Public, an investing platform based in New York, has
launched a bond account to enable investors to diversify their portfolios by
investing in corporate bonds with yields reaching up to 7.3%. According to the
company, this move provides a timely opportunity for yield-seeking investors to
secure long-term gains.
Diversified Bond Investing
Public’s new bond account reportedly offers a way to
invest in ten corporate bonds issued by well-known companies from various
industries. These bonds, which offer yields ranging from 6% to 9%, provide
investors with an opportunity to diversify their portfolios without the need to
individually select and purchase bonds.
This offering includes bonds from prominent companies such as Boeing, Tapestry, Warner Media LLC, Main
Street Capital Corp, and Vornado Realty LP. This selection aims to enable users
to spread risk.
Commenting about the new offering, Jannick Malling,
the Co-CEO and Co-Founder of Public, said: “As rates potentially come down
later this year and into next year, we are hearing from investors who want to
lock in a higher yield now, and our Bond Account allows you to invest in the
bond market in just a few clicks.”
The timing of the Public’s Bond Account launch aligns with
the anticipation of potential rate cuts by the Federal Reserve in late 2024 or
early 2025. Once rates begin to fall, bond yields are expected to follow suit,
making the current environment particularly attractive for long-term bond
investments.
Accessibility
The Public has designed its Bond Account to be both accessible and user-friendly. The minimum investment is just $1,000, significantly lower than the $10,000 minimum often required by other platforms.
Interest earned on the bonds is automatically
reinvested once it reaches approximately $1,000, allowing for seamless
compounding of returns. Investors can also set up recurring investments to grow their bond portfolio further.
Public’s Bond Account is part of a broader strategy to
make diverse asset classes more accessible to retail investors. This follows
the success of their Treasury Account, which simplified the process of
investing in U.S. Treasury bills and quickly became a popular choice among
investors.
In May, Public launched fractional bond trading to
enable investors buy and sell corporate and Treasury bonds in smaller
denominations. The offering enables users to invest in bonds for as little as
$100, lower compared to the minimum investment requirements in the bond market.
This article was written by Jared Kirui at www.financemagnates.com.
Source link
