Disclaimer
BY CLICKING ON “I AGREE”, I DECLARE I AM A WHOLESALE CLIENT AS DEFINED IN THE CORPORATIONS ACT 2001.
What is a Wholesale Client?
A person or entity is a “wholesale client” if they satisfy the requirements of section 761G of the Corporations Act.
This commonly includes a person or entity:
who holds an Australian Financial Services License
who has or controls at least $10 million (and may include funds held by an associate or under a trust that the person manages)
that is a body regulated by APRA other than a trustee of:
(i) a superannuation fund;
(ii) an approved deposit fund;
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme.
within the meaning of the Superannuation Industry (Supervision) Act 1993that is a body registered under the Financial Corporations Act 1974.
that is a trustee of:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iii) a pooled superannuation trust; or
(iv) a public sector superannuation scheme
within the meaning of the Superannuation Industry (Supervision) Act 1993 and the fund, trust or scheme has net assets of at least $10 million.that is a listed entity or a related body corporate of a listed entity
that is an exempt public authority
that is a body corporate, or an unincorporated body, that:
(i) carries on a business of investment in financial products, interests in land or other investments; and
(ii) for those purposes, invests funds received (directly or indirectly) following an offer or invitation to the public, within the meaning of section 82 of the Corporations Act 2001, the terms of which provided for the funds subscribed to be invested for those purposes.that is a foreign entity which, if established or incorporated in Australia, would be covered by one of the preceding paragraphs.
Fixed income
Bond maturity
Bond maturity refers to the date when a bond's principal, or face value, is repaid to the investor, and interest payments cease. It marks the end of the bond's term, which can range from short-term (less than one year) to long-term (30 years or more). The maturity date helps investors assess the bond's duration risk, as longer maturities generally involve higher interest rate risk. Usually, the longer the term to maturity, the higher the interest rate on the bond will be to compensate for this increased risk. Also, longer-term bonds are more volatile in price on the secondary bond market due to their sensitivity to interest rate changes.
Bond maturities
Bonds can be characterized as having the following maturities:
Short-term bonds: up to three years
Intermediate-term bonds: four to ten years
Long-term bonds: more than ten years
Other bond maturity considerations
Interest rate risk: Longer maturities mean that there's a greater chance for interest rates to change over the life of the bond, which affects the bond's price inversely.
Price volatility: Longer-term bonds exhibit greater price fluctuations in response to interest rate movements compared to shorter-term bonds.
Yield considerations: Investors demand higher yields for longer-term bonds to compensate for the increased risk associated with time and interest rate uncertainty.
