1300 130 918 mail@bondhub.com.au

Wholesale Investors

Please note: to be eligible to purchase wholesale corporate bonds via Laminar Capital’s BondHub you must be a wholesale or sophisticated client and have a sophisticated investor certificate issued to you by your accountant. More information on how to obtain a certificate can be found HERE

What is a Wholesale Investor?

Generally people buying securities and other financial products must, under the Corporations Act 2001, be given a regulated disclosure document such as a prospectus or product disclosure statement. However, the Act has some exemptions from these requirements.
Investors whole qualify as wholesale clients do not need to be issued with a full prospectus. They are however issued with what is known as an Information memorandum (IM). An IM is a shorter form document that sets out the terms and conditions of the security without going into the level of detail required by a full prospectus. This makes issuing wholesale bonds significantly cheaper, and therefore more attractive, to security issuers.

To qualify as a wholesale client, individuals and entities must meet one of the investor types outlined below:

Professional investor – A professional investor, which includes, among others, financial services licensees, bodies regulated by APRA, superannuation funds, as well as a person or entity who controls gross assets of at least $10 million (including any amount held by an associate or under a trust that the person manages).

OR

Sophisticated Investor – A person or entity that has obtained a qualified accountant’s certificate stating they have net assets of at least $2.5 million, or a gross income for each of the last two financial years of at least $250,000. The certificate lasts for two years before it needs to be renewed.

A client who meets the financial criteria specified in the Corporations Act are be required to evaluate offers of securities and financial products without the usual protection of regulated disclosure documents such as a Product Disclosure Statement (PDS). Placements and unlisted corporate bonds are issued only to wholesale clients.

Wholesale clients generally have access to a wider range of investments and products compared to retail clients.

If you qualify under any of the criteria above,  please call us on 1300 130 918 or click HERE to register.

Over the Counter Bonds - The Unlisted Bond Market

Many investors are unaware just how big the bond market in in Australia. Bonds on issue total approximately $1.5 trillion and equals the size of the equities market. Most of the bonds on issue trade only in the wholesale market known as the Over the Counter, or OTC market. Issuers are attracted to the OTC market due to the depth of the market with participants such as Bank and large superannuation funds along with the lower cost of documentation.

To access the wholesale bond market you need to transact via a specialist fixed interest broker dealer. Bond Hub is powered by Laminar Capital, one of Australia’s leading fixed income experts.Bond Hub enables investors that qualify as wholesale or sophisticated, access the OTC market in parcels as small as $50,000.

Integrated Custody

All wholesale bonds trade and settle through Austraclear, the CHESS of the fixed income world. To buys and settle a wholesale bond you either need to have an Austraclear membership or have you bonds held by a custodian on your behalf. When you transact via Bond Hub, your bonds are securely held on your behalf by Sandhurst Trustees.

Sandhurst Trustees, a wholly owned subsidiary of Bendigo and Adelaide Bank, have been providing trustee services since 1888 and have approximately $4 billion in assets under management. Bendigo and Adelaide Bank is a top 60 ASX listed Bank with total assets of $65 billion and a market cap of $5.8 billion.

All interest payments are made directly to bond holders via Sandhurst Trustees on the day the coupon payment is due. Part of the account opening process with Bond Hub includes a Custody Implementation Agreement.

Minimum Investment Amount

Wholesale bonds are generally issued in minimum parcels of $500,000 or is smaller denomination if the investor is a wholesale investor. Wholesale bonds in parcels of as little as $50,000 are available via Bond Hub when combined with our safe custody solution.

About Us

BondHub is powered by Laminar Capital, one of Australia’s leading providers of fixed income products and services.

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