So, Bonds are about to start trading as etf's on the ASX from today, am interested what this might mean and for some general insight into bonds.
Here is the link to the codes and bond details.
The interest rates seem to vary quite widely, even with similar expiry dates, is this the quality of the bond?
Am I right in that upon expiry the Govt will pay $100 per bond, so if in effect the bond is trading at $110 at expiry you lose $10 per bond? Conversly if it's trading at $90 you make $10?
As best as I understand it if RBA rates drop the face value of the bond will rise and if RBA rates rise the face value will decrease, so currently, over the longer term, one could argue there is greater downside risk than upside?
How would people compare the risk of a Govt bond Versus a Bank deposit in terms of risk / loss of capital?