Cboe Australia has welcomed XTB’s innovative exchange-traded corporate bond products (XTBs) to the Cboe Funds platform.
In partnership with XTB, Cboe Australia has launched a series of XTBs which provide retail investors with access to corporate bonds from four of Australia’s largest companies, Aurizon, Bank of Queensland, Coles, and Qantas.
XTBs provide access to the returns of corporate bonds from some of Australia’s largest companies. Unlike bonds in the wholesale market, where minimum investments often range into the hundreds of thousands of dollars, XTBs have no minimum investment. They open up this important but often overlooked asset class to all exchange-based investors. XTBs provide investors with a known income stream and defined maturity date, by replicating the characteristics and experience of holding the underlying bond.
Cboe Australia CEO Vic Jokovic said, “We’re excited to bring our first exchange-traded bond products to Cboe Australia with XTB.
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“Investors are looking for opportunities to take advantage of the relatively high yields on offer from corporate bonds at the moment, and we’re pleased to be able to expand that access to retail investors.”
As of 12 December 2022, the XTBs offered the following yields: Aurizon 6.24%, Qantas 6.08%, Coles 4.89% and BOQ 4.49%.
XTB Head of Distribution Michael Rockliff said, “With yields at the higher end of our range, the new XTBs offer a choice of mid-term or longer-term investment horizons.
“XTBs allow investors to lock in a known return before they invest – a characteristic intrinsic to fixed income investing, but otherwise difficult to achieve through other exchange-traded instruments.”
The new range of XTBs will commence trading on Cboe Australia on 13 December 2022 and will be available through Cboe Australia market participants and supporting Australian stockbrokers.
The XTBs will trade under the following ticker codes:
– Australian Corporate Bond Trust AZJ 2.90% 2 September 2030 – YTMAZ2
– Australian Corporate Bond Trust QAN 5.25% 9 September 2030 – YTMQF5
– Australian Corporate Bond Trust COL 2.65% 6 November 2029 – YTMCOL
– Australian Corporate Bond Trust BOQ 1.40% 6 May 2026 – YTMBQ1
Cboe Australia is a regulated stock exchange committed to transforming, improving and growing Australia’s securities and derivatives markets.
