# Bonds



## tothemax6 (24 November 2010)

Hi all,
I've noticed some bonds available for sale recently, and since I know very little about bonds (and I couldn't find much in this forum) I was wondering if anyone here buys these? The two I saw were the Combank retail bonds (~6%, 5yrs) and the Healthscope notes (~11%, 5.5 yrs) (both to be ASX listed). Both have smallish minimums (5k).
So my questions are, who would buy the comsec bond when you can place a 6month term deposit for about the same interest rate? Also, to sell the bonds once you have them, does anyone have any experience with how big the spreads normally are? Is it often that you can buy them at a discount after they are issued?
Cheers


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## Naked shorts (25 November 2010)

Dont know much about cash bonds, but you mentioned that a 6month term deposit is 6%.... can you get a 5 year term deposit that is paying 6% p.a? there may be a difference there. might be worth looking up and understanding the "yield curve" for that one.

Also, I think that bond holders have debt seniority over term deposit holders.


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## boofhead (25 November 2010)

The CBA bonds ranked below that of depositors.

People buy the bonds for various reasons. One could be hoping the 90 day rate moves upwards a bit.


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## Tysonboss1 (25 November 2010)

tothemax6 said:


> Hi all,
> I've noticed some bonds available for sale recently, and since I know very little about bonds (and I couldn't find much in this forum) I was wondering if anyone here buys these? The two I saw were the Combank retail bonds (~6%, 5yrs) and the Healthscope notes (~11%, 5.5 yrs) (both to be ASX listed). Both have smallish minimums (5k).
> So my questions are, who would buy the comsec bond when you can place a 6month term deposit for about the same interest rate? Also, to sell the bonds once you have them, does anyone have any experience with how big the spreads normally are? Is it often that you can buy them at a discount after they are issued?
> Cheers




Bonds are different to term deposits, 

the biggest difference is that they are tradeable and there is a chance you may be able to sell them for more than their face value in the future.

take this example,

You buy that CBA 5 year bond for $5,000 at 6% and in 1 year interest rates collapse so nobody can find any new interest bearing securities above 1%. Suddenly you are in the position where someone may pay you $5,500 for your $5000 bond.

The reverse is also true if interest rates sky rocket.


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## Tysonboss1 (25 November 2010)

boofhead said:


> The CBA bonds ranked below that of depositors.
> 
> People buy the bonds for various reasons. One could be hoping the 90 day rate moves upwards a bit.




increasing rates devalue the existing bonds at lower rates, so you would be hoping that the 90 day rate drops


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## tothemax6 (30 November 2010)

OK cheers Tysonboss,
So my next question is why is the rate so high (the Heathscope notes offer 11%)? Is there much of a history of companies defaulting on the bonds they issue? The information I have is that the bonds are being issued to pay off bank debt (i.e. a debt restructuring measure), what is the significance of this?
Cheers!


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## boofhead (30 November 2010)

Risk is the big difference. CBA has better credit rating. CBA is a more trusted name etc. At the moment CBA has much more assets than Heathscope. Timing is another thing. If conditions were like the start of 2009 then maybe CBA would offer better margin much like how the hybrids offered higher rates back then.

Tysonboss1: Wouldn't you want the 90 day rate to go up? The CBA retail bond is floating rate. Possibly finding it easier to sell for a gain.


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## tothemax6 (2 December 2010)

Bump.
Yes I am assuming floating rate notes won't be affected in price much if interest rates change. 
The problem I see with buying the healthscope notes is that one can't possibly guess what interest and inflation rates are going to be in 5 years, and the note has a maturity of 5.5 years.


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## Sulieman (15 December 2010)

You have 2 extremes in terms of risk with these 2 offers. (Bond risk, not equity risk)

basically, CBA Bonds have to keep paying regardless and sit just under term deposits in terms of payout in insolvency. If CBA were to stop paying they would essentially be going out of business.

Healthscope on the other hand can cease paying id they break a number of covenants, most notably a reduction in profits of around 40%. These are ranked behind a number of other secured debt in the event of insolvency and are therefore a much greater risk to investors. Having said that, if they had issued Hybrids, hey would still rank ahead of them in terms of payout in insolvency.

The most interesting thing I found with Healthscope was that the Private Equity firm still had $1.5 Bill of their own debt behind these notes and was therefore reassured that it is relatively low risk that you would lose your capital as I would expect they would find an alternative solution to insolvency. I therefore viewed the main risk as the possibility of suspended income payments (albeit that they continue to then accrue at around 13%pa).

