Garant bonds combine the participation in the performance of an underlying with the minimum redemption at a predefined level of the nominal amount at maturity. The credit rating of the issuer must be considered.

Garant bonds offer participation in various underlyings and thus the chance of interesting returns. There can be one or more underlyings, which can be equities, indices, commodities, or combinations thereof. Certain themes, such as sustainable investments, can also be targeted with this type of investment. With a bond, you can thus invest broadly diversified and efficiently.

In addition to participation, there are also garant bonds, which have a minimum coupon - usually paid annually - that is paid regardless of the performance of the underlying. The current market interest rate level is the decisive factor for the payout of a coupon, the term, and the minimum redemption amount.

The strike price is fixed at the beginning of the term. This equals the closing price of the underlying. In the case of variants with a coupon, an annual interest payment is made irrespective of the performance of the underlying.

Shortly before the end of the term, on the valuation date, the performance of the underlying since the price-fixing date is calculated. Simple conditions are used to determine the redemption amount to be paid at maturity. If the performance of the underlying is negative, the capital guarantee applies. If the performance of the underlying is positive, a higher redemption amount is paid in accordance with the bond conditions