Bonds issued by private issuers in various countries, especially after 2008, for which a government provides the guarantee. The fee charged for this by the state in the individual countries is between 0.5 and 2.5 percent of the bond amount. Institutions that use a government guarantee for an issue must regularly provide evidence of certain conditions, especially with regard to their equity capital resources. – Government-guaranteed bonds made a major contribution to calming the global financial market following the turbulence caused by the financial crisis that followed the subprime crisis. In Germany, these securities with a maximum term of five years did not become a competitor to the Pfandbrief, as was initially feared here and there.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
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