GERMANY

ADITYAMAN BORBORAH (215111024) AJEET SINGH (215111054) ANSHUMAN DUTTA (215111070) PEEYOSH SRIVASTAVA (215111079)

By PresenterMedia.com

German Equity Markets

List of Exchanges
Berliner Brse Brse Hamburg Brse Hannover Brse Mnchen Brse Stuttgart Brse Dsseldorf Eurex, Frankfurt-based; (owned by Deutsche Brse and SWX) Frankfurt Stock Exchange (owned by Deutsche Brse; Index: DAX)

Berliner Brse in 1830

Berliner Brse
Founded in 1685 through an edict of Great Elector Friedrich Wilhelm and is one of the oldest exchanges in Germany. A particular focus on trading the widest possible range of foreign stocks. Has opened additional offices in London and Paris in order to underline its pan-European ambitions. In total Brse Berlin enables trading in over 15,000 shares from 82 countries

Brse Berlin Segments

Brse Berlin has two market segments, the Regulated Market and the Open Market. The Regulated Market is a market segment that is governed by public law. Companies that want to launch their IPO on the Regulated Market, need to fulfill the following criteria: They need to have existed at least three years They need to have equity capital of at least 1.25 million At least 10,000 shares need to be issued with a free float of at least 25 % Submission of an offering prospectus approved by BaFin with information about financial statements, capital flow, profit and loss and business prospects.

Brse Berlin Segments

The admission requirements are easier by comparison to those of the Regulated Market: There are no specifications regarding the age of the company. The minimum nominal volume of the share issue shall at least be 250,000 Euro. The prospective market value of the capital available to the market shall not be below 1.5 million Euro. The shares to be included shall be spread sufficiently (free flow of 20 %).

Indian connection in Borse Berlin

Shares Bonds

Brse Hamburg
Founded in 1558. Regular trading in securities began in 1815; therefore the Hamburg Stock Exchange is the oldest of the German Stock Exchanges. 5 exchanges Stock Insurance Grain Coffee Information

Unique??How?
Over 7 500 securities (shares, bonds, warrants and participation certificates, as well as open-end funds) Worldwide, the only other Insurance Exchanges are located in Rotterdam and London, and they are differently structured. Nothing is actually traded on the Hamburg Insurance Exchange. Instead, it serves the insurance industry as a forum for the exchange of information, as well as for business processing, mainly in the so-called commercial insurance branches (transport insurance, fire and liability insurance for industry)

Brse Hamburg
Transactions in grain, oilseed, animal feed, pulses, seed and related products. Important task of the Hamburg Grain Exchange consists of the publication of form contracts for the trade in grain, animal feed and pulses. These contracts are valid worldwide. Coffee exchange is history now.

Brse Stuttgart (Investment product)

Discount Certificates 196,051 (last week 3,453) Bonus certificates 156,516 (last week 6,489) Indexcertificates 4,750 other Certificates Reverse Convertibles

Brse Stuttgart (leverage product)

Warrants Knock-out Products Exotic Products

Brse Stuttgart (Equities)

National Foreign REITs

Brse Stuttgart(Bonds)
Corporate Bonds Federal Bonds Jumbo Bond other Bonds Profit Certificates

Brse Stuttgart (Funds)

Active ETF ETC

Eurex
Interest Rate Derivatives (f.e. Euro-Bund Futures, Euro-Bobl Futures) Equity Derivatives (Equity Options and Single Stock Futures based on European, Brazilian and US underlyings) Equity Index Derivatives (f.e. EURO STOXX 50 Index Futures, DAX Futures, SMI Futures) Equity Index Dividend Derivatives Volatility Index Derivatives Exchange Traded Funds Derivatives Credit Derivatives (iTraxx Europe 5-year Index Series, iTraxx Europe HiVol 5year Index Series, iTraxx Europe Crossover 5-year Index Series) Inflation Derivatives Commodity Derivatives (Agriculture Derivatives, Gold and Silver Derivatives, Power and CO2Derivatives in cooperation with EEX) Weather Derivatives Property Derivatives

Frankfurt Stock Exchange

The Frankfurt Stock Exchange accounts for over 90 percent of the turnover in the German market and a very large share of the European market. The Frankfurt Stock Exchange has more than 250 international trading institutions. The trading indices in Frankfurt are DAX, DAXplus, CDAX, DivDAX, LDAX, MDAX, SDAX, TecDAX, VDAX and EuroStoxx 50.

