Capital investments involve risks.
German issuer: Goldman, Sachs & Co. Wertpapier GmbH. 100% guaranteed by the parent company The Goldman Sachs Group, Inc. in the US.
In the Scalable Broker there are ETFs that allow you to invest in sustainable bonds, the money market and more.
Bonds are securities that usually earn you regular interest payments. The most important features:
For a detailed explanation of what bonds are, what the different types are, and what investors should be sure to keep in mind when investing, check out our knowledge article.
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At the end of the term, the bond is repaid at its nominal value (note creditworthiness/issuer risk). Until then, however, the price of a bond is subject to the interplay of demand and supply on the stock market. In particular, the general interest rate level has an influence on the value of a bond. If market interest rates rise, for example, the interest on a fixed-rate bond becomes relatively less attractive and the price of this bond falls. Thus, a rise in market interest rates is usually accompanied by falling bond prices. Moreover, even if all interest and the nominal value are paid at maturity, a bond investor may incur a loss if, for example, they sell before maturity at a price lower than the issue or purchase price of the bond. Creditworthiness and inflation risks can also have an adverse effect on the price of the bond. Please also refer to our risk information.
Interest is calculated on a daily basis and paid out annually. As a result of the day-by-day calculation, the price of the bond (apart from other influencing factors) increases every day in line with the accrued interest entitlement. With the annual payment, the bond price decreases accordingly. Depending on the bond, the exact interest payment date can be found in the product information sheet and on the website of the issuer of the bond.
Yes, you get the invested money back in full at the end of the bond's term. Please note the risks explained below.
If you need the invested money before maturity, you can sell the bond at any time. However, this may result in a loss if the current market price is lower than the purchase price.
When investing in bonds, investors become creditors of the bond issuer. If the issuer becomes insolvent, there is a risk that interest payments and/or the repayment of the invested amount may not be received at all or only in part. There is no deposit insurance for bonds. If the issuer becomes insolvent, investors may lose their invested capital (total loss).
Bonds can be sold on the stock exchange at any time before maturity. However, there is a risk that the price of the bond may be lower than the purchase price when it is sold.
Please also refer to our risk information. Scalable Capital does not provide investment advice.