Somerset Smith Partners > Interest Bearing Securities

Interest Bearing Securities

Investors looking for regular income invariably look to interest bearing securities.

There is a wide range of interest bearing investments available. They range from NZ Government Stock (which offers the highest security available from a NZ based issuer), Local Authority Stock, corporate bonds and capital notes, debentures, and term deposits.

It is important that investors carefully consider the merits of every investment before committing their hard earned capital, because each investment will be different in terms of security, maturity, repayment terms, and interest return. The old saying “the greater the return, the greater the risk” should be considered. In our experience, most fixed interest investors are seeking security of capital, and a sound return on their capital.

Considerations should include:

  • issuer – who am I loaning my money to?
  • interest rate
  • security offered
  • negotiability (the ability to sell or realise the investment should your requirements change. Debentures and bank deposits are not marketable).
  • interest payment dates, which will provide regular cash flow
  • maturity dates, to ensure that investors have a suitable spread of investments over several years thereby smoothing the interest rate return and providing certainty of income

Sound opportunities exist for both short and long term investments, and our experienced and qualified advisers can advise you on the most suitable options for you.

We suggest that you contact us to discuss your options. It pays to check with us first.

For a no obligation, confidential discussion about your investments and how we can help grow your wealth … Call our Financial Advisers today on (06) 835 3126

Read more about our Financial Advisers here

 

Disclaimer:
Where we provide any advice on this website, it has been prepared without considering your objectives, financial situation or needs. Before acting on any advice on this website, you should consider its appropriateness to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. You should also obtain professional advice tailored to your specific circumstances and needs prior to making any investment decisions. Past performance of any product described on this site is not a reliable indication of future performance. If you require advice on the purchase of particular investments please contact a Somerset Smith Partners adviser.

Portfolio Management Login

To login to your Portfolio Management area, please go here

About Somerset Smith

"A proven record of assisting investors create and maintain wealth"

Somerset Smith Partners is an NZX firm with offices in Napier and Havelock North.

Learn more

Contact Us