Short answer: Yes. Over-the-counter Australian bonds can be sold before maturity through a dealer, usually settling two business days after the trade (T+2). You get the market price at the time, which can be above or below what you paid. 219 of the 360 AUD bonds on Candour Capital's range have A$500 million or more on issue, the size that usually trades most easily.
| If market yields | 5-year 5.00% fixed bond | Floating rate note |
|---|---|---|
| Rise 0.50% | falls to about 97.84 | barely moves: the coupon resets quarterly |
| Fall 0.50% | rises to about 102.22 | barely moves |
| Issuer's credit spread widens | falls | falls |
| Amount on issue | Bonds |
|---|---|
| A$1 billion or more | 101 |
| A$500 million to A$1 billion | 118 |
| Under A$500 million | 141 |
Large big-four and major bank issues trade most often. Smaller or less-known bonds can take longer to sell or need a lower price.
If you hold to maturity and the issuer does not default, you get back 100 per 100 face value, whatever the price did in between.
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.