Having said all that, they're not giving you 11.25%pa for nothing so I would only look at this as a punt in terms of bond exposure

We ran an analysis of the two offers for clients which you can view here

fundsfocus.com.au/newsletter/2010november/cba-bonds.html

fundsfocus.com.au/newsletter/2010november/healthscope-notes.html


Re term deposit rates as a comparable on the CBA bonds - CBA 5 year term deposit rates are currently 6.40%pa (equivalent to 6.25%pa paid quarterly)

The bonds are indicating at 6.1%pa (paid quarterly) and are floating, you only need 0.25% interest rate rise to be better off and have the added benefit of not being tied in for 5 years and being able to sell these on market.

Note that the spreads on equivalent bonds, pre GFC were about 0.1-0.2% over the 90 days BBSW, these are offering 1.05% over.

Hope that helps


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## Tysonboss1 (15 December 2010)

boofhead said:


> Tysonboss1: Wouldn't you want the 90 day rate to go up? The CBA retail bond is floating rate. Possibly finding it easier to sell for a gain.




yeah a floating rate is a slightly different animal to your standard bond.


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## Tysonboss1 (15 December 2010)

tothemax6 said:


> Bump.
> Yes I am assuming floating rate notes won't be affected in price much if interest rates change.
> The problem I see with buying the healthscope notes is that one can't possibly guess what interest and inflation rates are going to be in 5 years, and the note has a maturity of 5.5 years.




The main question I would be asking is whether the company is in a sound condition and can be trusted to pay interest and eventually in 5 years the principle.

The closer a bond get to maturity then the smaller the effect the interest rate will have on it's value.

For example, if you had a 30 year bond at 5% interest and the standard rate went to 10%, this bond would have a large drop in value because people have other options at 10% so would not want to pay full price for a bond at 5%.

however under the same conditions but with 1 year till maturity, people would be willing to pay a price much closer to the face value because they know that in 12 months it will be paid out.


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## tothemax6 (18 December 2010)

Tysonboss1 said:


> The main question I would be asking is whether the company is in a sound condition and can be trusted to pay interest and eventually in 5 years the principle.
> 
> The closer a bond get to maturity then the smaller the effect the interest rate will have on it's value.
> 
> ...



OK Cheers, Tysonboss


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## Tyler Durden (1 April 2012)

Hello, 

Just wanted to share an article and ask a question.



> THIS week I asked my Twitter followers where they would invest $10,000 to get a good return over 12 months.
> 
> The results weren't surprising. Almost two-thirds said they would invest in just three asset classes: property, shares or a savings account.
> 
> ...




http://www.smh.com.au/money/get-smart--the-name-is-bond-20120331-1w4zo.html

Is it true that the minimum investment amount is $500,000? I could've sworn TAH offered corporate bonds recently and the minimum amount was $5,000?


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## Bill M (1 April 2012)

Tyler Durden said:


> Is it true that the minimum investment amount is $500,000? I could've sworn TAH offered corporate bonds recently and the minimum amount was $5,000?




Depends on the issuer. I bought 10k worth of the Tabcorp Bonds and I just bought 10k worth of the AGL subordinated notes. No need to go to the big end of town and buy 500k lots as there is plenty around for smaller players like you and me.

Once they are listed on the market you can buy $500 lots too.


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## blue0810 (1 April 2012)

Tyler Durden said:


> Hello,
> Is it true that the minimum investment amount is $500,000? I could've sworn TAH
> offered corporate bonds recently and the minimum amount was $5,000?




Now you can buy   ETFs bonds  availabel on ASX: IAF,ILB,IGB


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## Starcraftmazter (1 April 2012)

Probably not a good idea to lend money to Aussie banks unless the debt is very senior.


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## Tyler Durden (6 April 2012)

Just wondering if anyone agrees with the analogy in the article?

If a person has $10,000, that they would be better off by lending it to the bank (via a bond) at, say 8% rather than putting it into a term deposit (which is essentially lending it to the bank) and getting 6%? Further, as a debt holder you rank first (or at least before depositers?) if the bank goes boo boo?


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## boofhead (6 April 2012)

Depositors have the government guarantee.

The $500,000 minimum is for many wholesale/non-retail bonds. Some of that is because of regulation in relation to prospectus etc - that is sophisticated investors vs mum and dad type investors. Government bonds have a much smaller minimum size.

