Börsenlexikon: Bond

The English term "bond" stands for bond, debenture, annuity or debt security. Bonds are the collective term for all fixed-income securities such as bonds, mortgage bonds, debentures, etc. In contrast to shares, which securitize a share in a company, they are denominated in a monetary debt that bears interest at a fixed rate (coupon) for a fixed term. Bonds are usually traded on the stock exchange and are subject to price fluctuations that depend on the level of interest rates on the capital market. However, these fluctuations are normally much smaller than those of equities. The investment risk varies. It is influenced by maturity, creditworthiness of the debtor, currency and domicile. See also "Oblig.