When you invest in Fractional Bonds on Mintos, you purchase bond-backed securities. This means you won’t hold the underlying bond directly. Instead, you hold Fractional Bonds emitted by a special purpose entity within the Mintos group that acts as the issuer. The Fractional Bonds issuer holds the underlying bond, and passes on its returns to you. Fractional Bonds are only available on Mintos.
The Fractional Bonds issuer receives regular coupon payments and the principal amount of the underlying bond at maturity. These funds will then be forwarded to investors.
If an underlying bond issuer defaults on its obligations, the Fractional Bonds issuer might not receive some or any of the coupon payments or principal. In this event, you may lose some or all of the money you invested in the Fractional Bonds.