As their name suggests, corporate bonds are issued by Australian companies and financial institutions. Generally speaking these bonds will be rated by at least one of the main credit rating agencies so that investors can get a sense of how creditworthy the issuer is.
YieldReport follows this market closely and reports on corporate bonds – keeping readers apprised of the available yields and new issues. Corporate bonds will often have higher yields than either government or semi-government bonds again reflecting the different credit risks. For an investor the extra yield of a corporate bonds could be well worth the extra perceived risk.
While Government, semi-Government and corporate bonds yields are closely related they will also often move independently. In times of economic upheaval investors will demand higher yields for investing in corporate or semi-government bonds compared to government bonds. These trading relationships can be quite complex at times but YieldReport seeks to provide easy to digest commentary on the various risks and opportunities these bonds represent.
Where appropriate we compare products and highlight developing trends and underlying movements in yield.