Public Loan

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Public bonds ( English public bonds ) are bonds in which a State or belonging to him authorities as debtor act.

General

With regard to the debtor, there are corporate bonds from non-banks , bank bonds or Pfandbriefe from Pfandbrief banks . In view of the market volume of public bonds dominate because of the high public debt the primary market on the bond market . They are a popular financial product both with small investors and with institutional investors ( pension funds , insurers ). The issues of the public credit institutions do not belong to the public bonds .

species

A general distinction can be made according to the type of debtor:

The EU bond , which has only been discussed so far , should also be counted among the public bonds.

Species in Germany

There are also mixed forms such as Bund-Länder bonds or Jumbo Pfandbriefe . All debtors are either institutions or corporations under public law . If the debtor is a public company that backs its bonds with a government guarantee , the bond is also referred to as a public bond.

Bond terms

The terms and conditions of public bonds are based on the requirements of the International Capital Market Association (ICMA), such as the interest calculation method . Of all bond types, public bonds have the longest term of up to 30 years and are often repaid in one sum at the end of the term . They are unsecured because the state assets and tax revenue of the bond debtors guarantee a high credit rating .

Federal government bonds are given the top AAA rating by rating agencies , which is why they belong to the good asset class and can also be purchased by risk-averse investors . With other government bonds, especially if they are denominated in foreign currency , there is a sometimes high financial risk , which, for example , has already led to bad debt losses in the case of government bonds from Argentina . Since an arbitration process between Argentina and some hedge funds did not lead to an agreement in July 2014, Argentina has been de jure insolvent since then.

Usage

Public bonds are used to finance government investments and for infrastructure tasks , but also to compensate for budget deficits and consolidate through debt rescheduling . In some cases, public bonds can also be named according to their purpose . An example of this are the war bonds .

International

Switzerland

The Switzerland emitted a variety of "Switzerland-bonds", whose volume per emission between 95 million and 5.6 billion Swiss francs is. The outstanding volume of Swiss bonds is EUR 80.14 billion, of which EUR 27.44 billion will become due in the next 5 years (as of July 2020).

Austria

Also, Austrian government bonds (commonly known as "Bunds") are government bonds to the public bonds. The volume per issue is between 100 million and 6 billion euros. The total outstanding volume for Austrian bonds is EUR 254.18 billion. In the next 5 years, 112.94 billion euros will be due (as of July 2020).

United States

"Treasuries" (named after the US Treasury Department of the Treasury ) are US government bonds . Treasury Bills ("T-Bills"), Treasury Notes ("T-Notes") and Treasury Bonds ("T-Bonds") are the most important forms of US Treasury bonds . The total outstanding volume for US Treasuries is 15.13 trillion euros. In the next 5 years 10.98 trillion euros will be due. Terms of up to 30 years are common (as of July 2020).

Individual evidence

  1. ↑ Ludwig Gramlich / Peter Gluchowski / Andreas Horsch / Klaus Schäfer / Gerd Waschbusch (eds.), Gabler Banklexikon (K - Z): Bank - Börse - Financing , 2020, p. 1692
  2. ↑ Wolfgang Grill / Ludwig Gramlich / Roland Eller (eds.), Gabler Bank Lexikon: Bank, Börse, Zusammenarbeit , 1996, p. 1159
  3. ↑ Hans E. Büschgen, Das kleine Börsen-Lexikon , 2012, p. 63
  4. ↑ The International Swaps and Derivatives Association decided that Argentina was a credit event .
  5. ↑ finanzen.net, Switzerland bonds
  6. ↑ finanzen.net, Austria bonds
  7. ↑ finanzen.net, US Treasuries