wiseAlpha, the Fintech firm that provides access to senior secured corporate debt to retail investors, is now introducing senior secured bonds from established UK brands on its platform. Any investor may now participate in assets that generate between 5% to 8% in a relatively low-risk investment. WiseAlpha points to its offerings as a “compelling alternative” to traditional savings accounts, the stock market and peer to peer lending. Investment opportunities like these are typically the realm of institutional investors or perhaps high cost funds. WiseAlpha explained the addition of senior secured bonds is a further step towards democratising the multi-trillion corporate debt market offering the retail investor the same investment opportunities as the “financial elite”.
wiseAlpha founder and CEO Rezaah Ahmad stated;
“We firmly believe that the debt markets offer some of the best and most lucrative long-term investment opportunities, which, until wiseAlpha launched, were only accessible to the financial elite, including pensions funds, investments banks and ultra high net worth individuals. In today’s market, retail investors are often crowded out of retail bond issues by institutional investors and their choice is often limited to financial based companies rather than a broad range of corporates across different sectors. In addition, the ability to purchase secured corporate bonds in small denominations has never before been possible for the private investor.”
wiseAlpha outlined the process stating investors may participate for as little as £100 – lending to large corporations. Current bond issuers on the wiseAlpha platform include Enterprise Inns, Vue Entertainment and New Look although the Company expects to add further secured corporate bonds to the platform over time.
The Secured Corporate Bond market is a different segment of the debt markets. While issuers in the mainstream retail corporate bond market are mainly focussed in the financial and insurance sectors, the senior secured bond market has a wider universe of companies, including large established brand name companies across a wide range of sectors. In the past, participation for investors would start around £100,000.
The bonds wiseAlpha will be listing on its platform are secured by the assets of the company and this collateral backing offers a degree of capital and structural protection for investors. Senior secured corporate bonds have a first ranking charge over the assets of the company and a pledge over the company shares. These are fixed rate debt instruments that pay a periodic coupon.
wiseAlpha believes that by adding senior secured corporate bonds to their platform they are offering customers an attractive fixed rate proposition for diversifying their fixed income investments. These secured corporate bonds are expected to appeal to a broad demographic of investors in the DIY lending movement looking for quality corporate income.
wiseAlpha also raised £579,000 on Crowdcube several weeks back. The offer initially sought just £350,000.
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