The Australian Corporate Bond Company (ACBC) has expanded its range of ASX-listed exchange-traded bonds (XTB) with the launch of six senior floating rate notes.
The six 'floaters' are the first XTBs to be listed over bank bonds, providing investors with a stable investment vehicle that is not as sensitive to interest rate changes, an ACBC-issued statement said.
ACBC chief executive and co-founder Richard Murphy said: “We are excited about the potential opportunities these new XTBs can bring.
“XTB floaters are high-quality, capital-stable instruments that share many of the attributes of cash investments and the benefits of trading on the ASX.”
According to the statement, “floaters should typically deliver a higher return than 'at-call’ cash accounts over time".
“In addition, floaters have advantages relative to term deposits in that they can be sold at any time and can be seen as an ASX-traded alternative," the statement said.
The bank bonds have been issued by AMP, Bank of Queensland, NAB and Suncorp-Metway.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Despite unemployment falling to pre-pandemic levels, the central bank still thinks it’s too early to count its chickens on the success of ...