03/20/2025: Understanding Risk: How Secured Notes Differ from Stocks and Bonds

Investing with Confidence: Why Secured Notes Offer Stability

Investors are always weighing risk versus reward. While stocks offer growth potential and bonds provide steady returns, secured notes stand out as a unique investment option designed to offer security and stability. But what exactly makes secured notes different?

  1. Lower Volatility
    Unlike stocks, which are subject to daily market fluctuations, secured notes offer fixed, predictable returns. This makes them an attractive choice for investors looking for steady income without the stress of market swings.
  2. Capital Protection
    Secured notes are backed by collateral, meaning investors have a layer of protection in the event of default. In contrast, stocks are equity investments that can lose value if a company underperforms, and even bonds carry credit risk with no direct asset backing.
  3. Consistent Income Stream
    With secured notes, investors receive fixed interest payments, providing a reliable cash flow. Bonds also offer interest payments, but their prices can fluctuate with interest rate changes, and dividend payments from stocks are never guaranteed.
  4. Prioritized Payouts
    In the event of liquidation, secured noteholders are among the first to be paid, as opposed to stockholders who are last in line. Even bondholders, while senior to stockholders, may not have the same collateral backing as secured notes.
  5. Predictable Returns
    Stocks offer potential upside but come with high uncertainty. Bonds offer relatively lower yields, influenced by interest rates. Secured notes provide a balance—offering competitive fixed rates with a level of security not found in traditional market investments.

How Eppler Capital Funds Can Help
At Eppler Capital Funds, our secured promissory notes provide investors with fixed returns of up to 9% annually. With a focus on capital preservation and predictable income, our offerings are designed to bring peace of mind to income-seeking investors.

If you’re interested in learning more about secured notes and how they can fit into your portfolio, contact us today.

Stay informed. Stay secure. Invest with confidence.

We’d love to hear from you—what investments have worked well for you in the past?

–Craig