Bonds 101: how to invest in bonds & what to look out for

Have you ever wondered what an investment bond is? To put it simply, bonds are effectively an IOU between a borrower (the issuer of the bond) and a lender (the investor who purchases the bond). Although they’re less discussed in the retail investment space, the bond market in Australia alone is huge! As of May 2022, there are over $888 billion worth of Australian Government bonds issued, and that’s not even including the trillion dollar corporate bond market in Australia. In this investment bond crash course, we cover: 💸 Different types of bonds 💸 Bond jargon buster 💸 Why investors use bonds as part of a diversified portfolio 💸 Key things to look at when investing in bonds 💸 Risks involved with investing in bonds 💸 Easier ways to invest in bonds Ready-made ETF portfolios? Rask ETFs has you covered (use code ‘AFP’ for $50 off your lifetime membership). Take one of our amazing money & investing courses (think ETFs, shares, property and FIRE) on Rask Education and join our wonderful FB community. If you want to thank us for putting this show together, please give The Australian Finance Podcast a 5 star review on Apple Podcasts or Spotify - it’s a 5 second task which really helps support the show (and puts a big smile on our faces). Pearler, the broker for long-term investors. Sign-up to Pearler using the code “RASK” for $10 of Pearler Credit: bit.ly/Pearler We're proudly supported by ETF Securities. Learn more about the growing range of leading ETFs, on the ETF Securities website: bit.ly/fundsETFS Boost your investment potential, with FundLater. With InvestSMART's Fundlater, you can start a $10,000 investment portfolio, with only $4,000 upfront. Find out how: rask.com.au/inv-fundlater Investing Made Simple. Thanks to InvestSMART's ready-made ETF portfolios, you can start investing now in a portfolio managed by experts. Not only that, you can invest confidently knowing your investment fees are capped. Learn more: rask.com.au/inv-pma DISCLAIMER: This podcast contains general financial information only. That means the information does not take into account your objectives, financial situation, or needs. Because of that, you should consider if the information is appropriate to you and your needs, before acting on it. If you’re confused about what that means or what your needs are, you should always consult a licensed and trusted financial planner. Unfortunately, we cannot guarantee the accuracy of the information in this podcast, including any financial, taxation, and/or legal information. Remember, past performance is not a reliable indicator of future performance. The Rask Group is NOT a qualified tax accountant, financial (tax) adviser, or financial adviser. Full individual disclosures for each guest are available via the show notes page. Owen, Kate and The Rask Group Pty Ltd do NOT receive anything for mentioning Super funds, products, shares, bank accounts, etc. Access The Rask Group's Financial Services Guide (FSG): https://www.rask.com.au/fsg Learn more about your ad choices. Visit megaphone.fm/adchoices