Corporate Bonds and Fixed Income
Wholesale access to Australian corporate bonds, new primary issuance and government paper. Each holding sits in your name, with a known issuer, a known coupon and a known maturity date.
Why bonds
The oldest instrument in an institutional portfolio, and the hardest to buy properly
Barker Wealth gives wholesale investors direct access to individual corporate bonds rather than a product built on top of them. Each holding is sized inside a documented portfolio, not sold to you in isolation.
The access problem
Why most Australian investors never own a real bond portfolio
Australia's corporate bond market trades over the counter. It is deep and liquid at the institutional end, and largely closed to retail investors. Minimum parcel sizes commonly run to $500,000, and it is rare for a corporate issue to be structured for retail participation at all.
Wholesale investor status changes the arithmetic. It opens the over-the-counter market at parcel sizes that make a diversified portfolio of individual bonds practical, and it lets you fix a yield to maturity at the point of purchase.
What investors substitute instead
- A bond ETFThe average of an index you did not choose, with no maturity date
- A hybridEquity risk wearing a fixed income label
- A term depositOne bank's balance sheet at that bank's price
What we access
Four ways into the fixed income market
Wholesale corporate bonds
Direct access to the over-the-counter market. Senior secured through to subordinated notes and floating rate notes, across banks, listed corporates, property and infrastructure.
Primary issuance
New issues reviewed as they come to market, with the term sheet, the credit analysis and the case against, in time to act.
Government and semi-government
Australian Government Bonds, exchange-traded Treasury Bonds, Treasury Indexed Bonds and state semi-government paper, for sovereign credit quality as a defensive anchor.
Portfolio construction
Duration, credit quality and maturity ladders set inside a documented asset allocation, not bought in isolation.
A distinction that matters
An individual bond is not a bond fund
The two are treated as interchangeable and they are not. The differences are structural, and they matter most in the years you need them to.
Four of the five run in favour of the individual bond. The fifth runs the other way, and it is the trade-off you are accepting.
- MaturityRepays face value on a stated date. A fund never matures
- YieldFixed when you buy. A fund's distribution moves
- SelectionYou choose issuer and rank. A fund gives you the index
- CostOne spread at purchase, against an ongoing fee
- LiquiditySold into a dealer market. A fund redeems on demand
What you are taking on
Four risks, put in front of the yield
Credit risk
The issuer may not pay. Seniority and credit quality reduce that probability. They do not remove it.
Interest rate risk
A bond's market value falls when yields rise. The longer the duration, the sharper the movement.
Liquidity risk
Over-the-counter bonds are sold into a dealer market. In stressed conditions spreads widen and an exit takes longer than it does in equities.
Inflation risk
A fixed coupon loses purchasing power if inflation runs above what was priced in when you bought.
Indicative yields are not guaranteed. Past performance is not a reliable indicator of future performance.
Who this is for
Investors with risk concentrated somewhere else
Most of the investors we work with are business owners deploying proceeds after an exit, senior executives with complex income, or families managing multi-generational capital where preservation matters more than growth.
If your wealth already sits in one operating business, one property portfolio or one equity position, an individually selected bond portfolio is one of the few ways to add a defensive holding with a defined end date.
Wholesale investor test
- Net assets$2.5m or more
- Or gross incomeAbove $250,000 p.a., each of the past two financial years
- Certified byA qualified accountant
As defined by the Corporations Act 2001 (Cth).
How it works
Three steps, and you approve each holding
Verify and understand
We confirm your wholesale or sophisticated investor status and build a clear picture of your income requirements, your time horizons and the risk you already carry.
Research and recommend
You receive individual bonds and new issues with our credit analysis, the yield to maturity, the rank in the capital structure and the risks, alongside general advice on where fixed income sits in your portfolio.
You decide, we execute
You approve each holding. We transact through institutional platforms, administer the portfolio, track coupon dates and maturities, and report performance transparently.
Questions
Before you buy a bond
Can retail investors buy corporate bonds in Australia?
Rarely, and rarely well. Most Australian corporate bonds trade over the counter with minimum parcel sizes commonly running to $500,000, and few issues are structured for retail participation. Retail investors are generally limited to exchange-traded government bonds, bond ETFs and listed hybrids. Wholesale investor status opens the over-the-counter market at parcel sizes that make an individually selected portfolio practical.
What is the minimum investment in a corporate bond?
It depends on the issue and on how it is accessed. In the retail market minimums commonly reach $500,000 per line, which is why diversification is impractical. Wholesale parcels are materially smaller, which is what makes a portfolio of individual issuers achievable. We confirm the minimum for each bond before you commit.
Are bonds safer than shares?
They rank ahead of equity if an issuer fails, which is a structural advantage, not a guarantee. A bondholder is a lender and is paid before shareholders in a wind-up. That said, an unsecured or subordinated bond in a weak issuer can carry more real risk than a share in a strong one. The credit matters more than the label.
How are corporate bonds taxed in Australia?
Coupon income is generally assessable as income in the year it is received, and a gain or loss on sale before maturity is generally treated as a capital or revenue item depending on your circumstances. Barker Wealth does not provide tax advice. We work alongside your accountant so the structure and the ownership entity are considered before you buy.
Can my SMSF invest in corporate bonds?
Yes, where it is consistent with the fund's investment strategy and its trust deed, and where the fund meets the wholesale investor test in its own right. Fixed income with defined maturity dates is often used inside an SMSF to match known future liabilities such as pension payments.
What does Barker Wealth charge?
Our fees and any benefits we receive are set out in our Financial Services Guide, available on this website or by calling (02) 8018 8998.
Where this sits
Bonds are one part of the income picture
Fixed income is one of several ways to build a durable income stream. Investors who come to us for bonds often end up holding them alongside private credit, structured products and commercial real estate.
Read more about our Income Solutions and Structured Investments, or see how the whole portfolio fits together on our Investments page.
Find out what a bond portfolio would look like for you
A 30-minute call to establish your eligibility, your income requirements and whether individual bonds are the right way to meet them.
Barker Wealth Management Pty Ltd ABN 46 695 875 962, AFSL 700297. Suite 913/185 Elizabeth Street, Sydney NSW 2000. (02) 8018 8998. This page contains general information only and does not take account of your objectives, financial situation or needs. The investments described are available to wholesale and sophisticated investors only. Barker Wealth does not provide tax advice. Indicative yields are not guaranteed. Past performance is not a reliable indicator of future performance.