Credit Default Swap (CDS)
A Credit Default Swap (CDS) is a financial derivative that allows investors to manage and transfer credit risk associated with debt instruments, such as bonds or loans. Essentially, it acts as a form of insurance against a borrower’s default, enabling one party to mitigate potential losses by shifting the risk to another party. Understanding CDSs is crucial for those involved in financial markets, as they play a significant role in risk management and investment strategies.
Table of Contents
What is a Credit Default Swap (CDS)?
A Credit Default Swap is a contractual agreement between two parties:
- Protection Buyer: This party seeks to hedge against the risk of a borrower defaulting on a debt obligation.
- Protection Seller: This party assumes the credit risk in exchange for periodic premium payments.
In this arrangement, the protection buyer makes regular payments to the protection seller. In return, the seller agrees to compensate the buyer if a specified credit event occurs, such as the default or bankruptcy of the underlying debt issuer, known as the reference entity. The debt instrument linked to this agreement is called the reference obligation.
Key Features of a CDS:
- Premium Payments: The protection buyer pays regular premiums to the protection seller, similar to insurance premiums.
- Credit Events: These predefined events trigger the CDS, including default, bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium, obligation restructuring, or government intervention.
- Settlement Methods: Upon a credit event, settlements can occur through:
- Physical Settlement: The protection buyer delivers the defaulted debt to the seller in exchange for its face value.
- Cash Settlement: The seller pays the buyer the difference between the debt’s face value and its market value after the credit event.
Understanding Credit Default Swaps (CDS)
Credit Default Swaps serve multiple purposes in financial markets:
- Hedging: Investors holding debt instruments can use CDSs to protect against potential losses from a borrower’s default.
- Speculation: Traders can speculate on entities’ creditworthiness by buying or selling CDS contracts without necessarily owning the underlying debt.
- Arbitrage: Investors may exploit price discrepancies between CDS spreads and bond yields to achieve risk-free profits.
Mechanics of a CDS:
- Initiation: Two parties enter a CDS contract, specifying the reference entity, reference obligation, notional amount, premium payments, credit events, and settlement method.
- Premium Payments: The protection buyer pays periodic premiums to the protection seller over the contract’s term.
- Credit Event Occurrence: The CDS is triggered if a predefined credit event occurs.
- Settlement: Depending on the agreed method:
- Physical Settlement: The buyer delivers the defaulted debt to the seller and receives the notional amount.
- Cash Settlement: The seller pays the buyer the difference between the debt’s face value and current market value.
Types of Credit Default Swaps (CDS)
CDSs are versatile instruments that come in various forms to cater to different needs:
- Single-Name CDS: Protects against the default of a specific reference entity.
- Index CDS: Covers a portfolio or basket of entities, such as corporate bonds or sovereign debts, offering diversified exposure.
- Tranche CDS: This type of CDS pertains to specific segments or tranches of credit risk within a collateralised debt obligation (CDO), allowing targeted risk management.
- Loan CDS: Targets syndicated secured loans, offering protection against defaults in loan portfolios.
- Sovereign CDS: Protects against the default of sovereign nations on their debt obligations.
Risk Management and Hedging Using CDS
Credit Default Swaps are pivotal tools for risk management in the financial sector:
Risk Mitigation:
- Hedging: Investors use CDSs to protect against potential losses from defaults on bonds or loans they hold. For instance, a bank holding significant corporate bonds might purchase CDSs to hedge against the risk of those corporations defaulting.
Speculation:
- Credit Quality Betting: Traders can speculate on an entity’s creditworthiness by buying or selling CDS contracts. If they anticipate a deterioration in credit quality, they might buy a CDS, expecting its value to increase.
Arbitrage Opportunities:
- Price Discrepancies: Investors exploit differences between CDS spreads and bond yields to achieve risk-free profits. For example, if a bond’s yield doesn’t align with its CDS spread, arbitrageurs can execute trades to profit from the mispricing.
Risk Considerations:
- Counterparty Risk: The protection seller may default on their obligation, leaving the buyer unprotected.
