Why invest in Interest Rate Securities?
Interest Rate Securities are debt investments that pay a fixed or floating rate of return. As an investor, you are lending money to the issuer — in return, the issuer pays you interest, and promises to repay the issue price at a specific time. There are three main types of Interest Rate Securities traded on the ASX: Australian Government Bonds, Corporate Bonds and Hybrid Securities.
Interest Rate Securities provide regular income and typically higher rates of interest from a bank.