Contd
over 100 billion Euros in the month of November 2010 with more than 113 billion Euros traded on both Xetra and on the floor at the Frankfurt Stock Exchange. In the year 2010, 1.32 trillion Euros traded on the Frankfurt Stock Exchange

Frankfurt Stock Exchange statistics as of Jan, 2011

Total companies listed on the Frankfurt Stock Exchange: German companies listed on the Frankfurt Stock Exchange:

11,877 1,082

US companies listed on the Frankfurt Stock Exchange:

Total companies listed on the OTCBB: Canadian companies listed on the Frankfurt Stock Exchange:

3,451
2,896 1,622

Chinese and Hong Kong companies listed on the Frankfurt Stock Exchange: 534

UK companies listed on the Frankfurt Stock Exchange:

Australia companies listed on the Frankfurt Stock Exchange: Indian companies listed on the Frankfurt Stock Exchange: Japanese companies listed on the Frankfurt Stock Exchange: French companies listed on the Frankfurt Stock Exchange:

563
588 30 535 241

You think UK is supreme??

The London Stock Exchange rejected a 1.35bn takeover bid from the Frankfurt Stock Exchange operator Deutsche Brse in December 2004

DAX Companies 30 blue chip

Adidas Allianz BASF Bayer Beiersdorf BMW Commerzbank Daimler Deutsche Bank Deutsche Brse Deutsche Lufthansa Deutsche Post Deutsche Telekom E.ON Fresenius Fresenius Medical Care HeidelbergCement Henkel Infineon Technologies K+S Linde MAN Merck Metro Munich Re RWE SAP Siemens ThyssenKrupp Volkswagen Group

MDAX
50 Prime Standard shares from sectors excluding technology that rank immediately below the companies included in the DAX index List with the assignment Puma, Hugo Boss included

The SDAX is a stock market index composed of 50 small and medium-sized companies in Germany. The TecDAX stock index tracks the performance of the 30 largest German companies from the technology sector. The VDAX-NEW Index expresses the variation margin the implied volatility of the DAX anticipated on the derivatives market

A brief Comparison with India

Lack of instruments. Few investor information Stock Exchange promoting only equity. Market cap comparable in both the countries With 5112 BSE has the highest listings no foreign company listing in BSE. Number of IPOs in Germany is much higher than Indias.

Derivative Market

The major exchange market for European benchmark derivatives is the German-Swiss futures and options exchange, Eurex.

Derivatives Instruments
Interest Rate Derivatives (f.e. Euro-Bund Futures, Euro-Bobl Futures) Equity Derivatives (Equity Options and Single Stock Futures based on European, Brazilian and US underlyings) Equity Index Derivatives (f.e. EURO STOXX 50 Index Futures, DAX Futures, SMI Futures) Equity Index Dividend Derivatives Volatility Index Derivatives Exchange Traded Funds Derivatives Credit Derivatives (iTraxx Europe 5-year Index Series, iTraxx Europe HiVol 5year Index Series, iTraxx Europe Crossover 5-year Index Series) Inflation Derivatives Commodity Derivatives (Agriculture Derivatives, Gold and Silver Derivatives, Power and CO2Derivatives in cooperation with EEX) Weather Derivatives Property Derivatives

Interest rate derivative

Fixed Income Derivatives Money Market Derivatives Eurex Bonds Eurex Repo

Equity Derivative
Equity Options Selection by Index Selection by Country Selection by Sector Single Stock Futures Selection by Index Selection by Country Selection by Sector Adjustments due to Corporate Actions

