What types of bonds are there?
- Submitted by 7 months ago
In Australia, there are two types of bonds:
Corporate bonds: These are bonds issued by companies. They tend to offer higher interest rates, but there is more default risk with small, growing companies than with large, blue-chip companies and government entities
Australian Government bonds: These are bonds issued by the federal government. Due to the lack of default risk, they are considered safer investments than corporate bonds and offer lower interest rates.