House Prices

Learning about shares: Few nasty surprises in fixed interest market

Barbara asks: We touched on debt securities a couple of weeks ago when we talked about asset allocation. I'm interested in learning about how they work. Can you tell me more?

Dan Dividend responds: Debt (or fixed interest) securities - despite often being viewed as the rather conservative cousin of shares - are a big part of the investment world. At last count there were

Tuesday, April 20th 2004

72 securities listed on NZX's debt market, the NZDX.

You can use debt securities to provide diversification in your portfolio as they have different risk and return characteristics to shares, so they tend to move in different cycles.

So what are debt securities?

As we touched on a couple of weeks ago, companies issue debt securities for sale to raise money to fund growth, in much the same way as they issue shares. It's not just companies in this business either - the Government also has debt securities listed on the NZDX.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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