Buy government bonds

Buying government bonds

Bonds issued by the Dutch state are a safe investment and have a low risk. If you are considering buying government bonds , here you will find the necessary information that may be important.

Government bonds are available from various brokers. View the range of various brokers.

The different degrees of security of government bonds

There are several categories of government bonds:

1. Bonds of high-credit-rated states This is generally the least risky way to invest your money. The Netherlands is an example of a state with good credit.
   
2. Bonds from countries with a slightly lower credit rating. These are safe government bonds , as the state in question can meet its financial obligations.
   
3. Bonds of less solid countries These are the riskiest government bonds . Bonds of countries such as Greece are also often called “junk bonds” .

Why are government bonds a smart choice?

Government bonds are often part of the total package of investments to spread risks. The division of an investment portfolio into shares, bonds and cash depends on the chosen investment profile. This allows you to put together an investment portfolio that matches the risk you want to take and the return you wish to achieve, the so-called risk profile.

Depending on the state in which you invest, you can opt for more or less return and a corresponding risk. With a lower return, you are better assured that you will receive your investment back.

What influences the value of a government bond?

The value of a bond is largely determined by the price and the associated yield. The following factors play a role in this:

• current interest rate
• degree of creditworthiness of the government issuing the bonds
• remaining term
• degree of tradability of the government bond in question
• interest given on the bond