With the potential for the Federal Reserve to cut rates later this year and in early 2025, retail investors are turning to corporate and treasury bonds to lock in today's high-yield rates for years to come. Once rates are cut, yields may begin to decline steadily, so yield-seeking investors are now buying long-term bonds.
By investing in a Public Bond Account, members can easily purchase ten corporate bonds issued by companies like Boeing, Tapestry, Warner Media LLC, Main Street Capital Corp, and Vornado Realty LP. Interest earned is automatically reinvested once it reaches ~$1,000. Members also have the option to set up recurring investments in their Bond Account. The ten bonds may change over time to address changing market conditions.
"Last year, we introduced the concept of the Treasury Account: an automated investing feature that made buying T-bills an easy experience for retail investors. Due to the simple user experience and high yield of short-dated treasuries, it became the most invested-in asset throughout the year. Now we're doing the same, but for corporate bonds, where yields are higher, and the underlying investments are more diversified," said Jannick Malling, Co-CEO and Co-Founder of Public. "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."
Members can track their accrued and projected income from the Bond Account through Public's income hub, a new way to see all interest payments on the platform. In the coming weeks, members will also be able to track dividend payments, individual treasury and corporate bonds, music royalties, and the Bond Account to visualize their past and future income.
To make the bond market more accessible, the minimum investment Public requires for the Bond Account is $1,000, ten times less than single bond minimums on other platforms, which are often $10,000 or more. Fees associated with Public's Bond Account can be found here.
*Yield is as of 08/12/2024 date
** Yield is as of 08/12/2024 date
About Public
Public is an investing platform that makes building a multi-asset portfolio fast, secure, and frictionless. Members can invest in stocks, options, bonds, crypto, and 5.1% APY high-yield cash account —all in one place. Members can also access real-time and historical fundamental data and custom analysis with Alpha, the AI for investors. At Public, we're committed to creating a more transparent investing experience that is consistently aligned with our members' best interests.
Disclosures
A Bond Account is a self-directed brokerage account with Public Investing, member FINRA/SIPC. Deposits into your Bond Account are used to purchase a set of ten investment-grade and high-yield corporate bonds, which may be fractional, in equal par value allocations. Yield represents average annualized rate of return across all ten bonds, before fees, as of 08/13/2024. Since yield is subject to change daily, yield will be locked in at the time of purchase and may be different from the yield shown. Diversification does not eliminate risk. Bond Accounts are not recommendations of its individual holdings or allocations. Bond Accounts are not based on your needs or risk profile. You should do your own research before purchasing the Bond Account. Bond Accounts will not be rebalanced and allocations will not be updated in any way, except for Corporate Actions. See https://public.com/disclosures/bond-account.
Bonds and Fractional Bonds carry risks such as liquidity risk, interest rate risk, credit risk, inflation risk, loss of principal, and potential tax liabilities. Your return may be affected if you do not hold a bond to maturity, or if the issuer defaults on its obligations, calls the bond or otherwise terminates the instrument. Typically, bonds with higher yields carry greater risk of default. The bond market does not have a centralized exchange and pricing (and yields) reflect secondary trading. Bonds may be available from different brokers or dealers at prices different than those displayed. All prices are subject to change without prior notice. Public Investing earns a fee on every bond trade. Fractional Bonds also carry additional risks including that they are only available on Public and cannot be transferred to other brokerages. See risks:
https://public.com/disclosures/fixed-income-disclosure
https://public.com/disclosures/apex-fractional-bond-disclosure
Securities investments: Not FDIC Insured; No Bank Guarantee; May Lose Value.
Contact
Rachel Livingston
[email protected]
SOURCE Public
Share this article