- Market Risk: Fluctuations in the market value of CDS contracts due to changes in credit spreads or economic conditions.
- Liquidity Risk: The risk that a CDS contract cannot be sold or unwound easily without significant loss in value.
- Systemic Risk: Excessive CDS use can contribute to broader financial instability, as witnessed during the 2008 financial crisis.
Examples of Credit Default Swaps (CDS)
U.S. Debt Ceiling Concerns (2024):
In late 2024, discussions around the U.S. debt ceiling intensified, leading to increased market scrutiny. The possibility of a “Red Sweep,” where a single party controls both the executive and legislative branches, was anticipated to expedite decisions regarding the debt ceiling. Such political dynamics can influence investor perceptions of U.S. creditworthiness, potentially impacting CDS spreads associated with U.S. government debt.
Corporate CDS Spreads Amid Inflation (2024):
During periods of high inflation in 2024, certain U.S. companies demonstrated resilience, reflected in their CDS spreads. Notably, 117 companies within the S&P 500 had lower CDS spreads than the U.S. government, indicating strong investor confidence in their financial health. This trend underscores how individual corporate credit risk can be perceived as lower than sovereign risk under specific economic conditions.
Frequently Asked Questions
A Credit Default Swap is a financial contract in which the buyer pays premiums and the seller compensates upon a predefined credit event.
The primary purposes of a CDS are:
- Hedging: To protect investors against potential losses from a borrower’s default.
- Speculation: To allow traders to bet on an entity’s creditworthiness changes.
- Arbitrage: To exploit pricing inefficiencies between bond yields and CDS spreads.
Key participants include:
- Banks and Financial Institutions: Engage in CDS for hedging and trading purposes.
- Hedge Funds: Utilise CDS for speculative strategies.
- Insurance Companies: Act as protection sellers, assuming credit risk.
- Corporations: Use CDS to manage credit exposure related to their operations.
While both CDS and traditional insurance involve risk transfer, they differ in several ways:
- Regulation: CDSs are financial derivatives, not regulated like traditional insurance products.
- Ownership of Underlying Asset: CDS buyers do not need to own the underlying debt instrument, whereas insurance typically requires an insurable interest.
- Payout Triggers: CDS payouts are triggered by specific credit events, whereas insurance claims require proof of loss.
The CDS spread, representing the cost of protection, is influenced by:
- Creditworthiness of the Reference Entity: Higher perceived risk leads to wider spreads.
- Economic Conditions: Economic downturns can increase spreads due to heightened default risk.
- Market Liquidity: Illiquid markets may result in higher spreads.
- Supply and Demand Dynamics: Increased demand for protection can widen spreads.
Related Terms
- Gamma Scalping
- Free-Float Methodology
- Flight to Quality
- Equity Carve-Outs
- Ladder Strategy
- Event-Driven Strategy
- Dividend Capture Strategy
- Company Fundamentals
- Buy And Hold Strategy
- Withdrawal Plan
- Basis Risk
- Barbell Strategy
- Risk budgeting
- Trading Strategy
- High-Yield Investment Programs
- Gamma Scalping
- Free-Float Methodology
- Flight to Quality
- Equity Carve-Outs
- Ladder Strategy
- Event-Driven Strategy
- Dividend Capture Strategy
- Company Fundamentals
- Buy And Hold Strategy
- Withdrawal Plan
- Basis Risk
- Barbell Strategy
- Risk budgeting
- Trading Strategy
- High-Yield Investment Programs
- Risk Appetite
- Portfolio Diversification
- Closing Transaction
- Replication Strategy
- Correlation Coefficient
- Currency hedge
- Automatic Investment Plan
- Automatic Reinvestment
- Core-Satellite Strategy
- Overlay Strategy
- Long/Short Strategy
- Strategic Asset Allocation
- Tactical Asset Allocation
- Gearing
- Dividend stripping
- Resting Order
- Buy to opening
- Buy to Close
- Yield Pickup
- Contrarian Strategy
- Interpolation
- Intrapreneur
- Hyperledger composer
- Horizontal Integration
- Queueing Theory
- Homestead exemption
- The barbell strategy
- Retirement Planning
- Credit spreads
- Stress test
- Accrual accounting
