Bond (Anleihe)
A security through which you lend money to a government or company in return for interest.
In short
As of 8 October 2026A bond is a security through which you lend money to a government or company. In return you receive regular interest and get the face value back at maturity. You are a creditor, not a part-owner. Bond prices move: when interest rates rise, prices of existing bonds fall. If the issuer defaults, you can lose money.
With a bond (German: Anleihe) you lend money to a government or company. In return you receive regular interest, the coupon, and get the face value back at maturity. Unlike with a stock, you are a creditor, not a part-owner.
Bonds trade on the exchange and their prices move. When the key interest rate rises, prices of existing bonds fall, because new bonds offer more interest. The risk depends on the issuer: German federal bonds are considered very safe, while companies with weak credit pay more interest but can default. Bonds are not covered by deposit insurance.
Example: you buy a 1,000 euro bond with a 3 % coupon and a 5-year term. You receive 30 euros every year and 1,000 euros back at the end, provided the issuer can pay. More in the chapter on risk and diversification.
Related terms
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.