Home     About Us    Contact Us     Contribute     Privacy
Investing
Stocks
Bonds
Mutual Funds
Biz
Credit
Career
College
Economics
Tax
More
 
 
Marketplace
Related Articles
More
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Borrow No More Than 30% of Your Available Credit

Borrow No More Than 30% of Your Available Credit - You should borrow no more than 30% of your available credit each month if you wish to keep your credit...

read entire tip

Related Podcasts
Recently Added
Other Great Sites
 

German Government Bond

German bonds are called Bunds, short for Bundesanleihen, and they range in maturity dates from two to thirty years. The two-year bonds are called schatze, five-year bonds are called bobls, ten to thirty-year bonds are called bunds or buxl.

Governments need money for everything from infrastructure to social programs; and a government bond is nothing more than a loan to the government in the amount of the bond. In return for this loan, the bond holder will receive interest on the loan and will be paid back at an agreed upon time. The government is known as the bond issuer.

The German Government bond issuance is considered the gold standard of the European bond market. Most German bonds are held by large groups that facilitate pension plans, hedge funds, retirement funds and medical insurance; most individuals own the bonds only through these large groups, and only a few have the bonds in their personal portfolio.

Evidence that the recession is almost over continues to mount, and concerns are growing that interest rates will continue their recent ascent. Because bond prices move opposite interest rates, there would be further declines in U.S. Treasury bond prices. That prospect is reason why many analysts advise investors not to invest in long-term Treasury bonds until their yields surpass 4%, or perhaps even 4.5%.

However, foreign markets are doing better in the shorter term. It is possible to get 6% or better from a global issuer with the stature of Deutsche Bank. Moody's says that global economies have started to heal and that there are signs of stabilization among foreign bond issuers and that they seem to be doing better in the current financial crisis than U.S. bonds.

Because it is difficult for an individual investor to buy German government bonds through U.S. banks, it is recommended that an investor go to a German bank and let them make the required purchases. However, most foreign bonds are not available for under 100,000 in the foreign currency. Because Germany has changed over to the Euro, this means roughly 140,000 US dollars. This is why the holders of German bonds are usually large groups and financial institutions who run hedge funds and other large investment instruments.

Discuss It!

thesis writing services said:

The terminologies being used here also considered to be more essential whether you are following the market or having the direction with your firm, you have to understand well about these terms so you would better understand the bonds.

Finance Case Solutions said:

Finance Case Studies Analysis Solution and Analysis, Finance Case Studies Analysis Solutions, Custom solved according to your need.

How Strategic Is Your Board? Case Solution said:

I need to support that you proceed with your incredible occupation, have a decent day.

192.168.1.1|192.168.1.1|192.168.1.1|192.168.1.1 said:

This is why the holders of German bonds are usually large groups and financial institutions who run hedge funds and other large investment instruments.

http://richestcelebrities.org/richest-producers/ said:

Continue doing shocking I am looking forward for more fundamental examinations and more goals.

cheap motorcycle exhaust said:

That is to state, I break down for such article along time, today i discover it at long last. this post give me heaps of censure it is especially crucial for me.

top said:

In light of current conditions, basically, every one of your specialists have the most extreme other than farthest point associated with various It's hard to discover superb made work like yours these days.

her comment is Kccatl said:

I truly appreciate basically perusing a large portion of your weblogs. Essentially needed to educate you which you have individuals like me who value your work. Unquestionably a fabulous post.

free walking tour stockholm said:

The two-year bonds are called schatze, five-year bonds are called bobls, ten to thirty-year bonds are called bunds or buxl.

Shiridi Sai Baba Quotes said:

nice post...

get followers | like4like said:

That is the reason you ought to consider deciding on an option arrangement.

audi a6 car covers said:

If I needed to pick amongst resting and perusing this blog, I'd unquestionably run with this blog.

search engine optimization agency said:

The writer has written this blog in the most artistic way. Splendid!

Most Popular Articles
Most Popular Definitions
 
Daily Definition

Definition of the Day Minority Interest

Minority Interest - Minority Interest is shareholders whose combined shares represent less than half of the total outstanding shares issued by a corporation have the minority interest in that corporation. In many cases, the collective holdings of the minority shareholders are considerably less than half of the total shares. In...

read entire definition

 
 

 

 

Home     About Us    Contact Us     Contribute     Sitemap

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Copyright © 2009 TeenAnalyst.com