- Growth options
- Growth Plan
- Advance Decline Line
- Accumulation Distribution Line
- Box Spread
- Charting
- Advance refunding
- Accelerated depreciation
- Amortisation
- Accrual strategy
- Hedged Tender
- Value investing
- Long-term investment strategy
Most Popular Terms
Other Terms
- Bond Convexity
- Compound Yield
- Brokerage Account
- Discretionary Accounts
- Industry Groups
- Growth Rate
- Green Bond Principles
- Funding Ratio
- Foreign Direct Investment (FDI)
- Floating Dividend Rate
- Real Return
- Protective Put
- Perpetual Bond
- Option Adjusted Spread (OAS)
- Non-Diversifiable Risk
- Merger Arbitrage
- Liability-Driven Investment (LDI)
- Income Bonds
- Guaranteed Investment Contract (GIC)
- Flash Crash
- Cost of Equity
- Cost Basis
- Deferred Annuity
- Cash-on-Cash Return
- Earning Surprise
- Capital Adequacy Ratio (CAR)
- Bubble
- Beta Risk
- Bear Spread
- Asset Play
- Accrued Market Discount
- Junk Status
- Intrinsic Value of Stock
- Interest-Only Bonds (IO)
- Interest Coverage Ratio
- Inflation Hedge
- Industry Groups
- Incremental Yield
- Industrial Bonds
- Income Statement
- Holding Period Return
- Historical Volatility (HV)
- Hedge Effectiveness
- Flat Yield Curve
- Fallen Angel
- Exotic Options
- Execution Risk
- Exchange-Traded Notes
- Eurodollar Bonds
- Enhanced Index Fund
Know More about
Tools/Educational Resources
Markets Offered by POEMS
Read the Latest Market Journal
Apple Launches First Foldable iPhone Amid Pricing and AI Challenges
Brief Overview Apple held its "Surprise and Shine" event on 9 September, launching several new products including its first foldable smartphone, the iPhone Duo. The iPhone Duo starts at US$1,999, whilst the iPhone 18 Pro and Pro Max received US$100 price increases to US$1,199 and US$1,299 respectively. Phillip Securities Research maintains a REDUCE recommendation with a raised target price of US$300, citing concerns over demand sustainability and AI execution despite expecting strong initial demand. Investment Positives The introduction of the iPhone Duo creates an entirely new price tier above the Pro Max, which should provide further support to iPhone average selling prices (ASPs). The analyst expects the new product lineup to generate strong initial demand, particularly for the iPhone Duo due to its novelty factor as Apple's first foldable smartphone. The pricing strategy across the range, including US$100 price increases for the iPhone 18 Pro and Pro Max models, is expected to strengthen the overall product mix. This has prompted the analyst to raise FY27e revenue and PATMI estimates by 1% and 2% respectively, reflecting the anticipated benefits of higher iPhone ASPs and an improved product mix following the iPhone Duo launch and Pro lineup price increases. Challenges The sustainability of demand at these increasingly premium price points remains untested and represents a key concern for the investment outlook. The analyst notes that AI remains the weaker component of Apple's investment story, with execution and adoption likely to determine whether Apple Intelligence becomes a meaningful driver of replacement cycles. Several near-term headwinds weigh on the company's prospects, including supply constraints, rising memory costs, and AI regulations. Significantly, there is currently no clear evidence that Apple Intelligence is meaningfully driving product upgrades, which undermines a key potential growth catalyst. Outlook The outlook remains complicated despite the exciting new foldable product launch. Whilst strong initial demand is expected, particularly for the innovative iPhone Duo, the combination of unproven demand sustainability at premium price points and weak AI positioning creates uncertainty. The success of the product launches will likely depend on consumer acceptance of higher pricing and the eventual effectiveness of Apple Intelligence in driving upgrade cycles. Recommendation & Target Price Phillip Securities Research maintains a REDUCE recommendation on Apple Inc. The DCF target price has been increased to US$300 from the previous US$290, based on higher expected iPhone ASPs and stronger product mix. The WACC of 6.5% and terminal growth rate of 3.5% remain unchanged. 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.
