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 to maturity (YTM)
Yield to maturity (YTM) is the total return an investor can expect to earn if a bond is held until its maturity date, assuming all interest payments are reinvested at the same rate. YTM considers the bond’s current price, face value, coupon rate, and time to maturity, providing a comprehensive measure of its potential profitability.
Variations of Yield to maturity (YTM)
Yield to maturity has specific variations to address bonds with embedded options:
Yield to call (YTC): Assumes the bond will be called (repurchased by the issuer) before maturity, resulting in a shorter cash flow period. YTC is calculated under the assumption that the bond will be called at the earliest feasible date.
Yield to put (YTP): Applies to put bonds, where the holder can sell the bond back to the issuer at a set price. YTP is calculated assuming the bond will be put back at the earliest financially feasible opportunity.
Yield to worst (YTW): Used when a bond has multiple options, such as both call and put provisions. YTW represents the lowest possible yield based on the most disadvantageous terms for the investor.
