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Fixed Income Investments | How To Make Double Digit Returns


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We tell you all you need to know about fixed income investments. Then learn how to make double digit returns and make the right investments.

Published in: Economy & Finance
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Fixed Income Investments | How To Make Double Digit Returns

  1. 1. Webinar, June 8th, 2016 How to Make Double Digit Returns with Fixed Income Investments The #unbank
  2. 2. What are fixed income investments?
  3. 3. Fixed Income Investments are: “A type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule.”
  4. 4. Types of Fixed Income Investments - Annuities– Generally used for retirement, these are investments where you deposit some initial sum of money and then you are guaranteed a check a every month after a time period. There are some penalties with withdrawing funds early - Coupon Bonds– “bearer bonds” The coupon represents annual or semi-annual interest payments to be received until maturity. These coupons must be presented to the issuer to receive payments - Municipal Bonds– These bonds are backed by the state or local government to fund projects such as highways, school, and hospitals. They have a large minimum investment and return a specified yield after a designated period of time. - Certificates of Deposit or CD’s– FDIC insured investments that offer fixed rate of return Useful if you are looking for a time-specific savings plan or a low risk investment for your portfolio. - Money market accounts– These are like savings accounts in you can withdraw from your account a certain number of times per month. They differ because of a higher interest rate and a higher minimum balance. They are also FDIC Insured. - Treasury Bonds– Require a $1,000 minimum investment. They are fixed-interest U.S. government debt security with a maturity of more than 10 years. Interest payments are made semi-annually and the income that holders receive is only taxed at the federal level. - Peer-to-peer lending– A high-yield alternative for investors who take the time needed to understand the risks and rewards.
  5. 5. Peer-to-peer lending lets you invest in loans
  6. 6. Loans are fixed income assets similar to bonds Example 3 years 15.0% per year Monthly Characteristic Fixed term Fixed interest rate Fixed payment dates
  7. 7. Fixed income assets are balanced in risk & return
  8. 8. “I think astute investors will receive returns in the 8- 10% range, with an average return of 6-7%. We know today that many investors are earning more than that, but I think as the industry matures returns will come down. That said, I expect 8-10% returns will be achievable for many investors through the end of this decade.” Peter Renton Expected returns in P2P lending are 6% to 10%
  9. 9. How to create your P2P lending investment strategy
  10. 10. Define your personal investment criteria 1. Amount you want to invest in P2P lending and the share of your total investment portfolio 2. Diversification level of your loan portfolio 3. Time horizon 4. Risk appetite 5. Region to invest in 6. Loan use cases 7. Loan base currency
  11. 11. Personal loans for small business owners Loan amount: up to $10,000 Minimum investment: ~ $4 Term: 6 weeks to 5 years with monthly installments Interest rates: 10% to 45% p.a. Comprehensive credit check via borrowers’ business accounts (eBay, Amazon, PayPal etc.) Loans are paid out and repaid in the digital currency bitcoin, value is US dollar denominated Know the options loans give you
  12. 12. Diversification is key to successful investing ➔ Diversification jumps in at around 100 or more loans in a portfolio
  13. 13. Learn from and follow other investors ➔ Find other investors on listed loans and check their public portfolios
  14. 14. Continuously watch and analyze your portfolio ➔ Learn from your ingoing investments and continue doing what works
  15. 15. Don’t invest blindly - define your own strategy and evolve it over time
  16. 16. How to get started
  17. 17. Buy bitcoins easily with a SEPA bank account ➔ Send a wire transfer to a European bank account ➔ Get bitcoins deposited directly to your Bitbond account
  18. 18. Make your first investments
  19. 19. Global P2P lending allows you to earn the returns that banks don’t give you access to
  20. 20. INVEST TODAY 13% Expected ROI