Fixed income education

Cashflow

Fixed income investments provide a regular income stream through coupon or interest payments.

Liquidity

There is a deep and active market for secondary trading of most fixed income securities in Australia. Low risk investments like Government bonds can be highly liquid and sold at short notice if needed.

Diversity

Fixed income investors enjoy diversification from the two most highly cyclical asset classes - equities and property.

Capital stability

Bondholders have priority over hybrid and equity holders in the event of liquidation. Assuming the issuer of a bond remains solvent, they are contractually obliged to pay back the principal value to the bondholder.