Equity Index derivative

DAX SMI SLI Swiss Leader Index OMXH25 Dow Jones STOXX Indexes MSCI Index RDX USD Index SENSEX KOSPI

Dividend Derivatives
Single Stock Dividend Futures Equity Index Dividend Derivatives

Volatility Index Derivatives

STOXX Mini Futures VSTOXX Options

Credit Derivative
iTraxx Europe 5-year Index Futures iTraxx Europe HiVol 5-year Index Futures iTraxx Europe Crossover 5-year Index Futures

Inflation Derivative

Euro-Inflation Futures

Weather Derivatives

USA Florida Gulf

A look at all the products

All products A brochure for commodity derivative

INSURANCE MARKET GERMANY

In Germany, everyone must have insurance coverage. The requirements state that anyone entering Germany and stays for six months or longer or anyone that moved to Germany for work would need insurance.

Only 0.3% or about 250,000 people in Germany are not insured.

Insurance is tax-financed for children.

Unemployed people pay premiums in proportion to their unemployment compensation, and for the long-term unemployed the government pays the sickness fund a fixed per-capita payment.

The following 36 private insurances make up over 99% of market share (as of February 2007):
1. Allianz Krankenversicherung 2. Alte Oldenburger Krankenversicherung 3. ARAG Krankenversicherung 4. AXA Krankenversicherung 5. Barmenia Krankenversicherung 6. Bayerische Beamtenkrankenkasse 7. BBV Krankenversicherung 8. Central Krankenversicherung 9. Concordia Krankenversicherung 10. Continentale Krankenversicherung 11. DBV-Winterthur Krankenversicherung 12. Debeka Krankenversicherung 13. Deutscher Ring Krankenversicherung 14. DEVK Krankenversicherung 15. DKV Deutsche Krankenversicherungglobal business matchmaker 16. Globale Krankenversicherung (merged with DKV) 17. Gothaer Krankenversicherung 18. Hallesche Krankenversicherung 19. Hanse-Merkur Krankenversicherung 20. HUK-Coburg Krankenversicherung 21. Inter Krankenversicherung 22. Karstadt-Quelle Krankenversicherung 23. LKH Landeskrankenhilfe 24. LVM Krankenversicherung 25. Mannheimer Krankenversicherung 26. Mecklenburgische Krankenversicherung 27. Mnchener Verein Krankenversicherung 28. Nrnberger Krankenversicherung 29. R+V Krankenversicherung 30. SDK Sddeutsche Krankenversicherung 31. Signal Krankenversicherung 32. UKV Union Krankenversicherung 33. Universa Krankenversicherung 34. Victoria Krankenversicherung 35. Wrttembergische Krankenversicherung 36. Zrich Krankenversicherung ( merged with DKV)

LIST OF INSURANCE PLAYERS IN INDIA

 For starters, a German insurance company would offer third-party private liability insurance.

It is the least expensive. However, this type of insurance coverage is also considered the most vital. The great thing about this is that for damages, there is no cap regarding the amount of damaged awarded to the other party. In fact, this policy sold by a German insurance company would include any negligence or misdeed done to a horse or dog.
Another type of insurance provided by a German insurance company is for the homeowner, covering the home but also the contents of the home. With this, the coverage would protect you from loss or damage of your personal possessions, which would be anything inside the property, even built-in kitchen units. A German insurance company would sell a policy that includes coverage for fire, storm damage, burglary, water damage, and vandalism.

 Next is legal assistance insurance, which could be purchased from any list of insurance companies in Germany. For this, if you were to have an argument or misunderstanding with an employer, neighbor, local merchant, tax authority, landlord, or someone associated with a car accident you were in, then this coverage would help. Typically, you would have protection needed and ultimately, save a tremendous amount of money on legal bills.
Accidental Death and Disablement Insurance, which covers 100% of expenses in the case of accidental death, and five to six times the annual income of the individual who becomes disabled. Term Life Insurance is also available, which provides a financial pay out to the beneficiary of the person with the policy when he or she passes away. Annual travel insurance, which is great when taking a holiday or traveling on business to another country.

