2023-04-22 19:19:23
Fighting for regulation that is more friendly to private investors: the Stuttgart Stock Exchange, a popular place for bond trading
Image: Domenic Driessen
If a German private investor wants to buy bonds and thus benefit from the rise in interest rates, he often finds himself in front of closed doors. High time to change that.
VMany investors are just opening up a new asset class. The Bundesbank, the Stuttgart Stock Exchange and investment advisors all report that bonds are currently attracting unprecedented interest from private investors. Porsche is currently offering more than 4 percent interest. Federal bonds with a term of two years yield 3 percent a year. After years of interest-free slumber, the risk/reward ratio in the bond market has suddenly improved.
Complaints and investor outrage are increasing to the same extent. In an effort to protect people from themselves, regulation has increasingly closed the bond market to private investors for years. Many bonds cannot be traded at all by private investors, others only for minimum investments of more than 100,000 euros.
None of those involved really know why this happened. High time to clear pointless hurdles as quickly as possible. Because just as individual stocks are for everyone, so should bonds be. They should be freed from their ban area so that private investors can also reap the benefits of the interest rate turnaround unhindered.
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