When investors refer to purchasing "Commonwealth Bank bonds," they are typically referring to debt securities—such as floating rate notes, subordinated notes, or other fixed-income products—issued by the bank and traded on the Australian Securities Exchange (ASX). Unlike a standard term deposit, these are investment products that carry market risks, and their value can fluctuate based on interest rates and market demand.
Because these instruments are traded on a secondary market, you access them through a brokerage platform rather than a standard bank savings account. You will need an active CommSec trading account to view available securities, review their specific terms (such as maturity dates and coupon rates), and execute a buy order during market hours.
Key Trading Information
| Category | Details |
|---|---|
| Access Method | CommSec website or CommSec app |
| Processing Time | Real-time execution during ASX hours (T+2 settlement) |
| Eligibility | Australian residents aged 18+ with a trading account |
| Key Requirements | Linked CommSec settlement account and TFN provided |
Frequently Asked Questions
Why is the price of the bond different from the face value I expected?
Fixed-income securities trade on the secondary market, meaning their price fluctuates based on prevailing market interest rates. If market interest rates rise, the price of existing bonds often drops, trading at a 'discount' to their face value. Conversely, if rates fall, they may trade at a 'premium'. When you place an order, you are buying at the current market price, not the original issue price. Always check the 'Market Depth' in your trading platform to see what others are currently paying.
Can I sell my bond or note before it reaches maturity?
Yes, because these instruments trade on the ASX, you can generally sell your holding at any time during market hours. However, the price you receive will depend on market conditions at the time of the sale, which could be higher or lower than what you originally paid. Keep in mind that selling early means you miss out on any future interest payments that would have been paid to you if you had held the security until the maturity date.
How do I know when I will receive interest payments?
Each fixed-income security has a defined schedule for interest payments, which are detailed in the product's prospectus or the 'Details' section of the security in your trading platform. You do not need to do anything to trigger these payments; they are automatically deposited into your linked settlement account on the designated dates. If a payment date falls on a weekend, the payment usually occurs on the following business day.
