- Nominal value repayment
- Regular interest rates
- Safe planning
Count on predictable income
Take advantage of bonds for your investment and participate in the exchange business. Lend your money to companies or institutions and receive regular interest payments. At the end of your investment, you are entitled to full reimbursement of the money initially invested as well as possible capital gains.
Fixed interest rate and maturity
With bonds, you lend your money for a fixed term to the emitter, the issuer of the bond. Normally these are enterprises, banks or the state. The creditworthiness of the issuer depends on the risk of the investment. Bonds are traded on the stock exchange; thus, your price depends on the maturity, the issuer's creditworthiness, the nominal interest rate and the general level of interest rates. At the end of the term, you will receive the principal amount of your invested capital.
Your benefits with bonds
Regular interest income
Price gains boost your returns
Currency gains depend on the development of foreign exchange for bonds in foreign currency
Suitable for medium and long-term investments
Your risks with bonds
Risk of losing money due to issuer insolvency
Dependent on value changes of the underlying reference value
Losses due to exchange rate fluctuations of securities in foreign currency
Liquidity risk with bonds that are not quoted on the stock exchange
Low returns by early repayment
Important information regarding the risks of investment products
The information provided here contains only general information on individual types of financial instruments. They do not constitute nor do they substitute the opportunities and risks of the investment products in a detailed banking consultation. Detailed information on individual investment strategies and investment products including related risks, execution venues and costs and related charges are suggested by your Volksbank Kaiserslautern eG before implementing an investment decision in the framework of a consultation.