best fixed rate bonds 2021
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Welcome to my review for a fixed rate bond and loan note investment I recently discovered. I’ve been searching for a high yield fixed rate bond for many years now, and only ever been disappointed by meagre returns of less than 2% per annum. In 2019 I found a fixed rate bond but then in 2021 I found (and invested in) a loan note with much higher returns.
What returns are we talking about here?
There are 2 investments that work in a similar way, but pay slightly different returns. The first is a fixed rate bond, which pays up to 2% per month. The second is a loan note that pays 4% per month for investments of less than £500,000 or 6.5% per month for investments above that level.
Key Features
- Fixed Monthly Return
- Strong track record
- Sophisticated investors only
- 6 or 12 month fixed term
- Minimum investment £$€100,000
- Returns begin after 3 months (first 3 months roll up and paid at once) then monthly thereafter for reaming term.
>>> Please Contact Me To Find Out More About These 2 Investments <<<
Frequently Asked Questions
Here are some of the frequently asked questions for these fixed-rate bond and loan note investments.
What Is A Fixed Rate Bond?
A fixed rate bond is a type of debt instrument with a fixed coupon (interest) rate, as opposed to a floating rate note. This is also similar to a loan note, both of which are described in the video above.
Both of these debt instruments are a long term debt paper that carries a predetermined interest rate. The rates on each investment described above are different, but crucially, they are fixed at the outset and will not change during the course of the investment term. The interest rate is known as “coupon rate” and interest is payable at specified dates (monthly or quarterly) before bond maturity.
What Is The Minimum Investment Amount?
The official minimum investment amount is £100,000. However, through aggregation of funds by Protecting Wealth (the introducing broker) it is possible to invest with sums in the region of £50,000.
Are There Any Fees Or Charges For Investing?
The fixed rate bond does carry an arrangement fee (all fees are disclosed on the invetment summary, which will be provided by Protecting Wealth). The loan note does not have any fees or charges attached to it, although if the trust company is used to aggregate the funds there may be handling fees charged by the trust company. Again, these will be outlined by Protecting Wealth.
Do These Fixed Rate Bonds Have A Capital Guarantee?
Your invested capital is not at risk as far the generation of returns is concerned – they both offer a capital guarantee. As discussed in the video, as will all bonds and loan notes where funds are being aggregated, there is the possibility of misappropriation of funds. Each investment takes steps to mitigate these risks, and you can discuss this further with Protecting Wealth.
What Is The Annual Return Of These Investments?
Each of the 2 investments is different, and higher interet rates might be available for larger investment sizes. However, the standard rate of returns is 2% per month on the fixed income bond, and 5% per month on the loan note.
How Do I Find Out More About The Fixed Rate Bond?
If you want to learn more about the bond and loan note then please contact me via the contact us page and register your interest. I will then introduce you to Protecting Wealth and they will provide more information and ask if you would like to arrange a call to discuss things further.
What Is A Private Placement Program (PPP)?
As described on this page, a private placement program (PPP) is a particular type of investment that allows access to the marketplace for trading bank assets, most commonly Medium Term Notes (MTN’s). Medium Term Notes are essentially debt notes that allow banks and other institutions to lend to customers. These debt notes initiate from governing bodies and are released to a small number of major banks at a discounted rate. From here the MTN’s can be openly traded between banks, pensions funds and other financial instituitions. Because they are released at a discounted price, there is an opportunity to buy MTN’s and sell them for a profit. The profit may only be small in % terms, but as several trades can potentially be made in a week, or even within a day, the returns can quickly accumulate. Because the trade of Medium Term Notes is essentially using arbitrage (buying for a low cost and selling for a profit) and due to the nature of transactions already having a buyer in place, the trades are very safe and considered to be low risk (assuming the platform itself is genuine).
Do You Have Access To Small Cap Private Placement Programs ($1m and above)?
Yes. If you would like to discuss a small cap private placement program investment please contact me and we can provide some options.