Robin Hood Finance Limited

benefits - What about investing?

There are several advantages for investors. This is particularly the case in markets where yields on assets are a huge multiple of pre-crunch yields. It is, however, important to identify carefully the right bonds to buy.

  1. High credit quality of securitised assets.
    The majority of bonds issued are at a high investment grade. Over 80% are still AAA.
  2. Higher yield for same rating quality.
    There are many investors who would rather buy a BBB corporate bond than a AAA securitised bond, so yields are higher for the same rating level.
  3. Access to retail assets for investors who have no retail arm (same applies geographically). This helps with diversification of portfolios, e.g. an investor can gain exposure to French mortgages without originating them himself.