WiseAlpha, the UK's first and only fixed income platform giving everyday investors and savers access to corporate bonds issued in the institutional debt market, is today launching an innovative retail bond product that will enable investors to customise their rate or investment term.
Smart Interest enables investors to customize their rate of interest between 3% and 8% per annum with investment terms ranging from 1-7 years. Retail investors can not only customise their fixed income returns with an attractive coupon (interest payment), but they gain exposure to the senior secured and high yield asset class that is almost exclusively the preserve of the financial elite.
WiseAlpha's investment strategists determine which institutional corporate bonds to deploy the proceeds into and the investor receives annual coupons with the full amount of investment returned at the end of the chosen term.
Since launching in June 2016, WiseAlpha has amassed more than 2,500 registered members and offered more than 55 different senior secured and high yield bond opportunities in huge brand name corporates such as Virgin Media, The AA, Pizza Express, Debenhams and Centre Parcs.
WiseAlpha sits firmly in the next evolution of the fintech space and expects corporate lending – or peer to corporate lending – to follow a similar growth trajectory to P2P lending, giving investors choice and control over their wealth accumulation. WiseAlpha believes this model is less volatile given investments are made in FTSE 350 size businesses with proven track records.
Rezaah Ahmad, CEO and founder of WiseAlpha commented:
"Today's launch of Smart Interest is one of our most exciting product launches to date. When set against the backdrop of paltry bank interest rates, Smart Interest enables all types of investor to gain exposure to high quality corporate debt in a simple, predictable way. With inflation standing at 2.9%1 and fixed rate bank savings bond rates far below inflation, the majority of savers are losing money in real terms. Smart Interest has been designed with this in mind; to offer high quality income-based investments, at a time when the retail investor community truly needs them."
"We are confident that our members will enjoy the customisable nature of our new product while being able to access the compelling yields within the institutional debt market. Until WiseAlpha liberalised this multi-trillion market for the masses this asset class was the preserve of the financial elite but we are firm believers of a fairer investment world and technology is helping us achieve these goals."