Type of Insurance Policies IN INDIA Insurance can be broadly classified into two categories life and general insurance.
General Insurance General insurance can be classified as: Vehicle insurance, fire insurance, marine insurance etc. In India, ICICI Lombard, National Insurance, Oriental Insurance, Reliance, Cholamandalam MS, Tata AIG, HDFC Ergo etc provide general insurance. Life Insurance Life insurance can be classified as: Whole-Life Plan. Endowment. Money back. Term plan. Unit Linked Insurance Plan (ULIP) it is a new flavor of insurance which is a mix of investment as well as insurance. Insurance companies collects premium form client and invest the same into equity and debt markets.

PENSION FUNDMARKET
GERMANY

 In Germany there is a long tradition of company pension schemes being provided by the employer. These schemes constitute the second pillar of retirement provision, between state and private pension provision. The Act to Improve Company Pension Schemes, otherwise known as the Occupational Pensions Act (Betriebsrentengesetz), was passed in 1974 with the aim of regulating company pension provision. Until 1998 the employer had sole responsibility for financing company-based pension schemes, social benefits which may be voluntary or contractual. The 1999 Pension Reform Act (Rentenreformgesetz) made legal provision for employees to have contributions deducted from their gross pay and paid into a pension scheme. Total private pension assets in Germany are expected to grow to about 1.25 trillion euros by 2010.

Types of company pension scheme in Germany

Company-based pension schemes with provisions for pensions (Direktzusage) - In the case of company-based schemes, the employer enters
into a contractual commitment to pay the employee a pension. The scheme is financed by the employer or through deductions from the employees gross pay

Benefit funds (Untersttzungskassen)- Benefit funds are legally

autonomous pension funds. They can be operated by one or more enterprises, which must allocate resources to them to ensure that they are able to pay.

Direct insurance (Direktversicherung) In this type of pension scheme the

company, as the insurance policy holder, takes out an individual or group life insurance policy in favour of its employees.

Staff pension insurance (Pensionskassen) Staff pension insurance

(Pensionskassen) comprises legally autonomous pension funds, which may be operated by one or more enterprises. These pay contributions to the staff pension insurance, which funds the pension benefits later paid to the employees. Staff pension insurance schemes guarantee legal entitlement to their benefits and are monitored by the Insurance Supervisory Office.

Promotion of supplementary pension provision pursuant to section 10a of the Income Tax Act - The Bill promoting private pension
plans (Altersverm- gensgesetz) provides for pension funds as an additional type of pension provision in section 112 of the Act on the Supervision of Insurance Enterprises. Pursuant to this Act, pension funds are legally autonomous institutions which operate a funded company pension scheme on behalf of the employer in return for the payment of contributions.

Pension funds (Pensionsfonds) - If contributions to direct insurance, a staff

pension insurance scheme or a pension fund are made from employees private taxable and contributed compensation, they can also claim the special tax allowance or the premium bonus pursuant to section 10a of the Income Tax Act.

 Up to the end of 1999, an overall capital stock of more than DM 600 billion is likely to have been built up in the context of company pension provision. This corresponded to around 51L2% of the financial assets of the domestic non-financial sectors,14 or 9% of the financial assets of private households (including non-profit institutions serving households)

