Tuesday 23 August 2016 by Education (basics)

A bird's eye view on fixed and floating rate bonds

In order to make education on bonds more accessible, Head of Portfolio Strategies’ Leigh Winton and Director of Education and Research Elizabeth Moran have produced two new webinars – one on fixed rate bonds, and the other on floating rate notes

The two part webinar series begins with an introduction to fixed rate bonds, and this video should be viewed first. Leigh and Liz discuss this type of bond as a security which pays a fixed, pre determined rate of interest, known as a coupon. This interest rate is set at the time of issue and does not change during the life of the bond.

The fixed rate bond webinar can be viewed below.

The second webinar in the series explains how floating rate notes can remove interest rate risk by being tied to a variable benchmark, known as the Bank Bill Swap Rate (BBSW). This benchmark is adjusted each quarter based on prevailing market interest rates. More information on floating rate notes can also be found here.External link - opens in a new window

The floating rate note webinar can be viewed below.

Both webinar videos are provided in high definition format and can be rewound or fast forwarded as needed. The webinars are each around 30 minutes long.


Note: If you have any questions or wish to purchase fixed or floating rate bonds, please contact your local dealer.