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Fixed income

Generate a steady income stream and diversify your portfolio with fixed income through nabtrade.

Reasons to invest in fixed income through nabtrade

Dollar

Great access

Access a wider range of asset classes, including listed and unlisted fixed income.

Binoculars

Wholesale research

Qualitative fixed income research available from Bond Adviser for eligible wholesale clients.

Transfer

One view

Enjoy an integrated view of listed and unlisted fixed income holdings alongside equities.

About fixed income

Fixed income instruments are loans made by the lender (investor) to the borrower (issuer) in exchange for regular income payments and the return of capital at maturity. While fixed income instruments vary, they generally have a fixed term and a schedule of interest payments which differs to equities where dividends are discretionary. 

Fixed income can play a valuable role in investment portfolios, with a wide range of yields to suit your risk profile and investment objectives, capital stability and the repayment of principal at maturity (assuming the issuer does not default or become insolvent) being among the key benefits. 

There are two types of fixed income securities:

  • Listed fixed income securities are traded on the Australian Securities Exchange (ASX) and are accessible by all investors.
  • Unlisted fixed income: Investing in the unlisted market has typically only been available to institutional investors with a minimum investment of $500,000 per bond. NAB Global Bond Service allows eligible wholesale clients to access bond parcels from as little as $50,000.

Benefits

Reliable income

The majority of investment returns for fixed income come from regular (coupon) payments.

Liquidity

Listed fixed income are exchange traded which can give you a convenient way to buy or sell investments.

Security

Fixed income investments are typically less volatile and rank high on a company's capital structure.

Risks

Liquidity risk

For unlisted fixed income investments, there may not be a buyer when you wish to sell.

Interest rate risk

If interest rates rise, the price of bonds in the market fall.

Issuer default

In the event of an issuer default, your coupon payment and return of principal may be impacted.

 

Get started with nabtrade

Every new nabtrade customer receives:

  • A domestic trading account
  • An international trading account
  • An integrated cash account

Additional service options include:

  • nabtrade High Interest Account
  • nabtrade IRESS ViewPoint
  • NAB Margin Loan
  • Self Managed Super Fund setup and management services

Get started today

  1. Apply - Complete the application form - you can select from an Individual, Joint, Company or SMSF/Trust account.
  2. Add cash to your account - watch the tutorial.
  3. Start trading - Login to nabtrade on desktop or download our app.

Switching from another broker?

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How to invest in fixed income

Connection

Listed fixed income

Add cash to your account and trade the same way as shares.

Directions

Unlisted fixed income

Invest in unlisted bonds through the NAB Global Bond Service.