Mintos Introduces High-Yield Fractional Bonds

Published 6 months ago

Mintos, Europe’s leading platform for loan investments, has introduced high-yield Fractional Bonds to its platform. This new offering broadens the scope of fixed-income securities for retail investors in Europe, allowing them to diversify their portfolios with bonds.

Making High-Yield Bonds Accessible

Traditionally, high-yield bonds have been mainly available to institutional investors or individuals with significant capital. Mintos’ new offering makes these investment options more accessible to retail investors. High-yield bonds can be purchased with as little as €50 and with no commissions. This change could revolutionize how people invest in debt instruments.

Initially, Mintos will offer investments in high-yield corporate bonds issued by lending companies on its platform. The company is also planning to expand its offering to include bonds from various industries, such as agriculture and manufacturing.

Understanding Fractional Bonds

To invest in high-yield bonds on Mintos, investors will purchase Fractional Bonds. These are asset-backed securities issued by a Mintos special purpose entity. They reflect the economic gains and capital repayments of specific underlying bonds. Through Fractional Bonds, investors can enjoy regular, fixed returns from the underlying bond. Each Fractional Bond comes with a unique International Securities Identification Number (ISIN) for transparency and traceability.

Empowering Individual Investors

The introduction of high-yield Fractional Bonds aligns with Mintos’ mission of empowering individuals to take control of their financial future. According to Mintos CEO and Co-Founder, Martins Sulte, the launch is a significant step towards providing diverse investment opportunities. It ensures all investors, regardless of their financial means, can benefit from the stability of returns and low volatility that bonds offer.