Extending Your Asset Frontier
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.
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.
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: