Christmas is a time of joy and giving, and with interest rates currently sitting at higher than we have seen over the past several years, corporate fixed-income securities are undeniably proving to be festive investments.
While it’s not possible to physically wrap a corporate bond and stick it under your Christmas tree, with highly attractive and consistent returns of 6-8% pa on offer, it would be completely understandable if you or your clients were seriously considering them.
Many Happy Returns
It’s not only that corporate fixed-income securities provide greater income generating potential, but the inherent price stability of these investments means that your clients, who hold these securities to maturity, can benefit from reduced portfolio volatility.
This isn’t to say that corporate fixed-income securities are risk free or experience no price volatility, but assuming no credit event takes place during the term of the bond, your clients will most likely receive the face value of their investment back when the security matures.
Tis the Season – For Fixed Income
Buying a corporate bond or other fixed-income security might not be the most exciting present to give, but it could be one of the timeliest.
Indeed, if you take the view that we are at or near the top of this rate hiking cycle, then the fixed-income returns on offer right now could provide a massive opportunity for clients.
If You Don’t Believe, You Won’t Receive
From consistent and stable income generation, to enhanced portfolio stability and diversification, high-quality corporate securities have many attractive features which have the potential to continue brining joy and happiness to your investment portfolio, for many Christmases to come.
Opportunities Available
From leading U.S, department store Macy’s Inc, to financial services giant Barclays, or Japanese technology conglomerate Rakuten, the Australian Bond Exchange has various bespoke investment products available.
For more information about the specific corporate fixed-income securities which we currently have on offer, or to learn more about how fixed-income can benefit your clients’ portfolios, speak to adviser at the Australian Bond Exchange today.
Disclaimer: Australian Bond Exchange Pty Ltd ACN 605 038 935 AFSL 484453 (ABE). This article is intended to provide general information of an educational nature only. It does not constitute the provision of personal advice and does not take into account your personal objectives, financial situation or needs. Before investing with ABE, you should consider the appropriateness of the investment to your particular financial and taxation situation and consider obtaining independent advice before making an investment. Examples in this article are for illustration purposes only and are not a recommendation to buy, sell or hold a particular investment. ABE makes no representation or guarantee as to the availability of a bond with the characteristics described in this article or that an investment made by you will generate the returns in the illustration. Past performance is not an indication of future performance. Investing with ABE is subject to our Client Services and Custody Agreement Terms and Conditions and Financial Services Guide.