XTB corporate bonds listed on Cboe

Yasmine Raso

Senior Journalist, Financial Newswire

14 December 2022

Exchange traded corporate bond products from the Australian Corporate Bond Company (ACBC), also known as XTB, have now been listed on Cboe Australia’s Funds platform as part of a partnership.

The exchange has launched a suite of products, also nicknamed XTBs, to grant retail investors democratised access to corporate bonds from four Australian companies: Aurizon, Bank of Queensland, Coles and Qantas, with no minimum investment.

XTBs aim to broaden the access to an asset class that has traditionally been overlooked for its high minimum investments, providing a known income stream and defined maturity date with the ease of holding an exchange traded product (ETP) that mirrors the experience of the underlying bond.

“We’re excited to bring our first exchange-traded bond products to Cboe Australia with XTB,” Vic Jokovic, Cboe Australia chief executive, said.

“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.”

The new series of XBTs will commence trading on 13 December on Cboe Australia, having returned between 4.49 and 6.24 per cent across the four companies as of 12 December.

“With yields at the higher end of our range, the new XTBs offer a choice of mid-term or longer-term investment horizons,” Michael Rockliff, Head of Distribution at XTB.

“XTBs allow investors to lock in a known return before they invest1 – a characteristic intrinsic to fixed income investing, but otherwise difficult to achieve through other exchange-traded instruments.”