Federal bond (Germany)

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Federal bonds ( Bobls ) are bonds and thus interest-bearing securities that are issued by the Federal Republic of Germany through the Federal Republic of Germany - Finanzagentur GmbH as government bonds . In addition to borrowing from banks , federal bonds and other federal securities are a means of financing government spending with loans .

Federal bonds have been issued since 1979. They have a fixed nominal interest rate that is paid annually and, unlike the longer-term government bonds, only have a term of five years.

Issuance process and trading

The issue (issue) of federal bonds always takes place within the framework of an auction ("tender procedure"), which is followed by the introduction to stock exchange trading . In the auction, only credit institutions that belong to the so-called Bund Issues bidding group are entitled to acquire federal bonds. Other credit institutions, professional and private investors can commission banks of the bidder group to submit bids or purchase federal bonds themselves on the stock exchange after they have been issued. Since buying and selling always take place at the current stock exchange price , federal bonds can be used to generate fixed annual interest income as well as price gains and losses.

New federal bonds are issued in consecutively numbered series and can thus be more easily distinguished from one another. The serial number is part of your securities identification number , which always begins with 114xxx, where xxx stands for the serial number (example: Series 155 has WKN 114155). From a technical point of view, federal bonds can be traded as book- entry securities through entry in the federal debt register , whereby the investor receives a co-ownership share in the collective securities portfolio in accordance with Section 6 (1) DepG .

A new issue with a volume of around EUR 5 billion is followed in the following months by so-called top-ups of the same series (same securities identification number) at a lower level (between EUR 3 or 4 billion in 2015), so that a federal bond (series) ultimately has a volume from 15 to 20 billion euros. New federal bonds (series) were issued three times a year between 2010 and 2014, only two new issues are planned for 2015 - but more increases in these two new series.

meaning

Federal bonds serve to supply the federal government with medium-term liquidity. For the federal government, they are an important financing instrument , because of the total issue volume (new borrowing) of the federal government in 2015, their share will make up around one fifth. In 2015, their share in the federal securities already in circulation (existing federal loans and debts) is just as high. At the end of 2014, there were federal bonds in circulation with a total volume of more than 250 billion euros.

Federal bonds, like all federal securities, are classified as " bulletproof securities".

With a term of 5 years, they are ideally suited for professional investors for the fulfillment of exchange futures transactions , the delivery of the so-called Bobl future at Eurex .

Web links

Wiktionary: Federal Obligation  - explanations of meanings, word origins, synonyms, translations

See also

Individual evidence

  1. ↑ Federal bonds in the 'e-FORUM: Federal securities - May 2009' , investor magazine of the finance agency (PDF 429 kB), accessed on April 2, 2015.
  2. ↑ Federal tender procedure , website of the Finance Agency, accessed on April 2, 2015.
  3. ↑ Declaration of Federal Bonds , website of the Finance Agency, accessed on April 2, 2015.
  4. ↑ Federal issuance calendar ( Memento from September 23, 2015 in the Internet Archive ), auction overview as PDF (25.3 kB), accessed on April 2, 2015.
  5. ↑ Significance and circulation of federal bonds , website of the Finance Agency, accessed on April 2, 2015.