MARK PATON, FIIG CEO

Mark Paton answers frequently asked questions about bonds.

Are bonds really for private investors?

Absolutely. Savvy private investors, large and small, invest in the Australian corporate bond market, realising it is an essential ingredient of a balanced portfolio. Bonds can have returns significantly above bank deposits and are lower risk than shares in the same company.

But bonds can’t beat the returns of equities or property, can they?

Yes they can. Bonds can and often do beat shares and property in terms of both returns and certainty. When you invest in fixed-rate bonds, FIIG can tell you what you can expect to earn over the life of your investment. Neither shares nor property can provide that certainty, nor guarantee that you will get your initial capital back. Bonds that are held until maturity are structured to always return 100% of face value – no more, no less – along with a regular return that can match and even exceed property and shares, with potentially lower volatility.

Can I invest directly in the bond market?

At FIIG, we make it easy to invest in Australia’s $1 trillion bond market. Along with a suite of research, webinars, seminars and educational material, we have a team of independent experts to help, whether you’re an individual, financial adviser, company, government authority or not-for-profit.

I’m a business – how difficult is it to raise money by issuing bonds?

Surprisingly simple. At FIIG, we are experts in helping Australian and New Zealand companies, with or without credit ratings, to structure and market the issuing of debt.