Bonds
Debt security of loan made by the holder to issuer
Investment Options
LindaleSolomons can provide investors with cross-regional industries & diversified bonds which includes:
- Sovereign or Government bonds, supra-national bonds, corporate bonds and asset-backed securities.
- Fixed-rate bonds, floating-rate bonds, fixed to floating rate bonds, hybrid and convertible bonds.
- These bonds are available in numerous currencies such as AUD, USD, EUR, GBP and others.
Benefits of Investment
- Consistentand predictable income and cashflow for investors.
- Competitive Returnswhen compared to Cash & Term Deposits.
- Portfolio Diversificationopportunities through bond investments which are classified as a more defensive asset.
Risks(including but not limited to)
- Credit risk is a key consideration when investing in bonds.
- Typically, bonds have an inverse relationship with interest rates, assuming other factors remain constant.
- While bonds can provide a stable income stream, their performance may not match other asset classes like equities or real estate for returns over the long term.
| Issuer | Currency | Sector | Issue size (mil) | Payment rank | Coupon type | Coupon Formula | Current Coupon | Call date | Maturity date | Yield | Margin (TMASW) | Running Yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Commonwealth Bank Australia | Aud | Financials | 900 | Subordinated | Fixed | 6.86 percent | 6.86 percent | 09-nov-27 | 09-nov-32 | 5.50 percent | 2.06 percent | 6.50 percent |
| Aust & NZ Banking Group | Aud | Financials | 900 | Subordinated | Fixed | 6.41 percent | 6.41 percent | 20-sep-29 | 20-sep-34 | 5.91 percent | 2.28 percent | 6.24 percent |
| National Australia Bank | Aud | Financials | 950 | Subordinated | Fixed | 6.16 percent | 6.16 percent | 09-mar-28 | 09-mar-33 | 5.55 percent | 2.05 percent | 6.01 percent |
| Aust & NZ Banking Group | Aud | Financials | 300 | Subordinated | Floating | BBSW3M +2.7% | 6.20 percent | 12-aug-27 | 12-aug-32 | 5.35 percent | 1.88 percent | 6.01 percent |
| Commonwealth Bank Australia | Aud | Financials | 1100 | Subordinated | Floating | BBSW3M +2.7% | 6.16 percent | 09-nov-27 | 09-nov-32 | 5.41 percent | 1.92 percent | 5.97 percent |
Key Features
| Estimated Yield P.A | Consult Your Financial Advisor |
| Duration | 3-48 Months |
| Risk level | Very low |
| Focus of investment | Income |
Want to participate in a newly issued bond investment?
Looking for a smart investment opportunity? Applying for new bond issuances is a key strategy for bond market investors seeking high quality bonds at low prices with potential for strong capital gains. Information of the financial market is very asymmetrical, and most investors know little about the issuance process for new bonds. This results in access only to the secondary bond market with higher premium levels, missing numerous investment possibilities.
If you want to participate in the issuance of bonds in the primary market, even institutional investors decide and submit the subscription amount within a few hours of the "book building". Missing this period means you can only purchase in the secondary market with additional premium levels. Information channels about bonds are often blocked, leaving individual investors learning about information for new bonds only after the new bond issuance.
We will assist by providing the indicative quotation and tentative issuance date of the new debt. This will occur after the "Roadshow" and the decision of issuing the new debt before the "book keeping" to break the information asymmetry and let you prepare well in advance to purchase your desired bonds.
