Investing in bonds: Time to include mortgage bonds in your portfolio.
New buildings in a residential area in Munich. Mortgage bonds are currently in high demand. Bild: dpa
Despite the crisis in the real estate market, there is currently a high demand for Pfandbriefe as a secure investment. It is not easy for individual investors to participate, but there are ways to do so.
DGiven that bonds are once again an option thanks to higher interest rates, it is unnecessary to constantly repeat. However, the question remains about how to invest in bonds. This is a concern not only for investors who have not previously delved into this area. Which bonds should one buy? Government bonds, corporate bonds, bank bonds, or mortgage bonds? And if one chooses all of them, in what proportion should they be held? „This year, we have increased our investment in government bonds and reduced the proportion of corporate bonds for our clients,“ says Stefan Rädler from Deutsche Oppenheim Family Office. „In a rather challenging overall economic situation, we aim to lower credit risks.“
There is currently no significant interest rate risk, but the point is not far away. The question is whether and when central banks will prioritize economic support over inflation control. The situation is complex. In some European countries, the need to refinance real estate loans is already evident. In Germany, this is only expected to happen gradually from next year. Nevertheless, core inflation will not return as dynamically as the ECB would like, as wage increases have only just begun. And due to high deficits, little can be expected from fiscal policy.