There exists companies that will subdivide wholesale bonds and have minimum size of $50,000 and the likes.

I haven't heard anything recently about the idea of the government listing some bonds on the ASX.


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## cbc (26 July 2013)

Folks,

Just a simple question regarding bonds. Firstly I just want to make sure iv got this right so anyone with bond experience will helpful.

If I take out a bond,  say for a year with an interest rate of 5% then after the year I'd collect 5% return, no questions there.  If the interest rate goes down then I can sell the bond,  which will take into account the capital gains and also the amount of time I held the bond for?  Is this right?  It just seems like a low (no) risk medium reward scenario?  I mean the only way you would lose money is if the government went under?  May as well go for that extra capital gains ay?

The only reason I ask is that lots of people have asked me to put money on the market for them and I refused because I might have lost it.  However with bond trading it seems like there is no risk with the possibility of a better gain than the big 4s savings on offer.

Thoughts?


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## sydboy007 (27 July 2013)

cbc said:


> Folks,
> 
> Just a simple question regarding bonds. Firstly I just want to make sure iv got this right so anyone with bond experience will helpful.
> 
> ...




The main reason to buy bonds, especially gov bonds, is because they are counter cyclical ie when shares dive bonds generally make a capital gain since a share market fall is usually due to a fall in economic growth which means inflation starts to fall so interest rates are lowered.

That's how the fixed rate bonds work.  Floating rates give you a set margin above the 90 / 180 day BBSW.

Personally I think fixed rates are great when the economy is chugging along nicely, floating rates are best to buy when the economy is bottoming out.  The way I see it with floating rate bonds you get a higher real yield when interest rates are lower.

There are some ILBs - inflation linked bonds - offering a yield to maturity of 6.7-7% which to me is a no brainer for an SMSF.  Little to now risk with a relatively high yield for 10-17 years aint a bad option.


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## cbc (27 July 2013)

Thanks Syd for ur reply.

I'm going to look into it m8.  Sounds like you could almost 'straddle' ur position by buying floating and fixed with the possibility of a capital gain in either direction.


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## sydboy007 (27 July 2013)

cbc said:


> Thanks Syd for ur reply.
> 
> I'm going to look into it m8.  Sounds like you could almost 'straddle' ur position by buying floating and fixed with the possibility of a capital gain in either direction.




Best to think of bonds as providing a definite yield, rather than aiming for a capital gain.

If you are keen on bonds I'd suggest checking out fiig securities and signing up for their newsletter the wire.  It comes out each wednesday and is very informative.  As with all things financial they have a bias to fixed income / floating rates securities, but I've learned a lot from them over the last 8 months.  They can also give you an idea of some of the bonds you can invest in.  For the retail market there's probably 20-25 easily available.

On the ASX there's AKY (bonds) and AYF (hybrids) - have both in my SMSF.  They provide a good yield.  IMHO anything offering over 6% in the present market with relatively low risk is a pretty good deal.


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## sebfox (4 October 2013)

*Buying Bonds on the ASX*

Hi

I have just started looking into “Fixed Income” products and corporate bonds in particular. I am aware that these can be purchased at the initial offering or via a broker on the over-the-counter (‘OTC’) market but I also understand that some bonds can be traded on the ASX. 

It seems preferable to me to be able to buy the bond on ASX as the trading costs via an online service are lower and are known whereas via a specialist broker no firm costs are quoted i.e.: it will only be a percent or so (which is too vague for my liking). Also a percent is quite a lot if as in my case I may only hold the bond for a year or two.

Also for those that are traded on the ASX you can see how liquid they are, so by choosing a heavily traded one you would have the option of being able to get out and sell the bond at short notice. I understand that you can sell your OTC bonds as well but you are up for another percent or so when you do that and also there is no guarantee as to how long the sale process make take (I don’t know how liquid the parcel of bonds I have purchased through them are).  

I subscribe to a research news letter that provides some information on ASX traded bonds.

So are there any advantages in using a specialist broker? E.g.: The range of bonds that they have access to? 

Thanks


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## sydboy007 (4 October 2013)

*Re: Buying Bonds on the ASX*



sebfox said:


> Hi
> 
> I have just started looking into “Fixed Income” products and corporate bonds in particular. I am aware that these can be purchased at the initial offering or via a broker on the over-the-counter (‘OTC’) market but I also understand that some bonds can be traded on the ASX.
> 
> ...




