The Australian Commonwealth government along with the states and territories issue bonds to help pay for goods and services they provide. Globally, other sovereigns and their states and municipalities as well as government run entities also issue bonds. Combined, global government bonds make up a large percentage of the...
There has been a growing sense of responsibility from investors demanding ethical, sustainable investments with the aim of providing positive returns and having a long term impact on society.
According to Responsible Investing Association Australasia (RIAA), total assets under management engaged in responsible investment grew 39 per cent in 2018...
Bonds are useful in different economic conditions. Fixed rate bonds provide certainty in declining interest rate environments, floating rate notes pay a fluctuating rate of return and are often sought after when interest rates are rising. While inflation linked bonds are a very good long term hedge against rising...
This month AMP issued a new hybrid. AMP planned to raise $200m via an issue of Capital Notes 2 (ASX code: AMPPB) securities, which it exceeded, raising $275m. The securities are perpetual, convertible, subordinated, non cumulative, unsecured notes and the proceeds used to fund “one or more APRA-regulated entities...
What is a bond?
Companies often need to raise external funds to grow. There are two ways they can do this:
Raise equity by issuing shares
Take on debt by borrowing money
Practically all companies use banks to borrow, but companies can also by-pass the banks and borrow from investors by...
Bonds are useful in different economic conditions. Fixed rate bonds provide certainty in declining interest rate environments, floating rate notes pay a fluctuating rate of return and are often sought after when interest rates are rising. While inflation linked bonds are a very good long term hedge against rising...
