A. List of Bunds Issues Auction Group²
FIRM ABN AMRO Banca IMI Bankhaus Lampe KG Bank of America Merrill Lynch Barclays Bayerische Landesbank BBVA BHF-Bank Aktiengesellschaft BNP Paribas Citigroup Commerzbank Crédit Agricole Credit Suisse Danske Bank A/S Dekabank Deutsche Bank DZ Bank Goldman Sachs HSBC ING Jefferies J.P. Morgan Landesbank Baden-Wurttemberg Landesbank Hessen-Thuringen Girozentrale Mizuho Morgan Stanley Natixis Key: AFME/Primary Dealer Members Non- AFME Members AFME Members Germany (DE) û û û û û û û û û û û û û û û û û û û û û û û û û û û Firm’s location Amsterdam Milan Bielefeld London London Munich Madrid Frankfurt Paris London Frankfurt Paris London Copenhagen Frankfurt Frankfurt Frankfurt London Dusseldorf Amsterdam London London Stuttgart Frankfurt London London Paris
¹ Germany does not have any Primary Dealership system per se but as there are still rules that apply to the investment banks members of the Bund Issues Auction Group we decided to include this European Member State to this Handbook. ² List of the members of the Bund Issues Auction Group operating on the German Government Bond Market as of January 2012 . For complete information please refer to the Bundesbank's website http://bundesbank.de.
European Primary Dealers Handbook
FIRM Nomura Norddeutsche Landesbank Girozentrale Nordea Rabobank Royal Bank of Canada Royal Bank of Scotland Santander Scotiabank Europe Société Générale UBS Unicredit West LB TOTAL Key: AFME/Primary Dealer Members
Germany (DE) û û û û û û û û û û û û 38
Firm’s location Frankfurt Hannover Helsinki London London Frankfurt Madrid London Paris Frankfurt Munich Dusseldorf
B. Credit Rating
German debt is rated as follows:³ Ÿ Standard and Poor's: AAA Ÿ Moody's: Aaa Ÿ Fitch Ratings: AAA
C. Financial Instruments
The German Federal Government currently uses a wide range of securities to borrow funds for financing its budget. This includes: Ÿ Federal bonds (bunds); Ÿ Five-year federal notes (bobls); Ÿ Federal treasury notes (schätze); Ÿ Inflation-linked German Government Securities; and Ÿ Treasury discount paper (bubills). The Government also issues Federal Treasury financing papers, Federal savings notes and Government Day-Bond which are securities that are offered solely to the retail base.
³ Credit rating correct as of 16 January 2012
European Primary Dealers Handbook
Foreign currency bonds were added in May 2005, followed by Inflation-linked German Government securities in March 2006. German-type promissory notes (schuldscheindarlehen) are also offered. Since 2002, growing use has been of derivative financial instruments (swaps). They serve to lower the Federal Government’s interest burden and help optimise the risk structures in the Federal Government’s portfolio. German Government securities have a fixed coupon with annual coupon dates. Maturities are fixed, and there is no provision for premature redemption by the issuer either by call or drawing lots. All German Government securities are eligible for the investment of mutual funds or as life insurance cover funds and are eligible for refinancing at the central bank, pursuant to Article 18.1 of the ESCB/ECB Statute. Purchases of tap issues of German Government securities in the primary market (that is to say, purchases of Federal paper that is not issued by auction) are free of charge to the investor because the issuers pay the credit institutions a selling commission. German Government securities are issued as Debt Register claims (Wertrechte). This means that the creditors’ claims are not evidenced by certificates but registered in the Federal Debt Register as a collective Debt Register claim. By way of legal fiction, such a Debt Register claim is equated to collective securities deposits so that to that extent it does not differ from “genuine” securities. The advantages of issuing securities in the form of Debt Register...
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