SINGAPORE (July 2): Financial blogger Kevin was over the moon when he found out about new private equity bonds for retail investors issued by Azalea Investment Management, a unit of Temasek Holdings. Believed to be the first of its kind in the world, the Astrea IV bonds are backed by cash flows from a US$1.1 billion ($1.5 billion) portfolio of 36 private equity funds. Retail investors needed to fork out just $2,000 to buy into the so-called Class A-1 tranche, which carries a relatively modest coupon of 4.35% per annum. To be sure, there are higher-yielding products around, but the attraction of Astrea IV lies in its novelty.

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