Treasury investments

Influences such as seasonal markets, financial resources and the constantly changing face of commercial markets mean that every business has unique requirements for cash management and investment. That's why St.George offers a wide range of flexible and convenient investment options.

With a choice of high yielding investments, we can provide a competitive solution that can meet your needs for cash flow management, at call access and short or longer-term returns on invested funds.

Our range of investment products is extensive and includes:

• Term Deposits
• Call Accounts
• Bank Bills
• Negotiable Certificates of Deposit (NCD)
• Specialised Investments -
  • Mortgage Backed Securities
  • Fixed Interest Securities
  • Forward Rate Agreements (FRA)
  • Floating Rate Notes (FRN)
  • Options

 Term Deposits

• Secure investment
• Fixed interest rate
• Terms from 30 days to 5 years

 Call Accounts

• High interest rate
• Funds at call

 Bank Bills

A bank bill is a bearer instrument and a negotiable security with terms from 1 to 6 months. The minimum investment at St.George Bank is $500,000 and thereafter-in multiples of $100,000.

Bank Bills are issued at a discount to Face Value.

Want to know more? Here are some Frequently Asked Questions about Bank Bills.

 Negotiable Certificates of Deposit (NCD)

NCDs are available for investments over $1,000,000. Like bank bills they are bearer instruments issued at a discount to face value and are negotiable securities. St.George will issue NCDs for terms up to 1 year.

 Specialised Investments

 Mortgage Backed Securities

These are similar in their structure and trading to FRNs. However, they represent a securitisation vehicle used within financial markets to fund home loan mortgages, in-store credit cards and similar instruments.

A good example of these securities is an issue called Crusade Trust, used to fund the Great Aussie Home Loan product of St.George Bank Limited. Backed by a parcel of the mortgages, these securities represent minimal risk as they have been credit-enhanced by mortgage insurance.

As a result, almost all enjoy a 'AAA' credit rating. Margins-to-coupon for MBSs are generally higher than for FRNs.

 Fixed Interest Securities

Commonwealth and State Government Bonds

At the top of the 'risk free' tree, these securities are available for terms of up to 12 years.

Because of their low risk profile, the rates offered are often lower than other investments of comparable terms. They are however, extremely tradeable within the financial markets should you need to liquidate your investment before maturity. Bonds have a coupon attached (usually semi annual) and the yield achievable is, amongst other determinants, primarily driven by the expectation of inflation.

Corporate Bonds

These are similar to government bonds, however your risk is determined by the corporate that is issuing the bond.

 Forward Rate Agreements (FRA)

Forward Rate Agreement for Investors

Forward Rate Agreements are agreements between the bank and investor in which the bank agrees to pay the investor an agreed interest rate on a nominal principal at a time in the future.

At the same time the investor agrees to pay the bank the Bank Bill Reference Rate (BBSW) on the same nominal principal. As an investor this allows you to lock in the rate of your investment rather than be at the mercy of the markets. No exchange of principal occurs, only the difference between prevailing market interest rates and the FRA agreed interest rate is exchanged.

This product is available to approved applicants.

Want to know more? Here are some Frequently Asked Questions about FRAs. Floating Rate Notes (FRN)

Floating Rate Notes are a tradeable security that can be bought and sold at the prevailing market rate. This rate represents the premium above BBSW that the market is prepared to pay for the coupon attached to the security. These differences in premiums reflect the perceived credit risk of the FRN, the term to maturity and the market sentiment generally.

The FRN's are issued by Corporates and Banks and are rated by international rating agencies Standard & Poors (S&P) and Moodys.

 Options

Floors

Interest Rate Floors are an options based product that provide the investor with a known 'worst case' rate on a variable rate investment.

By purchasing an Interest Rate Floor, you are establishing a minimum return on a variable rate investment, thus protecting yourself against adverse interest rate movements. A premium is payable.

Want to know more? Here are some Frequently Asked Questions about Interest Rate Floors.

Need more information?

If you have any questions or want more information, you can contact us online or call us on 61 2 9320 5555.