What is a bond?

If you are not aware what a bond is, you are not alone. With a minimum parcel size of $500k, it just wasn't accessible for mums and dads. I thought I write this quick educational piece to explain what this defensive asset are without so much jargon. In its simplest form bonds are an "I [...]

Earning Interest Everyday

"Compound interest is the eighth wonder of the world" ~ Albert Einstein One of the major benefits of owning bonds is the earning of interest everyday. As you have a regular coupon (payout) schedule you know exactly how much your bonds have accrued in income. It also means every day you're a bondholder you are [...]

Capital Preservation

We all know James Bond gets into sticky situations in his efforts to save the world. Whether it be a massive shootout, falling out of a plane or crashing a train, he always comes out relatively unscathed no matter how dire it got. He was always safe. It's the same with Bonds as an investment, [...]

Bonds at a discount or premium

Pop quiz, which of these bonds would you rather invest? Bond A: 3 year bond with a 3.00% coupon at price $94.50 Bond B: 3 year bond with a 10.00% coupon at price $113.77 I had an interesting conversation with a client who only wanted to purchase bonds under par ($100) and I wanted to [...]

The inner workings of a bond

Its quite endemic that bonds aren't more well known in Australia. A lot of that is intentional from the wholesale market. Trying to confuse the retail investors with lots of numbers, formulas and jargon. This article will go through some of the terminology of bonds and clear things up a bit. Face Value / Amount [...]

Go to Top