Yieldstreet, an alternative investment platform that provides access to a diverse range of assets to both accredited and non-accredited investors, says it has topped $100 million in structured note sales while revealing a new partnership with Luma Financial Technologies.
Luma is a buy-side technology platform that helps financial teams manage market-linked investments such as structured products, structured annuities, and more.
The Yieldstreet partnership expects to enable platform investors to invest in Structured Notes Portfolios while generating higher levels of income in contrast to more traditional fixed-income products. Yieldstreet will leverage Luma’s tools to allow investors to invest in, and learn, about the full product suite of Income and Growth Notes on the Yieldstreet platform.
Yieldstreet references Prospect News and the Structured Products Association that reports over $94.5 billion worth of structured notes were issued in the U.S. in 2021, up 31% from the previous year. Yieldstreet’s Structured Notes products are a portfolio of notes, with at least three notes included for diversification benefits. Yieldstreet reports that it has seen more than $100 million invested in its Income Notes since launching it one year ago. Currently, Yieldsrtreet’s Income Notes have targeted annualized net yields paid quarterly to investors that are higher than traditional fixed-income investments over terms ranging from 9 months to 2 years.
Yieldstreet has a section on its website that provides information on structured notes that explains these are hybrid securities that are issued as debt but tied to the performance of another security like shares of stock. Offering both short-term (9 months) and longer-term options, currently, the short-term structured notes are generating a 4.5% annual return.
Michael Weisz, Founder & President of Yieldstreet, commented:
“You don’t need to be an economist to see the value in opening up access to Income Notes. They can provide regular income at a level that is currently outpacing the rate of inflation even during times of market pullbacks. Our new partnership with Luma will ensure that Yieldstreet continues to offer investors the easiest and smartest way to build and manage their alternative portfolio.”
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