TBH not exactly sure.  I don't think there's many true listed corporate bonds on the ASX.  Most of them are hybrids.

Fed Goverment bonds are now on the ASX, but they provide pretty slim yield.

I was hoping with teh changes planned to be made in relation to corporate bonds we might eventually have a good listed bond market, but the changes have now lapsed due to the election and so far it doesn't seem to be on the Coalitions radar 

I feel we're so far behind the USA / japan / Europe in regards to listed corporate bonds.  They're perfect within a SMSF.

I can highly recommend FIIG securities.  They're really helpful and can help you to buy a 50K bond holding with parcel size down to 10K


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## sebfox (7 October 2013)

*Re: Buying Bonds on the ASX*



sydboy007 said:


> TBH not exactly sure.  I don't think there's many true listed corporate bonds on the ASX.  Most of them are hybrids.
> 
> Fed Goverment bonds are now on the ASX, but they provide pretty slim yield.
> 
> ...




Thanks very much for your reply. Yes I am aware of brokers such as the one you mentioned and if I could commit to being able to hold the investment for the longer term then the benefits of being able to access the OTC market and the wider selection of bonds may well justify the additional brokerage margin that one is charged.  I am assuming that the buy and sell costs of a very liquid ASX listed bond or hybrid will be less than the commission that I would pay to buy and sell via a broker. 

When I have learnt a bit more about them (so as to be able to compare apples with apples) and how to value then I will calculate what’s the better approach over a range of time periods. 

Ps. I have emailed this same question to the “Your Money, Your Call - Bonds” program on the Sky News Australia channel, so will see what they think.


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## Garpal Gumnut (16 August 2017)

Is anyone on ASF interested in Bonds atm, thinking more of Oz Govt. Bonds for the coming Apocalypse. 

Any experience in buying or selling them, how to go about it, any tips etc. 

Not an exciting subject but any advice welcome. 

I've been through the ASX site primer on bonds, but looking more for practical experience of ASF members.

gg


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## Triathlete (16 August 2017)

The only bonds I have are corporate bonds and deal through www.fiig.com.au
Starting portfolio needs to be $50k then can add in 10K lots.


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## galumay (16 August 2017)

I also used to hold some corporate bonds through FIIG. In the end I decided it was the epitome of worsification and got out of them. Govt bonds are even worse, not sure they would be much use in an apocalypse! Maybe you could burn them to fend off the zombies?


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## Value Collector (16 August 2017)

Garpal Gumnut said:


> Is anyone on ASF interested in Bonds atm, thinking more of Oz Govt. Bonds for the coming Apocalypse.
> 
> Any experience in buying or selling them, how to go about it, any tips etc.
> 
> Not an exciting subject but any advice welcome.




The closet thing I have to Bonds is some 5 and 3 year loans I made on Rate Setter at between 8% - 9%

I am using it as a way to hold part of the cash reserve that I live off, it pays Principle and interest payments back to you monthly.


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## john5 (16 August 2017)

im interested but dont know enough about them yet, i know people buy and sell them and (i think) can make a profit on that, i really just want to be able to have an income effective way to store cash while on the hunt for my next opportunity/waiting for the price to be right


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## Value Collector (18 August 2017)

john5 said:


> im interested but dont know enough about them yet, i know people buy and sell them and (i think) can make a profit on that, i really just want to be able to have an income effective way to store cash while on the hunt for my next opportunity/waiting for the price to be right




Do you have a home or investment loan? If so a an interest offset account is a great place to store cash short term.

Other wise I think you are basically stuck with the High interest cash accounts, which at the moment are "high interest" in name only.

The Rate setter company I mentioned above is good, but it is more of a medium to longterm thing, because your money is locked away longer, they do have 1 month and 1 year loans, but the interest rate is much lower.


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## john5 (12 September 2017)

no vc i dont have any of those, indeed my high interest savings account, these days, often finds itself below the rate of inflation, it's a borrowers market ...


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## Value Collector (13 September 2017)

john5 said:


> no vc i dont have any of those, indeed my high interest savings account, these days, often finds itself below the rate of inflation, it's a borrowers market ...




Have a look at rate setter.


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## Value Collector (31 January 2018)

A bond that is over 300 years old and still paying interest.


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## Miner (19 May 2019)

Folks
This is an open question for any one to respond please.
Where and how  do I buy Government and other bonds in Australia . Considering the gain is bare minimum, who are the low priced brokers if any ?
Alternatively any stocks /index fund /managed funds to buy on bonds ?


