Short answer: A fixed rate bond pays the same coupon for its whole term, so you lock in today's rate, but its price moves against interest rates. A floating rate note pays 3-month BBSW plus a margin, reset each quarter, so its price barely moves with rates but your income falls if rates fall. Of the 360 AUD bonds on Candour Capital's range, 201 are floating, 91 fixed and 68 fixed until a call date, then floating. 3-month BBSW was 4.83% on 2026-10-26; 2-, 5- and 10-year Australian Government bonds yielded 4.92%, 4.96% and 5.28% on 2026-10-21.
| Fixed rate | Floating rate | |
|---|---|---|
| Coupon | Same for the whole term | 3-month BBSW + margin, reset quarterly |
| If rates fall | Income unchanged; price rises | Income falls; price steady |
| If rates rise | Income unchanged; price falls | Income rises; price steady |
| Price change if yields rise 1% | 5-year 5% bond: about -4.3 points | Close to nil |
| Bonds on our range | 91 | 201 |
3-month BBSW was 4.83% on 2026-10-26; 2-, 5- and 10-year Australian Government bonds yielded 4.92%, 4.96% and 5.28% on 2026-10-21.
When longer government yields are above BBSW, the market expects rates to stay steady or rise; when they are below, it expects cuts. Fixed bonds suit investors who expect rates to fall or want certain income; floating notes suit those who expect rates to stay or rise, or want a steady price.
68 bonds on our range, mostly bank Tier 2, pay a fixed coupon until the first call date and BBSW plus a margin after it if not called.
This is general information, not a recommendation.
General information only. It does not take into account your objectives, financial situation or needs and is not a recommendation. Investment opportunities through Candour Capital are for wholesale and professional investors only. Read the offer documents and seek professional advice before investing.