Lottery loan

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Lottery bonds (or premium bonds ; English callable bonds, lottery bonds ) are bonds , in which instead of or in addition to a coupon rate a premium from a lottery are paid.

General

The bond conditions stipulate the number and amount of the staggered bonus in the raffle plan; a series raffle is also possible. The lottery is therefore organized specifically for borrowing tickets. If there is no interest payment at all, the bond is called a lottery bond ; if interest is also paid, it is called a premium bond . If a premium is paid in addition to the nominal interest rate , this is lower than the general interest rate for bonds.

Today , lottery bonds are only found in the UK , Sweden and the USA , namely as “lottery bonds” and “premium bonds”.

history

The issue of lottery bonds in England and France can be traced back to the 17th century, although in most countries they were exclusively reserved for government bonds . The first raffle bonds were reported in Austria in April 1820 , when, at the suggestion of Salomon Rothschild, a raffle bond met with unusually high demand. In 1867 there were reports of a Brussels raffle loan, and in 1868 a Madrid raffle loan was issued. In the former Soviet Union , almost all government bonds were issued as lottery bonds. On the one hand, the character of a compulsory loan was softened by promised profit opportunities, on the other hand, the factual deferral of the repayment did not appear so obvious. In Germany, in June 1871, a Reich law stipulated that lottery bonds could only be issued by the German Reich and the federal states. Only the 1919 savings bond came onto the market as a result of the law. It could not be accommodated because the Reich had lost its creditworthiness with the public .

As in France in 1894 Ferdinand de Lesseps to build the Panama Canal a financing sought Bankhaus Jacques de Reinach put on a lottery bond. In May 1935, the city of Paris issued a lottery loan. The Italian state Istituto per la Ricostruzione Industriale launched a lottery bond with a prize draw for cars in 1964. The first German lottery loan after the war was issued in March 1951 as a “treasure trove statement” - the first and last of its kind.

Financial math

In the case of lottery tickets, the premiums are taken into account as a premium in the annuity and are not added to the individual items (lots) in the fixed ratio of the nominal values , but instead as a bonus. Items for which no premium is due ("rivets") are redeemed at their nominal value. The price development is mainly dependent on the lottery opportunities, which result from dividing the hits that have not yet been drawn by the number of outstanding bonds. The uncertainty as to when loose bonds will mature shows a higher volatility than standard bonds .

Demarcation

Not to be confused with lottery bonds , for which there is no uniform maturity , but which are repaid through drawing certain tranches .

Web links

Individual evidence

  1. ↑ Karl Heinz Müssing (eds.), Gabler Bank Lexikon , 1985, Sp. 1475
  2. ↑ Klaus Stüdemann, The stock of effects in West Germany as a material basis for the general introduction of book effects , 1966, p. 31
  3. ↑ Melchior Palyi / Paul Quittner (eds.), Handwortbuch des Bankingwesens , 1933, p. 361
  4. ^ Egon Caesar Conte Corti , The Rise of the House of Rothschild 1770-1830 , Volume I, 1927, pp. 240 ff.
  5. ^ Hans Janberg, Financing Handbook , 1970, p. 763
  6. ^ Karl Theisinger, Die Bank: Textbook and Reference Book of Banking and Savings Banks , Volume 1, 1952, p. 460
  7. ↑ Carl-Ludwig Holtfrerich , Die deutsche Inflation 1914-1923 , 1980, p. 124
  8. ^ Max Nordau, Speeches and Writings on Zionism , Volume 4, 2018, p. 258
  9. ↑ Erich Kosiol, Finanzmathematik , 1948, p. 74
  10. ↑ Melchior Palyi / Paul Quittner (eds.), Handwortbuch des Bankingwesens , 1933, p. 361