net interest margins. Strong Loan Growth and Deposit Trends Singapore loan growth continued its surge at 8.7% year-on-year, potentially leading to upward revisions to previous guidance to low- to mid-single digit growth. Current account and savings account (CASA) deposits rose 15% year-on-year, with the CASA deposits ratio improving to 20.7% from 20.5% in April, reaching the highest level since November 2022. This trend provides a tailwind for banks by lowering funding costs and cushioning net interest margin compression. Market Volatility Benefits Ongoing geopolitical tensions, including the collapsed US-Iran ceasefire and renewed strikes lifting oil prices, continue to generate market volatility. This environment benefits capital markets income and wealth management fees, providing meaningful offsets to net interest income headwinds. The sector offers attractive dividend yields of 4.1%, with ongoing share buybacks improving return on equity. DBS is preferred for its fixed dividend policy and guidance upgrade, whilst OCBC is favoured for wealth management growth and excess capital. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    Q & M Dental Group Expands Asia-Pacific Presence with Major Acquisitions, Maintains BUY Rating and S$0.71 Target Price

    Published on Jul 22, 2026 17 

    Strategic Acquisitions Drive Growth Q & M Dental Group Ltd has announced significant expansion plans through two major acquisitions that will substantially increase its regional footprint. The Singapore-based dental services provider is acquiring a 100% stake in Australia's Experteeth Dental Group and a 51% stake in Thailand's Deezy Dental Home for approximately S$107 million and S$39 million respectively. Company Profile Q & M Dental Group operates as a comprehensive dental services provider across the Asia-Pacific region. The company has established itself as a regional healthcare player in the healthcare sector, focusing on dental care services and clinic operations across multiple markets. Acquisition Details and Financing Structure The combined S$146 million purchase will be financed through S$92 million in cash and the issuance of 86.7 million new shares, representing 9.1% of existing shares. The new shares are priced at S$0.70 each and will be subject to a 15-year moratorium, ensuring long-term commitment from the vendors. The Australian acquisition targets Experteeth Dental Group, founded in 2017, which operates 40 dental clinics with 117 dentists across New South Wales, Victoria, Queensland, Tasmania, and the Australian Capital Territory. The group operates under multiple established brands including Elevate Dental Group, Lumiere Dental Group, Ace Dental Group, Yiruda Dental Group, Prestige Dental Group, and Bubble Teeth Dental Group. The Thai acquisition involves Deezy Dental Home, also founded in 2017, which operates three dental clinics with 41 dentists. Strong Financial Backing and Growth Prospects The acquisitions are valued at an attractive price-to-earnings ratio of 11.4 times, with the Australian operation at 10 times and the Thai operation at 16 times. Importantly, the total S$146 million investment is supported by robust profit guarantees totalling S$126 million over six to eight years. This arrangement implies earnings growth of approximately 13%, with Thailand showing the highest growth potential at 22% compound annual growth rate. Analyst Outlook Phillip Securities Research maintains a positive outlook on these acquisitions, projecting that they could increase FY26 earnings per share by 1.04 cents, representing a 54% increase to 2.96 cents, excluding intangible amortisation. The research house maintains its BUY recommendation with an unchanged target price of S$0.71, based on price-to-earnings ratio of 25 times for FY26, aligned with Singapore's healthcare sector valuation. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    Semiconductor Sector Sustains Strong Growth Momentum with Accelerating Revenue Expansion