Beyond The Usual Markets: Discover Kazakhstan
A Closer Look At Kazakhstan As Kazakhstan gains popularity as a travel destination across Central Asia, attention is slowly shifting from tourism to opportunity. What many don’t realise is that the same country attracting visitors today is also offering high-yield, under-owned investment opportunities that global markets have yet to fully price in. Most investors today are crowded into the same trades — US tech, India growth, or China recovery. But some of the most compelling opportunities are often found where few are looking. Kazakhstan is one of those markets. It is not a headline market. It is not widely covered. But that’s exactly where its opportunity lies. This article breaks down why Kazakhstan deserves a place in your portfolio — and how you can actually invest in it. Why Kazakhstan, And Why Now? Kazakhstan is the world's ninth-largest country by area, the world's largest uranium producer, and a top-ten oil exporter. Its stock exchange, Kazakhstan Stock Exchange (KASE), has quietly delivered 40% returns over the past 12 months, beating most developed and emerging markets. Yet non-residents account for just 8.3% of trading volume. The institutional wave has not arrived yet. We believe this represents a genuine early-mover window. The Astana International Financial Centre (AIFC), modelled on Dubai's DIFC and backed by a 2026–2028 strategy to attract sovereign wealth funds and global pension capital, has already channelled $21.5 billion in structured investment since inception, including $7.2 billion in 2025 alone. The infrastructure is being built to handle institutional money at scale. The question is whether your portfolio is positioned before that happens. Four Reasons This Market Stands Out The Tax Advantage: Plain And Simple Kazakhstan's tax regime for foreign investors in listed equities is one of the most favourable we have seen in any comparable market. Here is what matters most when investing through our platform. Dividends — 0% Withholding Tax (WHT) Shares that are actively traded on KASE (meeting monthly volume and transaction thresholds) qualify for a full withholding tax exemption on dividends for foreign investors. You may confirm your status with our Global Markets Desk before each position. Capital Gains — 0% For Individuals Non-resident individuals pay zero tax on capital gains from shares traded on the open market via KASE. For legal entities, gains are exempt after a 3-year holding period in non-subsoil-user companies. 53 Double-Tax Treaties Kazakhstan's double tax treaty (DTT) network covers Singapore, the US, UK, Germany, and most EU states. Investors from treaty countries benefit from further protection and potential rate reductions on non-exempt income. Tax-related information provided is for general guidance only. Please consult your tax advisor for confirmation and clarification. Five Stocks To Start With These five names represent the most liquid, transparent, and well-covered companies on KASE across five distinct sectors. Each was chosen for accessibility and suitability for investors new to the market. Risks To Keep In Mind Tenge Depreciation KZT forecast at 600–610 per USD by end-2026. At HSBK's 13% yield, the income more than offsets expected FX drag. For capital-focused positions (AIRA, KMGZ), the buffer is thinner. Oil Price Sensitivity Kazakhstan remains highly sensitive to oil prices, with crude strength supporting fiscal revenues, the tenge and KMGZ earnings. With Brent currently above USD 100/barrel, the oil-price backdrop is supportive of Kazakhstan’s macro outlook and energy sector profitability. However, a sustained reversal in crude prices would remain a key downside risk given the economy’s continued reliance on hydrocarbons. Liquidity And Order Depth Outside HSBK and KMGZ, order books can be thin. Always use limit orders on KZTO, KCEL, AIRA, and ASBN. Do not place market orders on mid-cap names — you risk moving the price against yourself before the order fills. Trade Kazakhstan With POEMS Kazakhstan-listed shares are now available for online trading through POEMS. Trading Hours (SGT) Pre-Opening Session 2:20PM – 2:30PM Main Continuous Session 2:30PM – 8:30PM For more information, visit POEMS or contact our Global Markets Desk at talktoglobalmarkets@phillip.com.sg. Make Kazakhstan Part Of Your Global Market View Explore Kazakhstan on POEMS and discover opportunities across KASE. Trade Kazakhstan Open An Account Now! DisclaimerDisclaimer 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.