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## Zaxon (19 May 2019)

Miner said:


> Folks
> Where and how  do I buy Government and other bonds in Australia . Considering the gain is bare minimum, who are the low priced brokers if any ?
> Alternatively any stocks /index fund /managed funds to buy on bonds ?



You should be able to buy bonds on the "secondary market", just like any other share.  Firstly find a list of the bonds:


etc.

Looking it the code on your broker's site:



Press Buy.  I'm not sure how liquid the Australian bond market is, however.

There are plenty of bond ETFs.


etc

The cheapest brokers I know of are SelfWealth and CMC Markets.


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## Value Collector (19 May 2019)

Miner said:


> Folks
> This is an open question for any one to respond please.
> Where and how  do I buy Government and other bonds in Australia . Considering the gain is bare minimum, who are the low priced brokers if any ?
> Alternatively any stocks /index fund /managed funds to buy on bonds ?




Check out rate setter, it’s a good alternative to bonds in my opinion.


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## Miner (19 May 2019)

Many thanks @Zaxon  and @Value Collector for you valued feedback.


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## HelloU (19 May 2019)

Miner said:


> Folks
> This is an open question for any one to respond please.
> Where and how  do I buy Government and other bonds in Australia . Considering the gain is bare minimum, who are the low priced brokers if any ?
> Alternatively any stocks /index fund /managed funds to buy on bonds ?



was gunna say corporate bonds trade on the asx as xtb's (ticker ytm***) but i spose i am still on ignore with u ya big lug so will just randomly post that here anyway. You will need to be very aware of the payment dates unless u enjoy surprises (of the nasty kind). ur usual broker should be able to do the asx shuffle for u for ytm tickers.
(who thinks sol is still going down?)


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## Bill M (19 May 2019)

Value Collector said:


> Check out rate setter, it’s a good alternative to bonds in my opinion.



This site looks very interesting. I've read some of the FAQ's but I was wondering if there was anything that you might have found as a user that perhaps we should know about? In other words, is there anything that you find annoying or anything that you might not be happy with? Thanks.


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## Value Collector (19 May 2019)

Bill M said:


> This site looks very interesting. I've read some of the FAQ's but I was wondering if there was anything that you might have found as a user that perhaps we should know about? In other words, is there anything that you find annoying or anything that you might not be happy with? Thanks.




No nasty surprises (yet), I have been lending on there for about 2 years now. It all works as advertised, I am really happy with it.

It’s pretty straight forward, you transfer money into your holding account ($10 minimum) and then pick your lending market and loan it.

It then gets paid back to your holding account in monthly principle and interest payments, from there you can reinvest in manually, or setup auto reinvestment, or have holding account balance deposited into your bank account weekly.

———
Their management seem very switched on, I had a chance to speak with them over drinks at an investor night they invited members along too, they manage the loan portfolio and provision fund very well.


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## Zaxon (19 May 2019)

I've never been a fan of bonds.  To begin with, they're not capital secured: the value of your bond fluctuates over time, so it's an at-risk asset.  Secondly, you can get equivalent or better interest rates than government bonds in a savings account at your bank a lot of the time.  You'd need to go up to corporate bonds to do better.

If you're prepared to risk your capital, then use shares with a much higher upside potential.


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## Bill M (20 May 2019)

Value Collector said:


> Their management seem very switched on, I had a chance to speak with them over drinks at an investor night they invited members along too, they manage the loan portfolio and provision fund very well.



Hi VC, thank you for your reply, it is really helpful and informative. I looked at this a long time ago and did nothing but now with interest rates looking like dropping further this may be the product I am looking for. They sound very efficient too, cheers.


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## Zaxon (20 May 2019)

If you're going into the Peer-to-Peer lending space, there's also Wisr, which is Australian.



RateSetter is British



I haven't used either personally.


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## Bill M (20 May 2019)

This is what the Australian RateSetter site says:
---
RateSetter in Australia is an independent company, managed and majority-owned locally, although we benefit from being part of the RateSetter group.

RateSetter was established in Australia in 2012, led by our CEO Daniel Foggo, and officially launched to the public in November 2014. Importantly, RateSetter launched as the first peer-to-peer lender licensed to provide services to all Australians, not just wholesale and sophisticated investors.

https://www.ratesetter.com.au/about-us
---


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## Zaxon (20 May 2019)

Bill M said:


> RateSetter in Australia is an independent company, managed and majority-owned locally, although we benefit from being part of the RateSetter group.



