When you invest in bonds, you are buying a debenture in the form of a security which carries a fixed or variable rate of interest for the bond's entire term to maturity. The bond's price is dependent on the interest rate development and the creditworthiness of the issuer. Bonds have the advantage, however, of being less volatile than equities.
For long-term perspectives
States, cantons, municipalities and private companies cover their financial requirements by issuing long-term bonds to attract external capital. As an investor, you receive interest on the bond which is normally paid out once a year. Upon maturity, the nominal value of the bond is repaid.
High quality of bond investments
The quality of the various bonds and issuers is regularly evaluated by rating agencies. While an AAA rating indicates a high level of creditworthiness, the lowest rating D indicates that the borrower will most probably default on the repayment of interest and capital.
Secure investment possibility with state guarantee
In general, the bank's own medium-term notes offer potentially larger earnings in the medium to longer term than a classical savings account. Consequently, this safe investment possibility is used by many savers who wish to accumulate savings through investments in securities. From just CHF 1'000.- you can invest in our medium-term notes with a maturity of from two to eight years. You choose the period of maturity you would like. The annual interest payment is credited directly to your account.
