Learn • Cash Flow Bonds
Understanding Investment Risk
A fixed rate tells you what the issuer owes. Understanding risk helps you consider whether it can pay.
A fixed interest rate makes the terms easier to understand. It does not make an investment risk-free.
The issuer must be able to pay
Cash Flow Bonds depend on PIC Diversification Fund, LLC meeting its obligations. Borrower defaults, investment losses, operating costs or insufficient cash could affect its ability to repay principal and interest.
The offering circular describes an early-stage business, limited operating history and going-concern uncertainty. Experience elsewhere in the affiliated group does not guarantee this issuer’s performance.
Understand what you own
Your bond is an unsecured promissory note. Even when an underlying loan has collateral, you do not receive a direct lien on that property or business asset. Collateral can also lose value or take time and money to recover.
Access and purchasing power matter
A contractual repayment deadline does not remove the possibility of late payment or default. Cash Flow Bonds have no public trading market, and you should not assume you can sell them to another investor.
Inflation can reduce what your money buys. Wider economic changes can affect borrowers and the issuer even if your account does not show a changing market price.
Look at your whole picture
Consider how much you can afford to lose and when you may need the money. Investing in one issuer is not the same as owning a diversified portfolio. Cash Flow Bonds are not FDIC-insured, and some or all of your investment could be lost.
Start with the Risk Factors section of the offering circular.
Sources and further reading
Your next chapter starts small
Make room for what matters.
Open to everyday investors. Start with just $10*.
I like looking beyond the balance. Your investment helps fund real estate and small businesses in our communities.
Learn • Cash Flow Bonds
Understanding Investment Risk
A fixed rate tells you what the issuer owes. Understanding risk helps you consider whether it can pay.
A fixed interest rate makes the terms easier to understand. It does not make an investment risk-free.
The issuer must be able to pay
Cash Flow Bonds depend on PIC Diversification Fund, LLC meeting its obligations. Borrower defaults, investment losses, operating costs or insufficient cash could affect its ability to repay principal and interest.
The offering circular describes an early-stage business, limited operating history and going-concern uncertainty. Experience elsewhere in the affiliated group does not guarantee this issuer’s performance.
Understand what you own
Your bond is an unsecured promissory note. Even when an underlying loan has collateral, you do not receive a direct lien on that property or business asset. Collateral can also lose value or take time and money to recover.
Access and purchasing power matter
A contractual repayment deadline does not remove the possibility of late payment or default. Cash Flow Bonds have no public trading market, and you should not assume you can sell them to another investor.
Inflation can reduce what your money buys. Wider economic changes can affect borrowers and the issuer even if your account does not show a changing market price.
Look at your whole picture
Consider how much you can afford to lose and when you may need the money. Investing in one issuer is not the same as owning a diversified portfolio. Cash Flow Bonds are not FDIC-insured, and some or all of your investment could be lost.
Start with the Risk Factors section of the offering circular.
Sources and further reading
Your next chapter starts small
Make room for what matters.
Open to everyday investors. Start with just $10*.
I like looking beyond the balance. Your investment helps fund real estate and small businesses in our communities.