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Credit investing glossary

Bunds

A Bund is a fixed-interest, euro-denominated security issued by Germany’s federal government to fund its debt. in practice While the term ‘Bund’ refers specifically to bonds with maturities of 10 years and longer, it is used for a broader range of German government debt securities. Bunds are issued in the primary market, in maturities of 2 years (Schatz), 5 years (Obl), 10 years (Bund) and 30 years (Bunds, Buxl). The secondary and futures markets in these debt obligations are very active.

European benchmark

Longer-dated Bunds, those with a 10-year and 30-year maturity, are considered to be the German equivalent of US Treasury bonds. Bund yields are viewed as benchmark yield indicators for European government bonds, and long-term Bund yields are a proxy for euro area (credit) risk-free rates.

Consistently at the forefront of credit management
Consistently at the forefront of credit management
Credit investing
Fixed income outlook: Twin peaks
Fixed income outlook: Twin peaks
In the past 50 years, every single recessionary peak in credit spreads has been preceded by a peak in government bond yields.
20-09-2022 | Insight
Central bank watcher: Work in progress
Central bank watcher: Work in progress
Financial markets are already giving a verdict on tighter monetary policy in US and European markets.
13-09-2022 | Insight
Building back bond exposure
Building back bond exposure
The outlook for bond investing has improved.
08-09-2022 | Insight