Keppel DC REIT Strengthens Japan Expansion with Major Tokyo Data Centre Acquisition
Brief Overview Keppel DC REIT (KDCREIT) has agreed to jointly acquire a 90% effective interest in two hyperscale data centres in Greater Tokyo for JPY190 billion (S$1,549 million). The acquisition is expected to be 2.6% accretive to FY25 pro-forma distribution per unit (DPU) and will significantly deepen the REIT's Japan presence. The properties offer contractual rent escalation of 2.8% per annum and are under-rented by at least 30%. Investment Positives The acquisition presents multiple compelling growth drivers for long-term income expansion. Tokyo Data Centre 4 and 5 are freehold colocation facilities that are 100% occupied by four investment-grade clients, providing strong tenant quality and full occupancy rates. The properties offer a balanced risk-return profile with a blended weighted average lease expiry (WALE) of 8.3 years, combining reversion opportunities with long-term income visibility. The deal provides substantial embedded rental upside potential, with in-place rents under-rented by at least 30% and contracted average annual rent escalation of approximately 2.8%. More than 5% of rents are due for renewal by 2029, creating near-term reversion opportunities. The acquisition was secured at a 2.1% discount to the properties' valuation of JPY194 billion, representing attractive pricing. Strategically, the acquisition strengthens KDCREIT's position in one of Asia Pacific's most attractive data centre markets. Japan's contribution to portfolio rental income will increase significantly from approximately 9% as at 30 June 2026 to approximately 23% post-acquisition. The properties are located in Inzai City, one of Japan's most established hyperscale data centre clusters. Japan's market fundamentals support long-term growth prospects, underpinned by rising cloud adoption, AI-related deployments and digital transformation. Structural supply constraints, including power constraints, construction bottlenecks and land scarcity, should further enhance the market's growth potential. Investment Negatives The acquisition will increase aggregate leverage from 34% to 38%, representing a meaningful increase in the REIT's debt levels. The financing structure requires a substantial private placement to raise at least S$600 million, which will increase the unit base by approximately 12%, creating dilution for existing unitholders. The acquisition is scheduled to complete in 4Q26, meaning investors will need to wait for the benefits to materialise. Outlook The transaction combines immediate DPU accretion with multiple avenues for long-term income growth. Japan's favourable demand-supply dynamics should support continued growth, while the portfolio's asset under management is expected to grow to S$7.6 billion from S$6.3 billion. Recommendation & Target Price Phillip Securities Research maintains an ACCUMULATE recommendation with an unchanged target price of S$2.46. The analysts have yet to update their financials for the acquisition and private placement but remain positive on the deal's strategic value and accretive nature. 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.
