How to make money with bonds
Forms of investment with little risk but high return is the risk of investing in bonds. Especially when you choose bonds from stable countries. Because these countries as the Netherlands, Germany and France had little riscico run to fail, unlike a bank or an equity fund. These countries also give guarantee to repay the loan and interest payments.
What are bonds?
When a country needs money because its economy is not generating enough money, then a country like a business, start issuing stock / sell these bonds are called. This means basically that you as an individual lends money to a country. The loan gives you a course fee in the form of interest.
Is it safe?
That is always the question at stake if we want to earn a quick buck should be at risk. This rule also applies to this belegginsvorm through bonds. It is a sort of country risk index hung countries with a very low risk in this type of investment such as the Netherlands, Germany and France get the AAA designation. This means that your loan to be guaranteed one of these countries will be refunded. This also applies to your interest. The higher the risk the higher the interest. The term of your loan to a country the level of interest, you can borrow up to 30 years per day. The longer you lend money to a country the higher the interest.
How to buy government bonds?
Usually you need a bank as an intermediary, they carry your order to buy government bonds and manage the associated paperwork. Germany is one of the few countries where an individual can buy bonds directly. This is through the so-called Finanz Agentur. German government about the best in Europe. They are as creditworthy as the Swiss government bonds and government bonds are the most sought after in the world. The chance that the German government goes bankrupt and your government bond in smoke, is also smaller than the Belgian government. This finanz agentur open an account or account and then pay capital here. You make this into a schuldbuchkonto and you can then use the capital to be put in government bonds. America also has such a system, benefit is that you have everything in-house.
More leverage, more risk
Do want more than you at risk. Topical example, the government of Greece and Ireland. These countries are so hard up for cash and are willing to give a higher fee, the greater risk lies in the fact that these countries often can not guarantee for the payment of interest or your deposit at the end of the commitment period. This is since the unification of Europe will become a relatively small risk, look at Greece, this country is Europe provide enough money to meet their commitments to meet.
Is this more profitable than savings?
A few examples of the interest rate offered by the issuance of bonds:
* Greece 9.2% interest
* Germany 2.5% interest
* Netherlands 2.9% interest
This is clearly seen that there is significantly more money out of it than saving money, downside is that the capital is a longer period. For a country it is the way to quickly get money, for example Spain, brought to issue bonds in one months time in 3.5 billion euros. So if you have dead capital, it is worthwhile to look at investing in government bonds.
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