    Published on Jul 17, 2026 93 

    Sector Performance Driven by Memory Boom and AI Infrastructure Demand The semiconductor sector continues to demonstrate robust growth momentum, with the Semiconductor ETF surging 39.9% over the past three months, significantly outperforming the S&P 500's 11.4% gain. Memory companies have emerged as the standout performers, posting exceptional gains of 95% driven by extraordinary first-quarter 2026 earnings growth exceeding 900% year-on-year. This remarkable performance stems from a substantial surge in DRAM and NAND prices amid widespread memory chip shortages. Extended Supply Contracts Signal Long-Term Industry Stability A notable shift in industry dynamics has emerged through the establishment of longer-term supply agreements. Hyperscalers and high-end chipmakers are now committing to multi-year contracts extending until 2030, representing a significant departure from previous agreements that typically lasted only one year with flexible financing terms. These new arrangements require approximately 20% cash deposits to secure supply, demonstrating the critical importance of memory chips in AI data centre buildouts. Equipment manufacturers report that these extended memory contracts provide enhanced supply chain visibility extending through the end of 2027. Processor Segment Shows Accelerating Growth Trajectory The processor segment continues its growth acceleration, with first-quarter 2026 revenue surging 53% year-on-year, up from 40% growth in the fourth quarter of 2025. This momentum is expected to continue, with second-quarter 2026 revenue guidance indicating a substantial 67% year-on-year increase to US$159 billion. The growth is underpinned by robust hyperscaler demand for data centre GPUs, CPUs, and ASICs. NVIDIA leads the sector with first-quarter revenue spiking 85% year-on-year to US$81.6 billion, marking the third consecutive quarter of accelerating growth. AMD demonstrated its strongest year-on-year growth since 2022, with revenue increasing 38% to US$10.3 billion, driven by MI350 GPU and fifth-generation EPYC CPU adoption. Broadcom achieved its strongest growth since 2016, with revenue rising 48% year-on-year to US$22.2 billion, supported by AI semiconductor revenue that grew 143% year-on-year to a record US$10.8 billion. The sector maintains strong forward momentum, supported by hyperscalers' combined 2026 capital expenditure guidance of US$710 billion, representing an 89% year-on-year increase. Equipment players continue to benefit from strong services demand as memory customers seek performance upgrades on existing tools due to limited cleanroom space. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    Singapore Airlines Benefits from Fuel Hedging Amid Jet Fuel Volatility, Maintains Market Position

    Published on Jul 14, 2026 109 

    Aviation Sector Performance and Fuel Dynamics Singapore's aviation sector delivered steady performance in June 2026, with SATS leading gains at 14.2%, followed by Singapore Airlines at 11.6% and SIA Engineering at 7.3%. Meanwhile, CAO declined 1.1%. The sector continues to navigate volatile jet fuel markets, with Singapore jet fuel prices currently trading at US$115 per barrel, down significantly from the March 2026 peak of US$240.5 per barrel following a US-Iran peace deal that reduced prices by approximately 50%. Singapore Airlines' Strategic Positioning Singapore Airlines has demonstrated resilience through its comprehensive hedging strategy and operational adaptability. The carrier maintains a dual hedge structure covering both Brent crude and jet fuel, with 35% hedging on jet fuel and 14% on Brent crude for the second quarter of FY2026/27. This positioning has provided relative insulation from fuel price volatility compared to unhedged competitors. The airline has capitalised on several market opportunities, including rerouted demand for Asia-Europe flights stopping over in Singapore due to regional conflicts. Additionally, Singapore Airlines benefits from rising cargo yields, with global freight rates increasing 41% year-on-year to US$3.40 per kilogram. The company's budget subsidiary, Scoot, has captured demand from regional low-cost carriers that grounded aircraft during the conflict period. Market Outlook and Competitive Landscape Despite current price reductions, jet fuel remains approximately 33% above the 2025 averages of US$90 per barrel. Regional carriers show varying degrees of hedging protection, with Singapore Airlines, Cathay Pacific, Japan Airlines, and ANA maintaining stronger hedged positions. Conversely, China's Big Three airlines—Air China, China Southern, and China Eastern—remain largely unhedged and face greater exposure to fuel price fluctuations. The cargo segment presents additional opportunities, as the partial grounding of Middle East airlines has removed significant capacity from India-Europe and China/Southeast Asia-Europe routes. This capacity reduction has pushed Asia-Europe spot rates to US$5.26 per kilogram in late June, representing a 38% year-on-year increase. While Singapore Airlines' cargo revenue exposure of 11% makes it a secondary beneficiary compared to carriers with higher cargo proportions, the company still stands to benefit from elevated rates. Analysts maintain a neutral stance on air transportation, given uncertain resolution of geopolitical conflicts and the potential for renewed fuel price volatility if ceasefires break down. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    Gold in 2026: Why Analysts Believe the Rally May Continue

