Citigroup Teams With YieldStreet To Offer Credit Investments

Citigroup (NYSE:C) has entered into partnership with YieldStreet, a digital wealth management platform, to offer its credit investments to a wide range of individual investors.

Based in New York, YieldStreet has originated more than $1.2 billion of investment opportunities since its launch in 2015. It seeks to enable individual investors to access investments across a range of asset classes such as Real Estate, Marine Finance, Art Finance, Legal Finance and Commercial loans.

Citi’s Spread Product Investment Technologies (Sprint) unit, created in 2018, is backing the partnership. It seeks to tie up with firms that aim to reshape the $40 trillion debt and private credit markets.

“We have always regarded YieldStreet as an innovative platform in the market, bringing institutional-style investments to a broad audience,” said Matt Zhang, Head, Sprint, Citi. He added, “We’re really excited to partner with the YieldStreet team and believe there is a tremendous opportunity for us to scale our relationship together.”

Per a Bloomberg article, the partnership will be offering assets of about $2 million over a period of 24 months.

Our Take

Citi continues to execute growth strategies, such as making entry into the booming digital consumer payments industry and expanding global market presence, thereby aiming to diversify revenue sources. This is also reflective of management’s focus on enhancing the company’s performance.

Also, solid prospects, driven by revenue growth, expense management and inorganic expansion strategies keep us encouraged. However, pending litigation issues might lead to higher legal expenses.

Shares of Citi have gained around 10.9% over the past six months compared with 15% growth recorded by the industry.

Citi currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Northern Trust Corporation (NASDAQ:NTRS) has been witnessing upward estimate revisions for the past 30 days. Additionally, the stock has jumped more than 16% over the past six months. It currently carries a Zacks Rank of 2.

The PNC Financial (NYSE:PNC) Services Group, Inc (NYSE:C) has been witnessing upward estimate revisions for the past 30 days. Also, the company’s shares have risen nearly 12.8% over the past six months. It holds a Zacks Rank of 2, at present.

The Bank of New York Mellon Corporation (NYSE:BK) has been witnessing upward estimate revisions for the past 30 days. Also, the company’s shares have risen nearly 18.2% in six months’ time. It carries a Zacks Rank of 2, at present.

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