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
Yield
Yield refers to the income an investor earns from an investment, expressed as a percentage of its current price or face value. In fixed income, yield typically comes from the interest (coupon) payments on bonds and may also reflect gains or losses if the bond is bought at a discount or premium. Yield is a key measure for evaluating the attractiveness and potential return of fixed income investments.
Key characteristics
Types of yield: Common measures include current yield (coupon divided by current price) and yield to maturity (total expected return if held to maturity, including coupons and price changes).
Income gauge: Yield provides a snapshot of the income investors can expect relative to the bond’s price.
Price relationship: Yields and bond prices move inversely, this means when bond prices fall, yields rise, and vice versa.
Why yield is important
Comparing opportunities: Yield helps investors compare fixed income securities and select those that best meet their income and return goals.
Managing risk and return: Yield reflects the level of risk taken—higher yields typically compensate for higher credit or interest rate risk.
Generating income: Yield is a primary driver of the regular cash flows that fixed income investments provide, supporting income-focused strategies.
Signaling market conditions: Yield levels across maturities and sectors can provide insights into market expectations, economic conditions, and investor sentiment.
Yield plays a vital role in helping investors make informed decisions, balance their portfolios, and meet their investment objectives.