    Published on Jul 10, 2026 648 

    Gold has emerged as one of the strongest-performing major asset classes, attracting investors seeking portfolio diversification and protection against economic uncertainty. After delivering exceptional returns in 2025, many market analysts continue to see upside potential for gold in 2026. Gold at a Glance Metric Value Spot Gold Price (11 June 2026) US$4,073/oz 2026 Peak Price US$5,595/oz J.P. Morgan Bull Case Target US$6,300/oz 2025 Return +60% These figures illustrate why gold remains one of the most discussed asset classes among investors. Ways to Invest in Gold Investors can gain exposure to gold through several investment vehicles, each offering different benefits and risks. Investment Type Suitable For Key Benefits Physical Gold Long-term holders Direct ownership Gold ETFs Most retail investors Low cost, easy trading Mining Stocks Growth investors Potentially higher returns Futures & CFDs Experienced traders Leveraged exposure Why Many Investors Prefer Gold ETFs Gold ETFs have become one of the easiest ways to invest in gold because they offer exposure to the price of gold without the need to buy, store, or insure physical bullion. The infographic compares US-listed Gold ETFs and highlights their management fees and fund sizes. The Investment Case for Gold Gold has historically been viewed as both a defensive asset and a portfolio diversifier. During periods of inflation, geopolitical uncertainty, or financial market volatility, investors often increase their allocations to gold. Why Investors Consider Gold Acts as a hedge against inflation Diversifies investment portfolios Preserves purchasing power over time Can perform well during market uncertainty Offers high global liquidity Should You Buy Physical Gold or Gold ETFs? For most retail investors, Gold ETFs offer several advantages: Feature Physical Gold Gold ETF Storage Required Yes No Easy to Trade Limited Yes Brokerage Account No Yes Liquidity Moderate High Ongoing Costs Storage & Insurance Management Fee Frequently Asked Questions [market_journal_faq]   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    Singapore Equities Show Strong Momentum as AI Cycle Drives Growth, Banks and Semiconductors Favoured

    Published on Jul 6, 2026 274 

    Market Performance and Outlook Singapore equities have demonstrated robust performance, posting their fourth consecutive quarter of gains with a 5.8% rise in 2Q26. The market reached record highs on 25th June and was up 11.3% for the first half of 2026. The ceasefire in the Middle East has particularly benefited transportation stocks, whilst increased volatility supported exchanges and banking shares. Expectations of bottoming interest rates have further rallied banking stocks, though energy-related equities have faced pressure from sluggish oil and gas capital expenditure and falling energy prices. AI Investment Cycle: Booming Not Bubbling Phillip Securities Research maintains that current market conditions do not constitute an AI bubble. The firm identifies several key factors supporting this view. Massive AI and data centre capital expenditure by hyperscalers, including Oracle and Meta, is expected to rise 73% in 2026 and 22% in 2027, cascading into substantial semiconductor purchases with billings rising 86% year-to-date to reach an annualised US$1 trillion . Wafer fabrication capital expenditure is projected to jump 40% year-on-year to US$175 billion. The driving force behind this spending stems from frontier AI models, particularly Anthropic and OpenAI, whose combined revenue could total US$85 billion this year. Under an S-curve growth trajectory, revenue is expected to reach US$300 billion by 2030, justifying the capital expenditure spike. Current technology sector valuations remain significantly below dot-com bubble levels, with Nvidia trading at 24 times price-to-earnings compared to Cisco's peak of 150 times forward price-to-earnings in 2000. Investment Strategy and Sector Preferences The research house favours banks, semiconductors, building materials, power, and higher-yielding REITs. Banking stocks benefit from resilient dividend yields of around 4% and loan growth surging towards 8% year-on-year, a four-year high. A major spike in deposits following the Middle East conflict, with March recording a S$66 billion jump compared to the prior five-year monthly average of S$9 billion , should help lower funding costs. Semiconductor stocks are expected to register the fastest growth, fuelled by record demand from key equipment customers including ASML, Applied Materials, and Lam Research. In construction, whilst order momentum has slowed, activity has increased, supporting a 29% rise in ready-mixed concrete demand. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    ETF Monthly Outlook: Sideways Consolidation Expected Across Most Asset Classes in July 2026

