Wholesale bonds, make up the majority of the bonds available in the market. They are typically bought and sold Over-The-Counter (OTC) – the transaction happens directly between the buyer and seller, with a broker acting as the intermediary to establish the bid and ask quotes. Wholesale bonds usually require a minimum investment amount of S$250K or US$200K, depending on the bond denomination. Most reputable companies offer wholesale bonds as a means to borrow money.
On the other hand, retail bonds are bonds that are traded on a public stock exchange. While they are offered in smaller ticket sizes, they pale in comparison to the quality and variety of bonds available in the market. For example, as of July 2021, there are only 11 SGD-denominated retail bonds available to investors, compared to more than 300 wholesale bonds present on OTC.