The how and why of investing in bonds and fixed income
We’ve recently received a number of enquiries about an asset class that rarely receives any attention from investors – yet its total market value substantially exceeds the equity market. It’s one that pays you an agreed interest rate for a set period of time when you lend your money to the Government or a company. Bonds.
We’ve recently received a number of enquiries about an asset class that rarely receives any attention from investors – yet its total market value substantially exceeds the equity market. It’s one that pays you an agreed interest rate for a set period of time when you lend your money to the Government or a company. Bonds.
In this episodes of Your Wealth, Mark Todd, fixed income guru and NAB’s Director of Investor Sales Markets, shares his expertise on Bonds, including:
- What bonds are and how they work
- How “capital guarantee” products work and when are they too good to be true
- Factors to consider when choosing a bond, such as; term, rate, the quality of the borrower, likelihood of the company repaying you
- How to get exposure to bonds, and
- How do they compare to other securities.
If you are pressed for time, consider listening at 1.5x or 2x the usual speed – this can actually improve your retention of information while saving time.