PENSION FUNDS
7820 7821 7822 7823 7824 7825 7827 7828 7829 7830 7831 7832 Zurich UBS UK Value Pn Zurich UBS US Equity ZP Zurich UK Corporate Bond Zurich Assurance Ltd Zurich Assurance Ltd Zurich Assurance Ltd Equity Equity Fixed Interest Equity Equity Equity Equity Equity Equity Equity Equity Fixed Interest Zurich UK EP Zurich Assurance Ltd Zurich UK Equity Zurich Assurance Ltd Zurich UK Equity 2000 AP Zurich Assurance Ltd Zurich UK Equity Income Zurich Assurance Ltd Zurich UK Growth & Income Zurich Assurance Ltd Zurich UK Index Tracker Zurich Assurance Ltd Zurich UK Monthly Income EPZurich Assurance Ltd Zurich UK Opportunities Zurich Assurance Ltd Zurich UK Pref & Fxd Interest Zurich Assurance Ltd

7833 7834 7835 7836

Zurich UK Select Zurich Assurance Ltd Zurich UK Smaller Companies Zurich Assurance Ltd Zurich UK ZP Zurich Assurance Ltd Zurich With Profits Zurich Assurance Ltd

Equity Equity Equity With Profits

OUTLOOK OF PENSION FUND INDUSTRY IN INDIA

Pension fund industry has a very bright future in India. Favorable savings pattern, growing life expectancy and government initiatives like pension reforms are making India as one of the potential prospects for investors looking for pension businesses, according to Indian Pension Fund Market Forecast to 2013 Majority of working population in India expects to have better quality of life or at least maintain the current living standards after retirement.

This is the prime reason why pension plans today account for around 39% of insurance industrys total business.
Life insurers pension and annuity fund is forecasted to grow at a CAGR of around 39% between 2008-09 and 2012-13. H owever, more potential lies under New Pension System (NPS) proposed by the central government.

MUTUAL FUND MARKET

G E R M A N Y

 Germans realization that they may not be able to rely on a state pension to maintain their living standards in retirement is fueling expansion of the countrys mutual fund market. From 1985 to 1995, volume grew at a compound annual rate of 21 percent. Mutual fund market will continue to grow by about 14 percent a year, reaching DM1.5 trillion by the end of 2005 (Exhibit 1). That could translate into revenue of DM26 billion for the industry, compared with about DM8 billion today.

 If current demographic trends continue, the proportion of the population over 60 will rise from 21 percent today to 34 percent by 2030. To pay all these extra people a state pension that matches current levels, contribution rates would have to rise some 20 percent to about 34 percent by 2035.

Subadvisory -Under a subadvisory contract, funds are kept and branded by the client, but a subadvisor manages a specific portionthose assets destined for non-European equity markets. Private labeling - Private-label contracts specify that entire funds are kept and managed by an investment company, although they are still distributed under the clients brand name. This increases revenue by adding transaction fees, which account for 15 percent of the total revenue. Third-party distribution - Under a third-party agreement, an investment company distributes proprietary funds under its own brand name through financial intermediaries such as retail or direct banks, insurance agents, or independent investment consultants. Fully integrated - A fully integrated investment company covers the entire business system, from fund management to proprietary distribution through a branch network, a sales force, or direct sales. It is able to exploit the full revenue potential of mutual funds, including the sales charges that account for about 45 per cent of total revenues.

TOP GERMAN MUTUAL FUNDS

DIRECTORY OF MUTUAL FUND COMPANIES The BVI, or Bundesverband Investment und Asset Management, has funded And launched a central Ombudsman's office for the mutual-funds industry, based in Berlin and led by two judges Gerd Nobbe, a retired chief justice at Germany's federal court, and Wolfgang Arenhvel, president of the Hanseatic Higher Regional Court in Bremen.

Previously, German retail investors could only complain directly to the country's financial-services regulator, BaFin. It is still done in the same way In India.

