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New tranche of exchange-traded bonds released

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Six additional exchange-traded bonds (XTBs) have been made available on the ASX by the Australian Corporate Bond Company, bringing the total number of XTBs to 39.

Yesterday's XTB release saw senior bonds from AGL Energy, Alumina, Ausnet Services and BHP Billiton released to the market, along with two senior bonds from Downer EDI.

Australian Corporate Bond Company chief executive and co-founder, Richard Murphy, said XTBs provide investors with "capital stable and predictable income opportunities" that "may yield more than many term deposits".

"With market volatility remaining a concern, both advisers and retail investors are looking for investments that offer capital stability and greater returns than term deposits," Mr Murphy said.

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"Corporate bonds and XTBs are generally negatively correlated to equities and hybrids so they can provide true diversification, regular and predictable income as well as capital stability," he said.

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