Public, an investing platform based in New York, has launched a bond account to enable investors to diversify their portfolios by investing in corporate bonds with yields reaching up to 7.3%. According to the company, this move provides a timely opportunity for yield-seeking investors to secure long-term gains.

Diversified Bond Investing

Public's new bond account reportedly offers a way to invest in ten corporate bonds issued by well-known companies from various industries. These bonds, which offer yields ranging from 6% to 9%, provide investors with an opportunity to diversify their portfolios without the need to individually select and purchase bonds.

This offering includes bonds from prominent companies such as Boeing, Tapestry, Warner Media LLC, Main Street Capital Corp, and Vornado Realty LP. This selection aims to enable users to spread risk.

Commenting about the new offering, Jannick Malling, the Co-CEO and Co-Founder of Public, said: "As rates potentially come down later this year and into next year, we are hearing from investors who want to lock in a higher yield now, and our Bond Account allows you to invest in the bond market in just a few clicks."

The timing of the Public's Bond Account launch aligns with the anticipation of potential rate cuts by the Federal Reserve in late 2024 or early 2025. Once rates begin to fall, bond yields are expected to follow suit, making the current environment particularly attractive for long-term bond investments.

Accessibility

Public has designed its bond account to be both accessible and user-friendly. The minimum investment is just $1,000, significantly lower than the $10,000 minimum often required by other platforms.

Interest earned on the bonds is automatically reinvested once it reaches approximately $1,000, allowing for seamless compounding of returns. Investors can also set up recurring investments to grow their bond portfolio further.

Public's bond account is part of a broader strategy to make diverse asset classes more accessible to retail investors. This followed the success of their Treasury Account, which simplified the process of investing in US Treasury bills and quickly became a popular choice among investors.

In May, Public launched fractional bond trading to enable investors to buy and sell corporate and Treasury bonds in smaller denominations. The offering enables users to invest in bonds for as little as $100, which is lower than the minimum investment requirements in the bond market.