Join our investing community

Bonds, the basics

Discussion in 'General Investing Discussion' started by Luke83, 2nd May, 2018.

  1. Luke83

    Luke83 Member

    Joined:
    25th Apr, 2018
    Posts:
    17
    Location:
    Hunter Valley NSW
    Does anyone hold bonds, where do you buy them and what are the pros and cons.
     
    twisted strategies likes this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    781
    Location:
    QLD
    Introduction To Bonds

    Types Of Bonds

    please don't be shy seeking expert advice here .. this is an adult game

    i currently have only two interest-bearing securities ( both floating rate ) as i struggle to find attractive risk v. reward ratios

    ( both current equities bought before 2015 )

    please take care ....
     
    Luke83 likes this.
  3. Luke83

    Luke83 Member

    Joined:
    25th Apr, 2018
    Posts:
    17
    Location:
    Hunter Valley NSW
    So they are bought through the ASX like shares?

    I am assuming the Aust Government bonds are the SAFEST as far as Risk is concerned?
     
    twisted strategies likes this.
  4. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    781
    Location:
    QLD
    they can be if you can find a seller

    the problem that way is to get the price and quantity you would like

    for example

    GSBE19 = AUSTRALIAN GOVERNMENT TREASURY BONDS TREASURY BOND


    [​IMG] $103.49 -$0.286 (-0.3%)
    $102.00 $103.80 as at 3 May 11:45AM ET

    4.13% below 52 week high

    $103.24 Low $107.94 High

    is availalble on Bell Direct ( so i assume also on Commsec )

    but has only 2 buyers and one seller ( @ $103.80 for a max of 65 units)

    some of these beasties don't trade on market for months

    so please make sure you REALLY want to buy what you are chasing
     
    Luke83 likes this.
  5. Financial Advisors AU

    Financial Advisors AU New Member

    Joined:
    12th Jun, 2018
    Posts:
    3
    Location:
    Brisbane
    Thanks for the information!
     
    twisted strategies likes this.
  6. Sam Edwards

    Sam Edwards New Member

    Joined:
    11th Aug, 2018
    Posts:
    1
    Location:
    Australia
    Buying bonds seems fairly straight forward, but when a bond reaches maturity do the shares automatically get sold off and funds returned to your trading account?
     
    twisted strategies likes this.
  7. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    781
    Location:
    QLD
    to your nominated bank account ( for me ) , i have a saver account that actually pays interest on reasonable monthly balances ( under $5000 , unlike the trading platform linked account which desires a large slab of cash befored paying interest .)

    ALSO some will offering a 'roll-over '' alternative to a new bond ( or note )