In this episode of The Australian Finance Podcast, Kate Campbell and Owen Rask chat to Evan Metcalf from ETF Securities about investment bonds, including key terminology, how they work and their place in a diversified portfolio.
Listen now: Apple Podcasts, Spotify, YouTube & Castbox
Have you ever wondered what an investment bond is?
To put it simply, bonds are effectively an IOU between a borrower (the issuer of the bond) and a lender (the investor who purchases the bond).
Although they’re less discussed in the retail investment space, the bond market in Australia alone is huge! As of May 2022, there are over $888 billion worth of Australian Government bonds issued, and that’s not even including the trillion dollar corporate bond market in Australia.
In this investment bond crash course, we cover:
💸 Different types of bonds
💸 Bond jargon buster
💸 Why investors use bonds as part of a diversified portfolio
💸 Key things to look at when investing in bonds
💸 Risks involved with investing in bonds
💸 Easier ways to invest in bonds
Episode Resources
- Investing in corporate bonds? | MoneySmart (Checklist Included)
- Investing in Bonds (ASX)
- The Best Australian Bond ETFs | Stockspot
- Australian Government Bonds Course (ASX)
- Government Bonds: Everything You Need to Know | BetaShares
- Introduction to Investing in Bonds (Investopedia)
- ASX bond calculator – overview
- Exchange-traded Treasury Bonds
- Yield Report
Podcast Supporters
Pearler, the broker for long-term investors.
Sign-up to Pearler using the code “RASK” for $10 of Pearler Credit.
We’re proudly supported by ETF Securities.
Learn more about the growing range of leading ETFs, on the ETF Securities website.
Boost your investment potential, with FundLater.
With InvestSMART’s Fundlater, you can start a $10,000 investment portfolio, with only $4,000 upfront. Click here to find out how.
Investing Made Simple.
Thanks to InvestSMART’s ready-made ETF portfolios, you can start investing now in a portfolio managed by experts. Not only that, you can invest confidently knowing your investment fees are capped. Click here to get started.
