The Australian banking sector is resilient, presenting solid opportunities for investors seeking stable, income-generating investments. Of particular value is bank Tier 2 subordinated notes. These instruments rank above shares and Additional Tier 1 Capital but below senior debt, offering investors predictable income with minimal risk of capital loss, backed by highly reputable institutions.

Traditionally, corporate bonds including Tier 2 bonds, were only available to wholesale investors. Now, the innovative Single Bond ETF, named IAM Listed Bond ETFs, makes this market available to all investors.

Single Bond ETFs provide access to a single underlying bond, without direct ownership. This means investors can benefit from returns that track those of the underlying over-the-counter corporate bond: CBA Subordinated FRN 2.05% 2033 10NC5.