Geo Energy Resources Ltd – De-risked, ready to rumble
Brief Overview Geo Energy Resources delivered 1H26 results within expectations, with revenue and net profit representing 36% and 37% respectively of full-year forecasts. The company's US$190 million integrated infrastructure project has been completed and operational since July, whilst production declined 42% year-on-year to 3.8 million tonnes as operations shift to the new infrastructure. The sales target for FY26 remains unchanged at 11.5-12.5 million tonnes. Investment Positives The completion and operational status of Geo's integrated infrastructure represents a significant milestone for the company. The 92-kilometre hauling road and jetty facility, held through 69.9% subsidiary Marga Bara Jaya (MBJ), has a substantial capacity of 25 million tonnes and went live operationally in July. This development is expected to drive meaningful production improvements, with Geo anticipated to transport 4 million tonnes of coal through MBJ in 2H26, rising to 11 million tonnes in FY27. The infrastructure's excess capacity creates additional revenue streams through toll and jetty fees supported by multi-year contracts. Production capabilities are set to enhance further as 2x70MT trucks arrive in September to replace the current 40MT fleet, supporting operational ramp-up. Looking ahead to FY27, analysts forecast production to surge 40% to 17 million tonnes whilst cash costs are expected to decline. The coal price environment also provides tailwinds, with prices up 53% year-on-year in 3Q26. Gross margins improved to 18.9% from 15.6% previously, supported by a 16.5% rise in average selling prices to US$529 per tonne. Investment Negatives The primary concern centres on the significant production decline in 1H26, where output fell 42% year-on-year to 3.8 million tonnes. This reduction stems from deliberate delays in TRA production ramp-up as the company transitions coal transportation from the existing Atlas road to its proprietary MBJ infrastructure. Additionally, TBR pit boundary expansion due to high wall pushback contributed to operational disruptions, with TBR production dropping 51% to 2 million tonnes. Cash costs increased 12.5% to US$40.6 per tonne, attributed to higher fuel prices, which pressured operational margins during the transition period. Outlook With the integrated infrastructure now operational, Geo's earnings visibility has been substantially de-risked. FY27 represents a milestone year with forecast production growth of 40% and declining cash costs, supported by infrastructure fee income from multi-year contracts and favourable coal price trends. Recommendation & Target Price Phillip Securities Research maintains a BUY recommendation with an unchanged DCF target price of S$0.75. The FY26 earnings forecast remains unchanged following the results. 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.
NVIDIA Corporation – Strong Growth Driven by AI Infrastructure Demand
Brief Overview NVIDIA delivered 2Q27 results within expectations, with data centre revenue surging 117% year-on-year to US$89bn. The company guided FY28e revenue growth of about 70% year-on-year, though this is constrained by supply factors. Phillip Securities Research maintains a BUY rating with a raised target price of US$300. Investment Positives Hyperscale revenue showed significant acceleration in 2Q27, growing 102% year-on-year to US$48.7bn, compared to 93% growth in 1Q27. This acceleration was driven by hyperscalers increasing capital expenditure spending on GPU capacity, particularly for Blackwell Ultra. The top four hyperscalers - Google, Amazon, Microsoft, and Meta - increased their 2026e capital expenditure guidance by 5% this quarter to US$748bn, representing 97% year-on-year growth. NVIDIA expects their total capital expenditure to reach US$1.3tn in 2027e, reflecting 74% year-on-year growth. Amazon is deploying an additional 2 million of NVIDIA's GPUs until 2Q29e, whilst Microsoft announced plans to modernise its infrastructure with NVIDIA's Vera Rubin, which commenced shipments in August. The AI Clouds, Industrial & Enterprise (ACIE) segment recorded the fastest growth, with 2Q27 revenue spiking 138% year-on-year, overtaking hyperscale growth rates. This growth was supported by significant contract wins, including AI startups Reflection and Cohere signing multi-year contracts worth US$1bn or more with Nebius for AI workloads running on NVIDIA-powered infrastructure. Sovereign AI revenue more than tripled year-on-year, with substantial partnerships announced. NVIDIA partnered with Noetra, Japan's national AI company, to deploy 13,750 Vera CPUs and 27,500 Rubin GPUs delivering 140MW of AI compute for physical AI. South Korea committed to invest at least US$3bn for NVIDIA and Hyundai to deploy 50,000 Blackwell GPUs for AI model training and deployment. Investment Negatives The report indicates that rising memory costs present a headwind to NVIDIA's margins, which prompted the analyst to raise the weighted average cost of capital to 8.4% from 7.9%. Supply constraints including land, power, shell, and cooling are limiting NVIDIA's revenue growth potential. Without these constraints, demand could grow more than 100% in FY28e, compared to the guided 70% growth. Outlook Global semiconductor spending surged 108% year-on-year in 1H2026 to US$675bn, driven by hyperscaler, enterprise, and sovereign nations' AI buildout. The analyst raised FY27e revenue and PATMI forecasts by 11% due to stronger expected growth from the ACIE segment and rapid Vera Rubin ramp in 2H27e. Recommendation & Target Price Phillip Securities Research maintains a BUY recommendation with a raised target price of US$300, increased from the previous US$285. NVIDIA trades at a FY27e price-to-earnings ratio of 24x, representing a 32% discount to peers' average of 35x. 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.
