just now
December 06, 2023 - Investing platform Public, has announced the introduction of fractional investment in corporate and Treasury bonds for its members. This expansion comes in response to the growing demand from investors seeking fixed-income products, providing retail investors with access to a comprehensive selection of bonds, empowering them to make informed investment decisions.
In the current landscape, where interest rates are on the rise, bonds have garnered increasing favour among modern retail investors. Historically, these investment instruments were primarily accessible to institutional investors. However, Public's innovative approach is democratising bond investing, offering retail investors an intuitive platform to explore thousands of bonds with varying rates and maturities through an advanced screener tool. Furthermore, investors can access sophisticated financial metrics to facilitate their evaluations.
Over the past year, Public has observed heightened interest from retail investors in Treasury bills and fixed-income ETFs. A recent survey by Public of retail investors underscored a growing emphasis on diversification and diligence, with many incorporating Treasury bills into their portfolios.
Jannick Malling, co-CEO and co-Founder of Public
Jannick Malling, co-CEO and co-Founder of Public, said, "For the last 15 years, the bond markets have been largely irrelevant for retail investors, but after an unprecedented set of rate hikes, retail demand for fixed income products has exploded, and investors are experiencing friction with existing offerings being archaic and having high minimums. Public pioneered fractionalization for equities, and we always wanted to broaden that feature to more asset-classes. After launching treasury bills earlier this year, we're now doubling down by reimagining the entire user experience of how retail finds, evaluates and invests in the full universe of corporate and treasury bonds."
Sam Nofzinger, GM of Brokerage at Public, added, "Historically, direct bond access has been limited to institutions and high-net worth (HNW) investors. Providing our members with the tools and information to invest in these securities will help them to continue to diversify their portfolios and construct unique bond strategies that fit their needs - just like institutional investors."
Bill Capuzzi, CEO of Apex Fintech Solutions, lauded Public's commitment to enhancing the investor experience, saying, "Public, like most fast-growing fintechs, brings so much value to their clients, and we each contribute a different perspective and skillset to the common goal -- creating a frictionless experience for all investors. Apex, the core engine powering many of the critical functions needed for fintechs to operate, is driven to help our clients solve these important problems. We were thrilled when Public approached Apex to build the backend infrastructure for its fixed-income solution. Public's speed-to-market has been impressive to watch, and we're excited for both Public and its members to access the full breadth of the bonds market."
Within the Public platform, members can view and select from a vast array of bonds, encompassing corporate and Treasury bonds, as they construct their fixed-income strategy within a diversified portfolio.
Starting today, investors can access the bond screener page, initiate a watchlist, and be among the first to invest fractionally in corporate and Treasury bonds. This feature will soon be accessible to all members.
The most popular corporate and Treasury bonds will be available for fractional purchase, addressing the common issue of high bond minimums, which often exceed thousands of dollars.
Public also has plans to introduce municipal bonds to the platform in early 2024.
