Bonds 101: how to invest in bonds & what to look out for
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What are bonds and why are they important for investors?
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This podcast contains general financial advice only. That means it's not specific to you, your needs, goals or objectives, so don't act on the information until you've spoken with your financial advisor. You'll find our full disclosure, disclaimer and link to our financial services guide in the show notes. G'day Kate, welcome to this episode of the Australian Finance Podcast.
It is wonderful to be back, Owen.
Oh, isn't it just? We're talking bonds today and we're talking about this big part of our portfolios that a lot of people tend to neglect.
Yeah, it's definitely not something we've spoken about much before on the podcast, is it?
No, we've attempted to tackle this topic through Q&As and people asking these questions, and it is so vitally important. So what we've done today is prepared an episode that's a little bit different for listeners. So we're going to take our listeners on a bit of a journey through bonds, what they are, and everything in between.
Yeah, it was quite funny when we told our producer, Monique, that we're going to talk about bonds. The first thing on her mind was James Bond. And it's pretty common because a lot of listeners won't have heard about bonds before, or maybe they've heard about them in passing as part of the fixed interest part of their super fund. But if you are interested in better understanding this defensive fixed interest part of your portfolio, or just really want to know how to invest in bonds yourself, or just better understand the bond market that you've heard about in the news. We're going to cover that and more in this episode. And we also spoke to Evan Metcalf from ETF Securities about this topic as well.
So you'll hear snippets from him throughout the episode.
Yeah, we've got a lot jammed into this one conversation and we do not want to um say we're going to keep it light-hearted we're going to keep it very educational this is super important this episode like if you only listen to one episode on bonds try and make it this one because we will try and give you the base level of knowledge and this is a really important part of your portfolio like hugely important part of your portfolio so it's you know anywhere from say 10 for really you know growth focused investors right up to say i don't know 60 or 70 in retirement so this can be a huge part of portfolios And as we're about to explain, Kate, the bond market's pretty big.
Yeah, I didn't even realise until I was doing research for this episode, but the bond market globally is even bigger than the equity market. And in Australia, when I was having a look as of May 2022, there's over $888 billion worth of just Australian government bonds issued globally.
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Chapters
7 chapters
1
What are bonds and why are they important for investors?
0:00–8:53
2
What are the different types of bonds available?
8:53–11:34
3
How do coupon payments and bond maturity work?
11:34–14:39
4
How can I include bonds in my investment portfolio?
14:39–16:09
5
What risks should investors consider when investing in bonds?
16:09–21:16
6
How do I start investing in bonds as a retail investor?
21:16–22:51
7
What are the advantages of using bond ETFs?
22:51–49:32
Speakers
4 identifiedMore from Australian Finance Podcast
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Sounds like good money advice... But is it?