Salesforce Inc – The End of the SaaSpocalypse
Brief Overview Salesforce delivered mixed second quarter results with revenue meeting expectations but profit after tax and minority interest (PATMI) lagging due to higher research and development and sales & marketing spending. The company is positioning itself as the enterprise AI data layer through Headless and Claudeforce initiatives, extending CRM data into platforms like Claude, Slack and Teams. Management anticipates second half growth driven by premium AI products and usage-based monetisation, with significant growth potential as only 5% of users currently use higher-tier editions. Investment Positives The core Sales and Service Cloud divisions continue to demonstrate resilience as revenue anchors. Revenue increased 11% year-on-year to US$11.3 billion, maintaining consistent growth momentum from the previous quarter's 10% increase. The sales division faces minimal AI disruption since monetisation primarily occurs through upselling existing Salesforce offerings. Customer retention metrics remain exceptionally strong with attrition near record lows, whilst Sales, Service and Slack all delivered seat growth. Existing customers are actively upgrading through premium AI-enabled bundles, particularly Agentforce 1 Edition for premium Sales and Service Cloud. Agentforce application bookings have also more than doubled quarter-on-quarter, whilst premium Slack upgrades tripled following Slackbot's March 2026 launch. The agentic AI momentum continues to accelerate significantly. Agentforce annual recurring revenue exceeded US$1.5 billion, representing approximately 3.3% of FY27 revenue guidance midpoint and marking growth of more than 240% year-on-year. The consumption-based pricing model encourages rapid customer adoption, with Agentforce bookings doubling quarter-on-quarter. Notably, 50% of new bookings came from existing customers purchasing additional credits after initial deployment. Growth products including Agentforce, Headless and Data 360 collectively reached nearly US$3.9 billion in annual recurring revenue. Salesforce benefits from owning crucial customer data, workflows, permissions and governance layers that support data quality, whilst customers increasingly prefer AI embedded within existing software rather than managing complex internal AI systems. Investment Negatives The report identifies higher research and development, marketing and sales expenses as factors contributing to lower-than-expected earnings performance. These increased operational costs resulted in PATMI lagging behind revenue performance during the quarter. Outlook Management expects second half growth to be driven by premium AI products including Agentforce, Slackbot and Claudeforce, alongside usage-based monetisation and customer upgrades. The growth runway remains substantial given that only 5% of users currently utilise higher-tier editions. Recommendation & Target Price Phillip Securities Research maintains a NEUTRAL recommendation whilst raising the DCF target price to US$243 from the previous US$166. The analysts increased their terminal growth rate from 3% to 5.5%, reflecting improved market confidence in Salesforce's core CRM business, the Anthropic Claudeforce partnership, and stronger software sector sentiment as enterprise AI monetisation gains traction. 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.
