Hamilton Hindin Greene dates back to the turn of the previous century and has amassed a wealth of experience during this time.

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Fixed Interest Investment

There is a diverse range of fixed interest securities available in New Zealand for investors with an income bias. Fixed interest as an asset class includes Cash, Term Deposits, Bonds and Finance Company Debentures.

We are specialists in all fixed interest securities including Government, Council, Corporate debt and finance company debentures. As the largest securities market available, fixed interest instruments offer a plethora of choices for investors seeking price protection. The unique characteristics of the many fixed issuers in today’s market create opportunities for investors with a broad spectrum of risk/return objectives.

Bonds

In basic terms, a bond is a loan that the bond purchaser, or bondholder, makes to the bond issuer. The two major sectors of the New Zealand bond market are Government Bonds and Corporate Bonds.

The government bond sector is a broad category that includes ‘sovereign’ debt, which is issued and backed by a central government. Sovereign bonds are generally considered to have a very low default risk as is evident in the AAA credit rating of New Zealand Government Bonds.

The next largest sector of the bond markets is corporate bonds. Corporations borrow money in the bond market to expand operations or fund new business ventures. They fall into two broad categories: investment grade and unrated bonds. Unrated bonds are issued by companies perceived to have a lower level of credit quality and higher default risk compared to rated, investment-grade companies. Within these two broad categories, corporate bonds have a wide range of ratings, reflecting the fact that the financial health of issuers can vary significantly. Whilst an unrated bond indicates a higher default probability, higher coupons on these bonds often compensate for the higher risk.

Finance Company Debentures

Debentures are issued by finance companies to raise both short term and longer term funds for on lending to private and corporate borrowers. The fixed term of these investments are normally between 3 months and 5 years. A debenture investment locks the investor into a fixed term, compared to a bond which is tradable and can be liquidated at any time (subject to liquidity). At Hamilton Hindin Greene Ltd we research and review a broad range of finance companies on an ongoing basis and hold regular meetings with senior representatives of these companies to keep fully informed about the current status of their business.

We are specialists in all fixed interest securities including Government, Council, Corporate debt and finance company debentures. As the largest securities market available, fixed interest instruments offer a plethora of choices for investors seeking price protection. The unique characteristics of the many fixed issuers in today’s market create opportunities for investors with a broad spectrum of risk/return objectives

Disclaimer: While statements made herein are believed to be accurate at the time of printing, no liability can be accepted for any error or omission. Any recommendation provided in this research is general in nature and a recommendation specific to a particular client will be made only in correspondence between an HHG NZX Advisor/Associate Advisor and that client.

Disclosure of Interest: The Directors and staff of Hamilton Hindin Greene Ltd may have a professional interest and/or hold shares in any or all of the companies recommended. A disclosure statement for Hamilton Hindin Greene’s investment advisers and brokers is available on request and free of charge.