How it Works

Step 1

We buy a corporate bond for £100,000

The Fractional Bond Issuer, WiseAlpha Plc buys the targeted corporate bond for £100,000 following subscriptions received for the corresponding Fractional Bonds from WiseAlpha platform investors.

Note: Global banks control the corporate bond market and generally only allow minimum purchase sizes of £100,000+ preventing many investors from getting access.

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Step 2

Fractional Bonds are issued in 1p denominations

Investors that subscribed are issued Fractional Bonds which correspond to fractions of the relevant underlying corporate bond. Fractional Bonds pass through fully the economic returns and capital repayments of the specific underlying corporate bond. Investors therefore can gain economic exposure to a wide range of corporate bonds from some of the UK's largest companies.

Step 3

Diversified portfolio

WiseAlpha Platform Investors can buy many Fractional Bonds and create a diversified portfolio.

Benefits and Risks of Corporate Bonds

Historical Returns of UK Equities and Corporate Bonds

High yield corporate bonds have outperformed UK equities and investment grade bonds over the last 20 years both in terms of returns and price volatility. Learn more

Source: Bloomberg and ICE Data Services. Data as of 15 Jan 2020.

Past performance is not a reliable indicator of future performance. You should not rely on past performance as a guarantee of future investment performance.