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HOW IT WORKS


Finally, the senior secured and high yield corporate bond market is now accessible to the individual investor.

You no longer have to have millions to gain access to this exclusive asset class.

Here at WiseAlpha we are liberating this multi-trillion market for the masses so people can earn high quality fixed income by investing through our Notes and other WiseAlpha Products.

Getting started on our Notes Market

Open account
1

Open an account

Whether you want to invest as an individual or a company we offer an account that can fit your needs.
Add funds
2

Add funds to your account

Transfer money into your account via debit card or bank transfer.
Select investment
3

Select your investments

Choose individually or use Robowise to automatically diversify your money across different investments.
Receive interest
4

Receive interest income

1% Annual Service Fee is taken based on all amounts invested and taken only when interest payments are made.
Sell investment
5

Sell your investment

Receive your capital and accrued interest back by selling your investments to another user. 0.25% Sale Fee based on the principal amount of the investments that are sold.

Core focus: Senior Secured Corporate Bonds

High quality borrowers

Completely established blue-chip companies with annual revenues of between £100m and several billion pounds

Comprehensive due diligence

Each bond structured by a global investment bank with due diligence carried out by leading UK accounting and law firms

Asset Security

First ranking charge over the assets and a pledge over the company shares

Typical Borrower Structure

Senior secured corporate bonds are the most secure capital piece and have first priority over any unsecured high yield or mezzanine debt and equity holders
*Typical borrow structure example

40%

20%

40%

Senior Debt

Junior Debt

Equity

Types of investment

Man jumping

SENIOR
SECURED BONDS

A bond in its simplest form is a debt security issued by a government, company or other institution.

Interest payments

  • Interest every 6 months
  • Fixed rate of interest

Capital repayments

  • Capital paid back at maturity or earlier
Young lady

HIGH YIELD
UNSECURED BONDS

A corporate takes out an unsecured bond from a syndicate of lenders which is sold in the international capital markets by global investment banks.

Interest payments

  • Interest every 6 months
  • Typically fixed rate

Capital repayments

  • Capital paid back at maturity or if earlier subject to a price premium (an early repayment penalty above the face value of the bond)
  • Maturities tend to be between 7-10 years

Key FAQs

We're the UK's leading digital bond market giving investors access to the world of corporate bonds. Our members can invest in well known British brand name companies via our Notes (fractions of bonds) or our other WiseAlpha Products..

Our members can choose from different WiseAlpha Products.

Members can invest in fractions of corporate bonds through our Note(s). References on the WiseAlpha platform to corporate bonds are our Notes.

Members can also invest in our managed Smart Interest Bond product which offers different fixed rates for terms between 1, 3, 5 and 7 years. This product is also available for IF ISA and SIPP account holders.

As a member you are not 'lending' to a corporate borrower. Instead, you are investing in fractions of corporate bonds via our Notes which are further described here. It is important that you read the Risk Statement, Investor Agreement and FAQs before investing.

When investing in our Smart Interest bond product you are investing in a bond issued by WiseAlpha Investments that invests the proceeds in a diversified portfolio of corporate bonds.

A default is when a bond issuer has not met one or more covenants or scheduled payments under its bond agreement. Usually a bond issuer will inform its investors prior to when a default happens that this may occur. In this instance the bond agreement is usually amended by consent of the required number of investors but in the event this does not happen and an issuer breaches a covenant or payment it will be in default and investors can enforce their security over the assets of the company.

WiseAlpha as holder of the underlying bond will vote on any amendments to bond agreement and update our Note holders with any changes to the economic terms of your Notes as a result.

WiseAlpha utilises the services of Global Custodial Services Limited (“GCS”) to provide a segregated client account (held with Santander plc) for un-invested members' cash. GCS is authorised and regulated by the FCA to hold client money. WiseAlpha Limited, which issues the Notes for our members to invest in holds the bonds it acquires with global bank custodians in the same way as a fund.

The following Fees apply to the Notes product. Fees for other WiseAlpha Products are listed on those product pages.

1% Annual Servicing Fee

Based on all amounts invested and collected when the borrower makes an interest payment.

Sale Fee

Payable if you sell any of your investments to other investors prior to maturity.

If members sell their Notes on the secondary market, WiseAlpha charges the member a 0.25% Sale Fee based on the principal amount of the Notes that are sold. We only charge the Sale Fee if your Notes are purchased by WiseAlpha on the basis described here, and we deduct this Sale Fee from the proceeds of the sale.

Taxation

WiseAlpha does not withhold any tax so any income you earn should be included in your annual tax return.

It is our understanding that interest on WiseAlpha investments is subject to taxation while capital gains on principal repayments and liquidation distributions are not. You should consult an independent financial advisor or tax advisor if you have any tax related questions pertaining to your personal tax circumstances.

Members wishing to sell their investments prior to their maturity dates can do so by creating a sell order on the Market page or relevant product page. Liquidity on our secondary market is dependent on there being an available and willing buyer at the market price. You will receive your cash in your account once another member has purchased the investments you are selling. To date everyone who has wanted to sell their investments has been able to do so.

WiseAlpha charges a 0.25% discount ("Sale Fee") to the prevailing market price on the amounts sold.

The information presented here is for informational purposes only and is not investment advice, guidance, or a guarantee of the performance of any Note or portfolio and may not be relied upon. You should seek independent financial advice if you are unsure about whether WiseAlpha is suitable for you.

Capital at risk. No FSCS cover. See Risk Statement.

 

Please note as a WiseAlpha member you are not lending directly to the corporate borrower. Instead, you are investing in a Participation Note, or “Note”, which corresponds and is backed by a specific bond investment made through the WiseAlpha platform reflecting the key economic terms of the investment.

WiseAlpha Technologies Limited (FRN: 751087) is authorised and regulated by the Financial Conduct Authority in the UK.
WiseAlpha Technologies Limited is a company registered in England, with its registered office at Level 39, One Canada Square, Canary Wharf, London E14 5AB (Company No. 08967521).
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