Considering the location, have you encountered the 3.5% bond offered by BaWÜ?
Baden-Württemberg, one of Europe's strongest economic regions, has announced a new investment opportunity with its floater bond. This bond, considered a safe investment, is issued by the state treasury, known as the 'Land Baden-Württemberg'.
The bond, which boasts an 'AA+' rating from the S&P rating agency, the second-highest rating, is a variable-rate bond tied to the 6-month Euribor reference rate. The current coupon rate stands at 3.62%, adjusted periodically. This structure allows the bond to yield more than German government bonds, even with several small interest rate cuts by the European Central Bank.
Baden-Württemberg's financial strength is evident, with the state recording the most patent applications per capita in Germany. It leads in key industries such as automotive, machinery, medical technology, and information technology, hosting global giants like Daimler, Bosch, and SAP. The state's innovative prowess and export orientation have earned it the title of a 'hidden champion' of the middle class, driving the region forward through innovation and specialization.
The state is increasingly focusing on sustainability and renewable energy to promote the transition to a green economy. This commitment to a sustainable future is reflected in the bond's structure, as the first interest rate adjustment will occur on the bond's first reset date, typically happening around 5 years after issuance.
For those interested in learning more about this investment opportunity, the current issue of Yahoo Finance, Germany's Financial Weekly Newspaper, provides detailed information. The special offer for Yahoo Finance offers a 3-week subscription at 9.90 euros, saving over 25%. As a digital subscriber, one also receives a weekly digital update with an overview of the most traded derivatives of the week.
In conclusion, Baden-Württemberg's floater bond presents a unique investment opportunity in one of Europe's most dynamic and innovative regions. With its strong financial strength, commitment to sustainability, and variable interest rate tied to the 6-month Euribor reference rate, this bond could be an attractive addition to any investment portfolio.
