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What is Bonds and Notes?
· Bonds and Notes is financial instruments issued by governments, municipal organizations, companies, and other entities to raise funds.
· Investors who purchase bond essentially lend money to the issuer and receive fixed interest income in return.
· Investors can hold bonds and bills until maturity or sell them on the secondary market before they mature.
Benefits of investing in Bonds and Notes
  • Stable Income During the maturity period of bond and bills, they provide fixed interest income
  • Low Risk Investors can retrieve their invested principal when the bonds mature unless there is a default
  • Wide Range of Choices We carefully select high-quality Bonds and Notes products from various regions to meet investment needs
  • Predictable Returns These products typically offer predictable interest on fixed dates, ensuring future returns
Risk of investing in Bonds and Notes:
· This information is for general information purposes only and does not constitute investment advice. Carefully assess your risk tolerance and investment goals and consider seeking professional advice if necessary. You should understand the terms and conditions of the bond and note, including its credit rating, its maturity, its rate and yield, whether it is callable, and other relevant information. 
· The following risk disclosure statements explain some general risks, but are not meant to be an exhaustive list of all possible risks, involved in your investment or dealing in bonds. Please refer to the relevant offering documents or terms sheets for further details.
· The price of both bonds and notes can fluctuate significantly due to various factors including changes in interest rates, creditworthiness of the issuer and overall market conditions. Over time, inflation erodes the purchasing power of your investment. While bonds provide a fixed interest rate, if inflation rises faster, the real value of your investment will decrease. Your return may be substantially less than the initial investment.
Secure and Seamless Trading Experience
  • Competitive Trading Costs
    We offer the one of the most competitive trading costs in the industry to help investors achieve greater profit margins.
  • Financial Regulation
    Doo Financial Australia Limited is an Australian financial services licensee (Licence Number 222650), regulated by the Australian Securities & Investments Commission ('ASIC').​​
  • 24/7/365 Professional Support
    With 500+ industry's professionals, Doo Group provides top-notch support services to investors 24/7, 365 days a year.
For More Information About Bonds and Notes
About Bonds and Notes
FAQ
  • Bond

  • Capital Notes

  • What is the relationship between interest rates and bond prices?
    They are inversely correlated. When interest rates fall, bond prices rise; and vice versa. If you buy a bond and hold onto it until it matures - as many investors do - rising interest rates will not affect the principal amount you receive upon maturity. But if the interest rates go up and you need to sell your bonds before they mature, their value may have gone down and you may have to sell them at a loss. If the interest rates have gone down since you bought the bonds, the value of your bonds may have gone up and that will give you what is known as a "capital gain".
  • Is there a minimum investment period or a lock-in period?
    No. Bonds are mainly medium to long-term investments, not short-term speculations. If you're planning to invest your funds in bonds, you should be prepared to do so for the full investment tenor.
  • What is accrued interest?
    Accrued interest is the accumulated interest from the last coupon payment date until the settlement date of the bond (i.e. the date which the bond transaction completes). If you are purchasing a bond, you will pay the existing bondholder (i.e. the seller) the accrued interest first and in the next coupon payment, you are entitled to receive the full coupon based on the nominal you invest, effectively receiving the amount pro-rata.
  • Do I have to hold bonds until maturity?
    Client can sell the bonds before it matures and the selling price is subject to market conditions.
  • What are capital notes?
    Capital notes are financial instruments issued by institutions to raise capital. They have characteristics of both debt and equity.
  • Who issues capital notes?
    Capital notes are issued by large financial institutions, smaller regional banks, and other non-financial companies.
  • What determines the distribution for floating-rate notes?
    The distribution, linked to the total distribution payable, is determined by the 90-day Bank Bill Swap Rate (BBSW) at the beginning of each quarter. It is recalculated for the coming quarter at the first distribution payment date and subsequent quarters based on the fluctuating BBSW rate.
  • What are the trading hours for Capital Notes on the ASX?
    The trading hours for Capital Notes on the ASX typically follow the exchange's regular trading hours, which are from 10:00 AM to 4:00 PM (AEST) on business days.
FAQ
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