Mintos makes bond investments accessible to retail investors. The vast majority of bonds require high minimum investments of €10,000 or more for a single nominal investment. Moreover, many bonds, especially high-yield ones, aren’t available to retail investors at all, as they are exclusively offered through private placements. This makes it difficult for many retail investors to build a diversified bond portfolio. On Mintos, we’re changing this: You can invest in small fractions of a bond, starting from just €50, and conveniently build a diversified bond portfolio.
Mintos offers 2 ways of investing in bonds:
- Directly in bonds issued by a company or government entity. You own the bond or a fraction and receive coupon payments from the bond issuer.
When investing in direct bonds on Mintos, you may notice that their value can fluctuate due to market conditions. If you invest in a bond through the Primary Market (PM), the price at which Mintos later resells the bond can differ from the original purchase price, and the increased price will be noticed as a premium.
Why Does This Happen?
Direct bonds on Mintos are subject to supply and demand dynamics in the financial markets. Factors such as interest rate changes, credit ratings, and investor sentiment can influence bond prices. As a result, when Mintos resells a bond, the price may reflect these market fluctuations—sometimes leading to a premium, meaning the bond is sold for more than its original value. - Via bond-backed securities emitted by a special purpose entity within the Mintos group that acts as the issuer. The issuer holds the underlying bond and passes its returns to you.