Kandler

For Investors

Extending Your Asset Frontier

Discover the Potential of the Munipcal Asset Class

Municipal credit facilities and municipal bonds have been an established asset class for safety-oriented institutional investors in the U.S. public debt market for decades. In Germany, the potential of the asset class “municipalities” as a profitable and safe investment has just been discovered. As Germany’s most progressive large-scale arranger for municipal financing, Kandler offers you an easy and sustainable access to this asset class.

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German Municipalities should have a Place in your Portfolio

At first sight, each municipality appears differently. However, all municipalities of the Federal Republic of Germany have one feature in common: they are subordinated regional administrative entities of a first-class debtor known as “Germany”. On the capital market, this feature shows up in the fact that all previously issued municipal bonds exhibit a relatively homogenous risk premium. Thus, German municipalities are uniformly perceived as reliable debtors by investors.

Municipality investments combine
high security with an attractive interest yield
in comparison to pure sovereign (state-level) investments.

Municipal Promissory Notes

The investment instrument of the first choice

Only a small number of German municipalities has issued tradable bonds so far. Therefore, municipal promissory notes are the investment instrument of the first choice for institutional debt investors in order to participate in the asset class “German municipalities“.

The advantages of using this established investment instrument are clear:


Highest flexibility in the arrangement

Legal security under German law

No mark-to-market valuation volatility in the balance sheet

Prudent transactions through private placement

Our Breadth of Market Your Diversification

Point by Point: More than 1,000 Municipalities that work with Kandler