Improving access to the Corporate Bond market for retail investors
NAB joins with the Australian Centre for Financial Studies to launch their report ‘Improving access to the Corporate Bond market for retail investors’ which assesses where the market currently is, the factors affecting its growth, and the impediments to connecting investors and issuers.
Much has changed in the Australian Corporate Bond market over the last year however it remains small and underdeveloped in comparison to the equity market. As part of NAB’s commitment to the development of the Australian Corporate Bond market, we are pleased to join with the Australian Centre for Financial Studies (ACFS) to launch their new report ‘Improving access to the Corporate Bond market for retail investors’ (PDF, 462KB).
The report, launched on Monday 29 June, was accompanied by a webcast (below) featuring the ACFS’ Director of Research, Professor Kevin Davies and NAB’s Executive General Manager of Capital Financing, Steve Lambert, where they discussed with participants whether the Corporate Bond market remains the adolescent of financial markets, or if it’s just misunderstood.
This report, the fifth in a series on the Corporate Bond market, begins by assessing where the market is currently at, the key factors affecting the growth of the market, and the regulatory and other impediments to connecting investors and issuers.
It then goes on to explore retail investor interest in the market, and the influence of corporate credit spreads, liquidity levels and market mechanics upon investor demand. Having taken stock of this, the report turns its focus towards the developments underway (driven by technological advancements) which are making access to the market easier. These include Bond Exchange Traded Funds (ETFs), XTBs and mFunds.
Finally, the ACFS concludes their report with analysis of the changes taking place in the Corporate Bond space, including regulatory change (such as the Simple Corporate Bonds and Other Measures Act) and market developments (such as the increasing number of unrated corporate bonds being issued into the Australian over-the-counter Corporate Bond market), before highlighting the ambiguity about the treatment of SMSFs and their trustees as sophisticated investors, and their consequent ability to participate in wholesale market offerings.
To find out more download the full report:
- Australian Debt Securities and Corporate Bonds: Improving access to the Corporate Bond Market for retail investors – June 2015 (PDF, 462KB)
Explore previous reports from the ACFS
- Australian Debt Securities and Corporate Bonds: Trends and prospects – February 2014
This fourth report investigates recent developments in the Australian Corporate Bond market, places the Australian market in an international context and speculates on what the future holds for the asset class.
- Australian Debt Securities and Corporate Bonds: How to add Australian Debt Securities and Corporate Bonds to a portfolio – October 2013
The third report covers the important topic of accessing the fixed income market and the various methods investors can use to access debt securities and corporate bonds.
- Australian Debt Securities and Corporate Bonds: What’s the risk important consideration for Investors – July 2013
The second report in the series outlined the importance of understanding the different types of corporate bonds, the nature of risks involved and what levels of return is appropriate. Why do companies issue corporate bonds and how do the risks differ from company shares?
- Australian Corporate Bonds – The missing asset class for retail investors – January 2013
The first report in the series examined the importance of corporate bonds as an asset class for investors, and discussed the reasons they should be considered as part of a diversified investment portfolio.