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Advisers key to bond market accessibility

Financial advisers play an important role in helping retail investors gain access to the limited corporate bond market, according to a paper commissioned by the National Australia Bank.

Corporate bond offerings are still largely unavailable to retail investors, but a number of government and industry initiatives are seeing the market open up, according to a new report conducted by the Australian Centre for Financial Studies and commissioned by NAB.

In order to take advantage of the offerings that are available, the report recommends that a “knowledgeable, trustworthy financial adviser can assist with this assessment”.

In commissioning the report, NAB executive general manager, debt markets, Steve Lambert said the banking group was committed to accessibility in the corporate bond market.

“We have been advocating for the development of a deeper and more liquid retail bond market, which would benefit corporates, businesses, investors and the broader economy,” Mr Lambert said.

“For corporates, a deep and liquid corporate bond market will broaden funding sources and help facilitate growth. For investors, a fully functioning retail corporate bond market offers more choice and an opportunity to diversify investments,” he added.

The report is the third in a collaborative series by NAB and the ACFS.