    Published on Jul 6, 2026 111 

    Market Overview and Performance Summary The ETF market landscape presents a mixed picture heading into July 2026, with most major asset classes expected to enter periods of sideways consolidation following varied performance in June. According to the latest monthly analysis, investors should prepare for range-bound trading across several key exchange-traded funds tracking major indices and commodities. Asset Class Performance Analysis Equities showed divergent trends during June, with the Vanguard S&P 500 ETF (VOO) ending two consecutive months of gains with a 0.9% decline. The fund is expected to extend its sideways consolidation from June into July as markets digest recent moves. In contrast, Singapore equities demonstrated strength, with the SPDR Singapore Equities ETF (ES3) posting its third consecutive monthly gain of 3% in June, though analysts expect consolidation after the ETF reached target levels. Fixed income markets remained relatively stable, with the iShares 7-10 Year Treasury Bond ETF (IEF) trading flat during June. The bond ETF is anticipated to remain range-bound between US$93.40 and US$95.40 in July, extending a sideways consolidation pattern that has persisted since mid-March. Commodities faced significant headwinds, particularly in the precious metals sector. The SPDR Gold MiniShares Trust (GLDM) recorded its fourth consecutive monthly decline, tumbling 11.6% in June. Despite this weakness, analysts expect sideways consolidation in July, with support likely to hold at US$77.50 should the price retest the swing low from October 2025. Energy sector weakness continued, with the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) falling 5.4% in June, marking its third consecutive monthly decline. The ETF is expected to consolidate sideways in July, with support anticipated in the US$148 to US$154 area. Notable Underperformers The cryptocurrency space showed particular vulnerability, with the ProShares Bitcoin Strategy ETF (BITO) tumbling 20.2% in June, marking its second consecutive monthly decline. Unlike other asset classes, Bitcoin ETFs are expected to continue their bearish trend in July, potentially retesting the US$7.44 swing low from August 2024, representing a 6.7% downside from current levels. Asian markets also faced pressure, with the Hang Seng China Enterprises Index ETF (2828) declining 9.6% in June for its second consecutive monthly drop. However, sideways consolidation is expected, with support between HKD$74.65 and HKD$77.10. Frequently Asked Questions [market_journal_faq]   This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.   Disclaimer These commentaries are intended for general circulation and do not have regard to the specific investment objectives, financial situation and particular needs of any person. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of any person acting based on this information. You should seek advice from a financial adviser regarding the suitability of any investment product(s) mentioned herein, taking into account your specific investment objectives, financial situation or particular needs, before making a commitment to invest in such products. Opinions expressed in these commentaries are subject to change without notice. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of units in any fund and the income from them may fall as well as rise. Past performance figures as well as any projection or forecast used in these commentaries are not necessarily indicative of future or likely performance. Phillip Securities Pte Ltd (PSPL), its directors, connected persons or employees may from time to time have an interest in the financial instruments mentioned in these commentaries. The information contained in these commentaries has been obtained from public sources which PSPL has no reason to believe are unreliable and any analysis, forecasts, projections, expectations and opinions (collectively the “Research”) contained in these commentaries are based on such information and are expressions of belief only. PSPL has not verified this information and no representation or warranty, express or implied, is made that such information or Research is accurate, complete or verified or should be relied upon as such. Any such information or Research contained in these commentaries are subject to change, and PSPL shall not have any responsibility to maintain the information or Research made available or to supply any corrections, updates or releases in connection therewith. In no event will PSPL be liable for any special, indirect, incidental or consequential damages which may be incurred from the use of the information or Research made available, even if it has been advised of the possibility of such damages. The companies and their employees mentioned in these commentaries cannot be held liable for any errors, inaccuracies and/or omissions howsoever caused. Any opinion or advice herein is made on a general basis and is subject to change without notice. The information provided in these commentaries may contain optimistic statements regarding future events or future financial performance of countries, markets or companies. You must make your own financial assessment of the relevance, accuracy and adequacy of the information provided in these commentaries. Views and any strategies described in these commentaries may not be suitable for all investors. Opinions expressed herein may differ from the opinions expressed by other units of PSPL or its connected persons and associates. Any reference to or discussion of investment products or commodities in these commentaries is purely for illustrative purposes only and must not be construed as a recommendation, an offer or solicitation for the subscription, purchase or sale of the investment products or commodities mentioned. This advertisement has not been reviewed by the Monetary Authority of Singapore.

    Latest Videos

    Join Events & Seminars

    Learn best practices and latest market outlook from experts and special guests

    Hear & Ask our Experts

    Join live weekly market calls

    Read Popular News & Reports, Technical Pulses

    at www.stocksbnb.com

    Subscribe to our YouTube Channel

    New video every week

    Follow us

    Facebook Social Icon Instagram Icon Twitter Social Icon Youtube Social Icon

    IMPORTANT INFORMATION

    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  

     

    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com