The securities issued by public entities (general government, constituent states, municipalities). – In Germany, the majority of trading in federal government securities takes place in over-the-counter telephone trading, with the Bundesemissionen bidding group playing the decisive role in primary trading. In the secondary market, government securities are traded on various platforms, which means a certain degree of fragmentation but offers the advantage of open market access and more competition. – Pursuant to § 36 BörsG, debt securities issued by the Federal Republic of Germany, its special funds or a Federal State – also to the extent that they are registered in the Federal Debt Register or in the debt registers of the Federal States – as well as debt securities issued by another Member State of the EU or by another State party to the Agreement on the EEA are admitted to the official market on any domestic stock exchange. – The basis for confidence in government securities is that issuers will service their debts properly. As soon as this confidence fades, experience shows that investors reject securities in their portfolios, and sales of new issues are sluggish. – See ClubMed, creïrung, over-the-counter trading, Plan C, safe haven flows, debt, floating, seven percent limit, stocks, securities, risk-free. – Cf. Monthly Report of the Deutsche Bundesbank of July 2004, p. 37 (degree of integration of the euro area government bond market), Monthly Report of the Deutsche Bundesbank of October 2006, p. 34 f. (further convergence of euro area government bond markets), Monthly Report of the Deutsche Bundesbank of November 2007, pp. 44 f. (portfolio shifts toward government securities as a measure of investors’ risk assessment), Deutsche Bundesbank Monthly Report of December 2008, p. 34 (the respective situation of public finances also in the euro area is very much taken into account by investors), ECB Monthly Report of June 2009, p. 25 ff. (acquisition of government debt securities since 1999). – In the “Euro area statistics” section of the ECB’s respective Monthly Bulletin, yields on government bonds (also compared with U.S. and Japanese bonds) are shown under the heading “Financial markets”; see also the “Notes” there. The monthly supplement “Capital Market Statistics” published by the Deutsche Bundesbank contains figures on government securities outstanding, broken down in many cases.
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/