Thomson Medical Group Ltd Shows Turnaround Progress Despite Volume Challenges
Brief Overview Thomson Medical Group delivered FY26 results largely in line with expectations, with revenue and EBITDA meeting 97% and 98% of forecasts respectively. The company experienced earnings recovery across all three operating countries - Singapore, Malaysia, and Vietnam - with EBITDA expanding 21% year-on-year in the second half to S$43.6mn. Growing revenue intensity has driven earnings improvements, though currency headwinds affected results. Investment Positives The primary positive driver for Thomson Medical has been the significant growth in average bill size across all three operating markets. Singapore recorded the largest increase in average bill size at 421.8%, driven by a combination of increased case complexity and a higher product mix as procedures were shifted to outpatient day surgery. Malaysia also benefited from improved revenue intensity, with average bill size growing 111.9%. This improvement was supported by oncology and gastroenterology cases, alongside the return of some insurance payers. The Malaysian operations saw EBITDA expand 34.6% as the business rebuilds its insurance relationships. Vietnam demonstrated strong operational momentum with inpatient volumes increasing 46.5% and average bill size growing 2.1%. The Vietnamese operations benefited from higher volumes including robotic surgery procedures and increased capacity, resulting in EBITDA growth of 52.4%. The group's strategic pivot away from Singapore's historical reliance on obstetrics and gynaecology cases is showing results, with the addition of more orthopaedics, ENT and general surgery procedures improving the revenue mix. Investment Negatives The key challenge facing Thomson Medical is declining volumes across the group. Total inpatient volumes fell 7.8% year-on-year to 39,000 patients in FY26. Singapore experienced a 9% decline in inpatient volumes, primarily due to lower delivery cases in obstetrics. Malaysia recorded an 11.5% drop in inpatient volumes, which the analyst attributes to the absence of insurance payers. Finance costs continue to weigh on earnings despite a 16.5% reduction due to lower interest rates. The company also recorded a S$15.2mn goodwill impairment due to a higher discount rate assumption. Outlook The analyst views Thomson Medical as successfully executing its operational turnaround strategy. The company is effectively diversifying Singapore away from obstetrics cases whilst Malaysia rebuilds its insurance partnerships with foreign patients and oncology leading increased revenue intensity. However, finance costs remain a burden on earnings performance. Recommendation & Target Price Phillip Securities Research has upgraded Thomson Medical to BUY due to recent share price performance. The target price remains unchanged at S$0.071 using a sum-of-the-parts valuation approach. The analyst maintained FY27e earnings forecasts while rolling over valuations to FY27e earnings. 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.
iX Biopharma Ltd – Galloping Closer with Partners
Brief Overview iX Biopharma's FY26 results fell below expectations, with revenue and net loss at 72% and 170% of forecast respectively. The US$40.9mn Wafermine Programme from the US Department of Defense has commenced, with the company recognising S$1.2mn as development services. The analyst expects revenue to triple in FY27e, driven by compounding pharmacy operations, Wafermine sales, and development services. Investment Positives The primary investment driver centres on the Wafermine development programme, which is just beginning to gain momentum. Since receiving the Department of Defense award in February, approximately four months of development work have been completed. The analyst expects revenue to climb significantly as more development work for Emergency Use Authorisation (EUA) and Phase 3 trials is undertaken. The company has secured substantial funding through the US$40.9mn Wafermine Programme, which will finance both Phase 3 and EUA development activities. This programme has already started generating revenue, with S$1.2mn recognised as development services in the current period. Revenue diversification is expected to strengthen the business model, with three key growth drivers anticipated for FY27e: the compounding pharmacy operations with partner Orion Speciality, Wafermine sales, and continued development services revenue. The company also benefited from currency movements, with other gains of S$2.1mn resulting from the strengthening of the Australian dollar against the Singapore dollar. Investment Negatives Operating expenses were significantly higher than anticipated, presenting a key challenge for the company. The main contributors were a S$2.08mn share performance plan (non-cash) and S$1mn in one-off professional fees related to securing the Department of Defense funding contract. However, excluding these items, operating expenses remained largely stable. General and administrative expenses increased by 58%, primarily due to the S$2mn performance share plan. Research and development costs also rose by 52% to S$2.5mn. The transfer of equipment from Australia to the United States resulted in lower medicinal cannabis sales, with approximately S$3mn in lost revenue. Cannabis sales specifically declined by 46% to S$3.5mn, contributing to the overall revenue shortfall. Outlook The analyst has incorporated higher upfront costs from US wholesale compounding pharmacy operations and increased performance shares into updated forecasts. Key milestones ahead include the Wafermine EUA submission in 4Q26, EUA approval in 1Q27, EUA production in 2Q27, and Phase 3 trials approval in 2Q27. The US production line is expected to commence in 1Q27, with three additional lines starting in 2Q27. Recommendation & Target Price Phillip Securities Research maintains a BUY recommendation with an unchanged DCF SOTP target price of S$1.00. 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.
