Question

In Australia, the Federal and State governments can raise funds by issuing bonds. Please list the major investors names of these fond .

Answer 1

The Commonwealth of Australia issues bonds called Commonwealth Government Securities. A form of these bonds is available for trading on the Australian Securities Exchange (ASX). These investments provide investors with a predictable cash flow paid on a periodic basis, with a specified maturity date.

Commonwealth Government Securities are listed on the ASX as 'Exchange-traded Treasury Bonds' and 'Exchange-traded Treasury Indexed Bonds'.

Exchange-traded Treasury Bonds are debt securities with a fixed face value (the amount you will get back at maturity). They carry the same annual rate of interest over the life of the security, payable every 6 months.

Exchange-traded Treasury Indexed Bonds have a face value that is adjusted for movements in the Consumer Price Index (CPI). Interest is paid quarterly at a fixed rate, on the adjusted face value. This means the amount of interest you receive will vary from one quarter to the next.

Exchange-traded Treasury Bonds and Exchange-traded Treasury Indexed Bonds are also known as:

• Commonwealth Government Security (CGS) depository interest
• Australian Government bonds
• Exchange-traded Australian Government bonds

Bond types

Exchange-traded Australian Government Bonds (eAGBs) offer a convenient and readily accessible way to invest in Australian Government Bonds. Australian Government Bonds (AGBs) are debt securities issued by the Australian Government.

A holder of eAGBs has beneficial ownership of AGBs in the form of CHESS Depositary Interests (CDIs). This means holders obtain all the economic benefits, including coupon and principal payments, attached to legal ownership of the AGBs over which the CDIs have been issued.