Australian Government Bonds (AGBs), or Australian treasuries, are debt securities issued by the Australian government. By issuing these bonds, the government essentially borrows money from investors, promising to return the principal amount at maturity, along with periodic interest payments. AGBs serve as a viable investment vehicle for varied portfolios.
Bond ratings are a measure of the creditworthiness of a bond issuer. They give investors an idea of the risk associated with a particular bond based on the issuer’s financial stability and ability to repay its debt. A bond rating is a grade given to bonds that tells investors how likely the bond issuer will repay the debt.
One popular term that has emerged since 2010 from the increasing adoption of automation in the financial world is ‘robo advisor’. The term is now synonymous with automated personalised investment advice and optional automated discretionary investment management.
A Total Return Bond ETF is an exchange-traded fund that invests in a diversified set of bonds, seeking to offer investors the total economic return of the underlying bonds. The total return includes interest income, capital gains or losses, and currency gains or losses.
Bond ETFs (Exchange-Traded Funds) are versatile investment vehicles, and for good reason. Diversified bond ETFs comprise an array of bonds varying from short-term to long-term maturity periods and spanning different types, such as government and corporate bonds.
