What are Exchange-traded Australian Government Bonds?
Exchange-traded Australian Government Bonds (AGBs) offer a convenient and readily accessible way to invest in Australian Government Bonds. Australian Government Bonds are debt securities issued by the Australian Government.
A holder of Exchange-traded AGBs has beneficial ownership of AGBs in the form of CHESS Depositary Interests (CDIs). This means holders obtain all the economic benefits, including coupon and principal payments, attached to legal ownership of the AGBs over which the CDIs have been issued.
Read more about the two types of Exchange-traded AGBs:
Why invest in Exchange-traded Australian Government Bonds?
- Security: Interest and principal payments are paid by the Australian Government.
- Stable and regular income: Semi-annual or quarterly coupon interest payments.
- Liquid investment: Easy to buy and sell on the Australian Securities Exchange.
- Diversification: Exchange-traded AGBs offer a way to diversify investment portfolios.
- Choice of maturities: A wide range of maturities is available.
How to invest in Exchange-traded Australian Government Bonds
Exchange-traded Australian Government Bonds (AGBs) have the appeal and convenience of being electronically quoted and traded through the Australian Securities Exchange (ASX) in small or large parcels.
There are two types of Exchange-traded AGBs: Exchange-traded Treasury Bonds (eTBs) and Exchange-traded Treasury Indexed Bonds (eTIBs).
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