UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: okosling Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35387  
Subject: Re: Buying Bonds Based on Euro Date: 11/21/2000 9:20 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Flatlaxity,

If you're interested in buying euro-denominated bonds, the obvious place to look is Frankfurt.

One good starting place would be a German newspaper like the Handelsblatt (Germany's leading business daily), and look down the listing of eurobonds to find one which suits you (based on maturity, Moody/S&P rating of issuer, etc). If you can't get a Handelsblatt, one of the other leading German newspapers e.g. Frankfurter Allgemeiner Zeitung will give similar info to get started. Never mind if you can't read German - lists of prices are a fairly universal language! It's not hard to figure out which column is 'yield to maturity' etc. One thing you wouldn't guess easily is that a small 'b' after the price ('bezahlt' = 'paid') are the ones with most volume (at least that day) so it might be better to pick from those. I presume that in most big US cities, you can buy a German newspaper.

Another way to start would be from a search using an online broker's web site. I normally use www.comdirect.de . The address for the general search facility (not restricted to customers only) is http://informer2.comdirect.de/de/suche/main.html . All you need is a couple of words of German: 'Suchbegriff' is what you're searching for, like an issuer. That's only useful if you've got one or two in mind, and that's why a newspaper is a better place to start. 'Wertpapierart' is the type of security: choose 'Anleihe' (= bond). 'Borse' = stock exchange: I normally just choose Frankfurt for bonds.

Then you need a broker. At the German Fool site, there's a guide to discount on-line brokers. http://www.fool.de/finanzen/discountbroker/discountbroker03.htm Many, but not all, are restricted to German residents only. I know Consors is not restricted, and if there is one, there may be others.

However, if you don't speak German, you are probably better off to use a full price service from one of the big banks which cater specifically to foreign customers. For example, at Commerzbank in Frankfurt, contact Frau Weber, direct number 0049-69-13627853. The full price service is still not expensive: commission is 0.5% (discount brokers charge half that, or less).

I can't tell you anything about US tax implications, but there's no withholding tax on eurobonds.

If you reply with a question, also select the box 'e-mail reply to author' because I don't look at this board very often.

Owen
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement