Alternative investment platform YieldStreet has announced its newest offering of its short-term notes series. Investors can use this product to get an annualized yield of 4% on their investment, offering the opportunity for low-risk returns on short-term capital.
What are Short Term Notes?
A short-term note aims to accommodate investor liquidity needs while also supporting the growth of future investment opportunities on Yieldstreet's alternative investment platform. Investors can put their excess capital to good use and ensure a reliable return on their investment.
Yieldstreet has been pre-funding future offerings since May 2019 with the Short-Term Notes program before they are launched and sold on the platform. To date, over $266 million has been funded through this program across 44 offerings, with 33 repaid in full at maturity. All outstanding notes continue to perform in line with expectations.
Investment Highlights: Investors experience low risk with this offering, as the notes are secured by underlying investments that have been pre-funded. The underlying investments may include debt and equity positions across all asset classes offered on Yieldstreet.
Furthermore, Yieldstreet holds the first-loss position in every series offered on the platform. Yieldstreet purchases 5% of the aggregate notes issued in the series in a first-loss position to provide a buffer to all other investors in case of any realized loss. To ensure investor returns, Yieldstreet may use senior leverage facilities when funding an offering. In these cases, the notes would have a subordinated interest in the underlying collateral.
- Minimum investment: $500
- Target annualized yield: 4%
- Term length: 6 months
- Offering Size: $10 million
- Payment Schedule: Monthly interest
Photo by Frank Busch on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.