Sounds like it's a franchize then.  Still, I can't buy its shares.


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## HelloU (20 May 2019)

Zaxon said:


> If you're going into the Peer-to-Peer lending space, there's also Wisr, which is Australian.
> View attachment 94794
> 
> 
> ...



OT (plenty of action happening in wzr in the pre this morning)


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## Zaxon (20 May 2019)

HelloU said:


> plenty of action happening in wzr in the pre this morning



I've chosen it as my pick for the June tipping comp, saw this thread was talking about RateSetter, so I mentioned an Australian equivalent, then decided to buy some....all this morning since 8:21 am.


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## Value Collector (20 May 2019)

Zaxon said:


> If you're going into the Peer-to-Peer lending space, there's also Wisr, which is Australian.
> View attachment 94794
> 
> 
> ...




Rate setter Australia is a separate company from the British version.

Rate setter Britain is a share holder (15%) in rate setter australia, but apart from that they are separate.

———-
The key advantage rate setter has over other peer to peer lenders is the provision fund.


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## Bill M (21 May 2019)

VC, I opened an account with them and transferred some funds in. I was going to split the loans 50/50 
1 month/5 years. The 5 year loan was filled within 2 hours, I got 7.9%. 

With the 1 Month one, I put up this AM at market and was not filled. Later I checked and there was lower offers so I went .1% lower than all of them and my order is still not filled. It has dropped from 4.5% to 3.8% in the space of a day.

2 Questions. What is the easiest way to fill a 1 Month order? 2. How does it auto reinvest when the market rates are continuously changing? What interest rate will it offer during auto invest? Especially when say several lenders are rolling over on the same day at the same time? 

Thanks for your time.


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## Bill M (22 May 2019)

OK, I managed to fill the 1 Month loan and received a rate of 3.8%. I think it was a lack of borrowers and a combination of people lowering their rates. Later in the evening someone was willing to borrow at 3.8% so I quickly matched them.

I am still not sure how they will deal with auto invest after the month.

One thing very good about the 5 year loan is that they pay you back principle and interest each Month. It is kind of like a 5 year annuity where at the end you would have received all your capital back with interest.

The platform is easy to operate too, thank you for bringing RateSetter to my attention, cheers.


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## Value Collector (22 May 2019)

Bill M said:


> VC, I opened an account with them and transferred some funds in. I was going to split the loans 50/50
> 1 month/5 years. The 5 year loan was filled within 2 hours, I got 7.9%.
> 
> With the 1 Month one, I put up this AM at market and was not filled. Later I checked and there was lower offers so I went .1% lower than all of them and my order is still not filled. It has dropped from 4.5% to 3.8% in the space of a day.
> ...




Hi Bill,
Yeah the interest rate available moves around during the day with supply and demand.

In general I have noticed the are lower in the morning as all the investors but money on the market that they transferred in over night, but usually tick up into the afternoon as borrowers come on and take out loans.

3.8% is pretty high for the 1 month, it’s been around 2.9% most of the time recently.

For reinvestment, I usually set it to market rate that way it’s definitely gets filled, because otherwise it can sit there for to long if the market moves, also they watch the reinvestment options set to market rate, and give them priority.

I have my five year loans set to auto invest the capital, and the interest goes to my holding account and is swept to my bank account every Tuesday.


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## Value Collector (22 May 2019)

Bill M said:


> OK, I managed to fill the 1 Month loan and received a rate of 3.8%. I think it was a lack of borrowers and a combination of people lowering their rates. Later in the evening someone was willing to borrow at 3.8% so I quickly matched them.
> 
> I am still not sure how they will deal with auto invest after the month.
> 
> ...




Yeah, loans depend on having borrowers available, and they come and go throughout the day.

Also, you may notice that borrowers appear on the screen in green normally just below the lowest rate offered by lenders, the loan will sit there for 2 hours waiting to see if any lender is willing to jump the que and take the offer,

But after 2 hours the loan automatically rises up and is filled by those lenders in the que at higher interest rates.

The automatic reinvest just automatically gets put in the que at about where the market is sitting, but it is monitored by staff to make sure it doesn’t sit there to long, so rate will be adjusted to make sure it lends within about 24 hours.


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## Triathlete (1 June 2019)

For Corporate bonds try

www.fiig.com.au


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