Top German Mutual Funds iShares MSCI-Germany (EWG) Germany Fund Inc. (GER) New Germany Fund Inc. (GF) Germany Fund Inc. (XGERX) New Germany Fund Inc. (XGFNX) Top Indian Mutual fund companies HDFC Mutual Fund Tata Mutual Fund SBI Mutual Fund Reliance Mutual Fund DSP BlackRock Mutual Fund Kotak Mutual Fund Principal Mutual Fund Sundaram BNP Paribas Mutual Fund Franklin Templeton Mutual Fund Birla Sun Life Mutual Fund

MUTUAL FUNDS IN INDIA

Bharti AXA Mutual Fund Birla Sun Life Mutual Fund BNP Paribas Mutual Fund Canara Robeco Mutual Fund Daiwa Mutual Fund DBS Chola Mutual Fund Deutsche Mutual Fund DSP BlackRock Mutual Fund Edelweiss Mutual Fund Escorts Mutual Fund Fidelity Mutual Fund Fortis Mutual Fund Franklin Templeton Mutual Fund HDFC Mutual Fund HSBC Mutual Fund ICICI Prudential Mutual Fund IDFC Mutual Fund ING Mutual Fund Tata Mutual Fund Taurus Mutual Fund UTI Mutual Fund AIG Global Investment Group Mutual Fund Axis Mutual Fund Baroda Pioneer Mutual Fund Benchmark Mutual Fund JM Financial Mutual Fund JP Morgan Mutual Fund Kotak Mahindra Mutual Fund L&T Mutual Fund LIC Nomura Mutual Fund Lotus India Mutual Fund Mirae Asset Mutual Fund Morgan Stanley Mutual Fund Motilal Oswal Mutual Fund Pramerica Mutual Fund Principal Mutual Fund Quantum Mutual Fund Reliance Mutual Fund Religare Mutual Fund Sahara Mutual Fund SBI Mutual Fund Sundaram Mutual Fund

German Bond Market

Government Securities
one of the largest and most liquid sovereign debt markets in the world highest standards of transparency and reliability in its issuance policy most liquid government securities in Europe Divided into money market and capital market instruments, German Government securities offer original maturities ranging from three months to 30 years. In the money market segment, the Federal Government issues Treasury discount paper (Bubills) with maturities of six and twelve months. The offering of capital market products begins with Federal Treasury notes (Schaetze) with a maturity of two years, followed by five-year Federal notes (Bobls) and Federal bonds (Bunds) with maturities of ten and 30 years.

Eurozone Markets for Sovereign Debt

Global Markets for Sovereign Debt

Government Securities Market

Government Bonds
Five Year Federal Notes (Bobls) Federal Treasury Notes (Schaetze) Treasury Discount paper (Bubils) Inflation-Linked Securities
Inflation-linked five-year Federal Note (Bobl/ei) Inflation-linked Federal Bond (Bund/ei)

Five Year Federal Notes (Bobls)

With original maturities of five years, Bobls cover the middle maturity segment of the German Government yield curve. They account for about 20% of the Federal Governments debt portfolio in 2010. Characteristics

Interest paid annually redemption at par interest calculated on an actual/365 or actual/366 basis not redeemable prematurely and not callable by the issuer

Federal Treasury Notes (Schaetze)

With a maturity of two years, Federal Treasury notes (Schaetze) are the shortest-dated capital market instruments issued by the Federal Government. They account for about 12% of the Governments outstanding debt portfolio in 2011. Characteristics

Interest paid annually redemption at par interest calculated on an actual/365 or actual/366 basis not redeemable prematurely and not callable by the issuer

Treasury Discount paper (Bubils)

Bubills are the Bunds money market securities. New issues come in maturities of six and nine months. Up to twelve months a complete curve of Bubills is outstanding. Bubills account for about ten percent of its total debt portfolio in 2010. Characteristics

Interest paid in the form of a discount redemption at par interest calculated on an actual/360 basis not redeemable prematurely and not callable by the issuer not listed

Inflation-Linked Securities
There are currently five inflation-linked German Government securities in circulation: Three ten-year Federal bonds and two five-year Federal note. These new financing instruments account for over 4% of the Federal Governments debt portfolio. Interest is paid annually in arrears on the basis of an indexed interest rate, adjusted for inflation according to the European reference index (HVPI excluding tobacco). Original maturity is five years, with redemption at least at par according to the development of inflation, and interest calculated on an actual/actual basis.

