- Exchange-traded Treasury Bonds
Exchange-traded Treasury Bonds
Disclaimer: Please note that the information on this website does not constitute investment advice. You should obtain independent financial advice before buying Exchange-traded Treasury Bonds.
What are Exchange-traded Treasury Bonds?
Exchange-traded Treasury Bonds (eTBs) offer a convenient and readily accessible way to invest in Treasury Bonds. eTBs are quoted and traded on the Australian Securities Exchange (ASX).
An eTB Holder has beneficial ownership of Treasury Bonds in the form of CHESS Depositary Interests (CDIs). This means obtaining all of the economic benefits (including coupon and principal payments) attached to legal ownership of the Treasury Bonds over which the CDIs have been issued.
A one unit holding of an eTB provides beneficial ownership of $100 Face Value of the Treasury Bond over which it has been issued.
Why invest in Exchange-traded Treasury Bonds?
- The payment of coupon interest and repayment of principal at maturity is made by the Australian Government.
- Regular and stable income
- You earn interest at a fixed rate for the life of the investment, payable six monthly.
- Liquid investment
- eTBs can be sold any time the ASX market is open. This means your money is not locked away like it might be in some other interest earning investments.
- eTBs may provide you with an opportunity to diversify your investment portfolio.
- Choice of maturities
- There is a wide range of eTBs available extending out to around 30 years.
How to invest in Exchange-traded Treasury Bonds?
eTBs can be bought and sold on the ASX in the same way as listed shares. For more information please see Buying and Selling eTBs.