A special report prepared by Deutsche Morgan
Grenfell
GERMANY
A EUROMONEY SURVEY - June 1996
Prepared by Helmut Kaiser, Head of Fixed-Income Research, Frankfurt, and Werner Krämer, Senior Analyst,
Deutsche Morgan Grenfell Measured in terms of the nominal amount of bonds outstanding, the German bond market ranks third in the world after the US and Japanese markets (see Chart 1: year-end 1994 data). In terms of net sales of fixed-interest securities, it has been the second largest market since 1992 by international standards. In Europe, the German bond market, with a turnover of Dm2.870 billion at year-end 1995, occupies the leading position. The total volume of Deutschmark bonds outstanding has roughly doubled compared with 1990.
Market segments and issuers
In terms of turnover, bank bonds play a leading role in the German bond market (49% share in 1995), ranking above public sector issues (38.5% share in 1995). Deutschmark-denominated Eurobonds accounted for 12% of issuance while corporate bonds play only a minor role in the German bond market, accounting for less than 1% of issuance in 1995.
The public sector, as a group of issuers, comprises the following agencies:
* The Federal government and its special funds, accounting for 56.6%