Issuance Structure

India vs. Germany 10 year bond yield

German Government Bonds Yield

COUPON
3-Month 6-Month 1-Year 2-Year 3-Year 0.000 0.000 1.500 0.250 2.500

MATURITY
07/11/2012 10/10/2012 03/15/2013 03/14/2014 02/27/2015

PRICE/YIELD
99.99 / 0.12 99.96 / 0.13 101.29 / 0.13 100.23 / 0.14 106.45 / 0.26

PRICE/YIELD CHANGE
-0.001 / 0.006 -0.005 / 0.009 -0.009 / 0.009 -0.018 / 0.009 -0.048 / 0.016 04/06 04/06 04/06 04/06 04/06

TIME

4-Year
5-Year 6-Year 7-Year 8-Year 9-Year 10-Year 15-Year 20-Year 30-Year

2.000
0.750 4.000 3.750 3.250 2.500 2.000 6.500 5.500 3.250

02/26/2016
02/24/2017 01/04/2018 01/04/2019 01/04/2020 01/04/2021 01/04/2022 07/04/2027 01/04/2031 07/04/2042

105.99 / 0.45
100.23 / 0.71 117.17 / 0.92 116.87 / 1.14 113.93 / 1.35 107.77 / 1.55 102.49 / 1.73 153.00 / 2.34 144.73 / 2.50 117.54 / 2.44

-0.039 / 0.010
-0.049 / 0.010 -0.053 / 0.009 -0.084 / 0.012 -0.102 / 0.013 -0.089 / 0.010 -0.087 / 0.010 -0.148 / 0.009 -0.136 / 0.007 -0.129 / 0.005

04/06
04/06 04/06 04/06 04/06 04/06 04/06 04/06 04/06 04/06

German Bonds in Trouble

there are other reasons why investors might have lost their previously appetite for safe-haven bunds. Among them: Germany might get sucked into the whirlpool of Eurozone sovereign bonds by guaranteeing more and more of them via European bailout funds and Eurobonds. All would transfer risk to Germany's own finances. Or the opposite: Germany might not do enough, fast enough, to save the euro, and as a consequence, might get sucked down as well. Germany might allow the ECB to print unlimited amounts of money and solve the debt crisis once and for all through inflation and devaluation. Or worse for bondholders: Germany might break away from the euro-zone and issue its own currency either within a mini-euro-zone or alone. The ECB would then be free to solve the debt crisis of the Eurozones remaining members by monetizing their sovereign debt. The euro might well lose 30-50% of its value over the next decade, as the dollar has done. And investors whod bought euro-denominated 10-year bunds at a yield of 1.98% would get screwed royally. In this scenario, Italian 10-year bonds with a yield of over 7% would compensate investors adequately for the expected inflation.

Purchasing German Bonds

By opening a debt register account with the German Finance Agency (GFA) they can be purchased and held in custody simply, conveniently and without charge.

German Government Securities

Government Day-Bond Federal Treasury financing papers Five-year Federal notes

How they can be purchased

Online banking Telephone banking Mail

Federal savings notes

Branch

List of Corporate Bonds

German Banking System

Indian Banking System

Money market
The money market is an instrument that deals with the lending and borrowing of short term finances. Instruments of MM are such as treasury bills(Bubills), bankers acceptance, certificate of deposits, repurchase agreements, commercial paper, Eurodollar deposits, money market mutual funds and Certificates of deposit (CD) use in Germany. Bubills: treasury discount paper with maturities of 6, 9 and 12 months High participation by Government bodies, Individuals and private institutions Regulatory: Deutsche Bundesbank

Money Market- features

Money market in India

Comparison b/w German Retail MMF and German govt. bill(Bubill)

Flows of Money Market Funds

Asset Composition of German MMF

In India