Bonds are securities that document the temporary transfer of debt. They are governed by the regulations of the German Securities Act. The costs of contract documentation and the associated requirements on the quality and transparency of an issuer’s figures explain why bonds usually presuppose a volume per issue in the triple-digit millions or – for smaller volumes – a certain regularity in the use made of the capital market. Usually, bond issuers also have a rating from one of the leading rating agencies.
Bonds are aimed at all buyers in the global capital market and are the instrument with which borrowers can raise the largest amounts. Bonds offer the highest level of funding source diversification (lenders). They supplement borrowing through the classic (bilateral) credit business.
With the cooperative financial network DZ BANK has access to a unique group of buyers, i.e. a broadly-diversified and granular/small-ticket placement which also brings stability in the secondary market.