Your capital investment in bonds
With bonds, you acquire an individual partial debenture in the form of a security according to the amount of your investment. Interest is paid at a fixed or variable rate over the entire term of the bond.
The price of bonds and thus their value depend on the borrower's creditworthiness and the general interest rate development on the capital market. The main advantage of a bond is that it is less volatile than equities. Bonds are subject to fewer potential price fluctuations and are ideally suited as an investment option with a long-term perspective.
Whether national governments, cantons, municipalities, or private companies – all of them often cover their financing needs by issuing bonds. These mostly long-term bonds are used to raise borrowed capital on the free capital market. Depending on their maturity, these securities are referred to as short-term or long-term. As an investor, you receive interest payments on your invested capital. This interest is usually paid out once a year. At the end of the term, the par value of the bond will be repaid to you as an investor. All in all, this makes bonds an attractive investment opportunity.
But the quality of the bond issued and thus the borrower's creditworthiness is of primary importance. This quality of bonds and of borrowers is regularly evaluated by rating agencies. A AAA rating stands for high creditworthiness and thus for expected servicing of interest and capital repayments by the borrower. On the other hand, the lowest D rating tends to point to the assumption that the borrower can most likely no longer make interest and capital repayments.
Our daily updated list of bonds provides an overview of selected bonds.
- Investment horizon: Long-term perspectives for a tailored capital investment
- Quality: Bonds evaluated by renowned rating agencies are available
- Diversification: Diversification opportunity for building up assets
- Interest: Annual interest payments ensure continuous income
- Investment: Repayment of invested capital at maturity
Benefit from bonds in different ways
Plan your investments for the long term, risk-consciously, and with sufficient knowledge so that you know your assets are in good hands and you can concentrate on the essential things in life.
Limitation of risks
Diversify your investment as broadly as possible
Diversification of your assets places your investment on a broader basis for the long term and at the same time reduces your investment risk. In addition to bonds, there are other options for your individual capital investment.
LLB Fund Savings Plan
Find out more about bonds as a capital investment
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