Yieldstreet Celebrates First Anniversary of Structured Notes with More Than $100 Million Sold and a New Partnership with Luma to Enhance Income and Growth Structured Note Offerings
Written by Chris Olson on Jun 10, 2022
Yieldstreet, a leading digital alternative investment platform, today announced its new partnership with Luma Financial Technologies, an award-winning global multi-issuer technology platform for market-linked investments. Through this partnership, Yieldstreet will empower investors on its platform to more effectively and strategically invest in its Structured Notes Portfolios. They have the potential to allow investors to earn higher levels of income compared to traditional fixed income assets and can also allow investors to participate in potential public market upswings. The structure of the notes also provides investors with a degree of protection should public markets slide after their purchase.
“You don’t need to be an economist to see the value in opening up access to Income Notes,” said Michael Weisz, Founder & President of Yieldstreet. “They can provide regular income at a level that is currently outpacing the rate of inflation even during times of market pullbacks. Our new partnership with Luma will ensure that Yieldstreet continues to offer investors the easiest and smartest way to build and manage their alternative portfolio.”
Yieldstreet will leverage Luma’s innovative, proprietary performance and portfolio analytics technology to create comprehensive, objective, and transparent tools that investors can use to more strategically invest in and learn about the full product suite of Income and Growth Notes on the Yieldstreet platform. Used by many of the world’s premier investment research and wealth management firms, Luma’s company-agnostic platform, clear pricing structures, and customizable solutions allow investors around the world to more easily manage and transact annuities and structured products.
“We’re thrilled to be partnering with Yieldstreet to collectively take another step forward in providing investors with greater objectivity, transparency and access to the structured product marketplace,” said Tim Bonacci, CEO and President at Luma Financial Technologies. “As volatility continues to reign, these investment vehicles can help to de-risk portfolios and provide a more predictable investment experience. By further simplifying and streamlining access to this useful product set, we hope to aid investors around the world in achieving better investment outcomes.”
According to Prospect News and the Structured Products Association, over $94.5 billion worth of structured notes were issued in the U.S. in 2021, up 31% from the previous year. Investors most often purchase individual notes, leading to potential over-concentration or decreased compensation.
Yieldstreet’s Structured Notes products are distributed as a portfolio of notes, with at least three notes included for diversification benefits. This innovative construction can potentially remove decision risk and help improve performance. The firm has seen more than $100 million invested in its Income Notes since launching the family of products one year ago. It is expected that the addition of Growth Notes to the platform will create additional demand, especially during these volatile times.
To date, the firm’s Income Notes have targeted annualized net yields paid quarterly to investors that are substantially higher than traditional fixed-income investments over terms ranging from 9 months to 2 years.
Yieldstreet is reimagining how wealth is created by providing access to alternative investments previously reserved only for institutions and the ultra-wealthy. Yieldstreet’s mission is to help millions of people generate $3 billion of income outside the traditional public markets by 2025. Its award-winning technology platform provides access to investment products across a range of asset classes such as Real Estate, Venture Capital, Legal Finance, and Crypto. Since its founding in 2015, Yieldstreet has funded over $2.2 billion of investments and is committed to making financial products more inclusive by creating a modern investment portfolio. The company, headquartered in New York City with offices in Brazil, Greece, and Malta, is backed by leading venture capital firms.
About Luma Technologies
Luma Financial Technologies is the creator of Luma, a fully customizable, independent, buy-side technology platform that helps financial teams more efficiently learn, create, order, and manage market-linked investments such as structured products, structured annuities, and more.
Launched in 2011, Luma is one of the largest and longest-tenured structured product platforms in the U.S. market and is used by broker/dealer firms, RIA offices, and private banks to automate and optimize the full process cycle for offering and transacting in market-linked investments. This includes education and certification; creation and pricing of custom structures; order entry; and post-trade actions. Luma is multi-issuer, multi-wholesaler, and multi-product, thus providing teams with an extensive breadth of market-linked investments to best meet clients’ specific portfolio needs. Headquartered in Cincinnati, OH, Luma also has offices in New York, NY, Zurich, Switzerland, and Miami, FL. For more information, please visit Luma’s website, or follow us on LinkedIn and Twitter.