ACBC offer higher yield exchange traded bonds

A new tranche of exchange traded bonds (XTBs) will provide investors with predictable income returns without sacrificing capital, the Australian Corporate Bond Company (ACBC) believes.

The ACBC released six new XTBs on the Australian Securities Exchange, as part of its second tranche of XTBs.

The company forecast that the new XTBs, which includes three Qantas bonds, and one each from APA Group, Caltex and Mirvax, would provide indicative yields of between 2.83 per cent and 4.98 per cent, with investors receiving payments twice a year.

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ACBC chief executive, Richard Murphy, said XTBs provided investors with "an easy way" to protect their investment by accessing fixed income diversification.

"While it's still early days for XTBs, we've been very encouraged by the positive feedback we've been getting from advisers and investors to date," he said.

"Going forward we remain focused on continuing to educate investors on the benefits of gaining exposure to corporate bonds and rolling out new tranches of XTBs."

The ACBC said more XTBs will be launched in the coming weeks.

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