Investors can now access corporate bonds previously only available to pension funds and investment banks in firms such as Tesco and Ocado.
Online lending platform WiseAlpha is adding corporate bond and loan investments to its platform.
Retail investors can now access Tesco’s £300m institutional bond that has a 4.8 per cent return.
Users can buy the debt for as little as £100 and cash in their bonds via the secondary market on the platform. The grocers bond matures in 2042.
“Our investments in large, established brand name companies such as Tesco, will appeal to the retail investor looking to do more with their money and earn a regular contractual income without taking the same price and volatility risk as the shares,” said Rezaah Ahmed, CEO of WiseAlpha.
Started in 2016, the firm gives retail investors access to corporate debt that previously was only available to pension funds, investment banks and high net worth individuals. It has a team that picks investments in blue-chip companies, with loans secured on the assets of the company.
Investors can choose from a variety of different investments, with some generating a yield as high as 9 per cent.
Other types of corporate debt available on the site include bonds from restaurant Wagamama, online grocer Ocado, and cinema operator AMC.