German Government Bonds are “Riskless”

March 20th, 2014
in econ_news

So Says German Debt Management Government Agency

by Dirk Ehnts, Econoblog101

Finanzagentur GmbH, you might have guessed it, is the German finance agency, which is conducting the operations necessary to ensure that the German government does not run out of money. It is part of the German treasury. As investors have found out the soft way, euro zone bonds are not always risk free. Greece restructured its debt, but only when most of its debt was offloaded by the private sector to the public sector and its institutions. Since I am looking into the mechanics of German government debt emission, I was a little bit surprised to find Finanzagentur writing the following:

Follow up:

Investors in German Government securities have at their disposal a range of risk-free, highly liquid securities with a straightforward and transparent structure across the full yield curve. The safe haven status of the Bund is especially attractive to investors in times of crisis.

This is the first sentence in the first paragraph on the website after you have clicked on institutional investors. So, whatever the German government says about Draghi, the Finanzagentur has accepted that 'whatever it takes' means literally risk-free.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2018 Econintersect LLC - all rights reserved