Bunds & Deutsch Bank

MoM I started this thread and I'm delighted to have received very insightful comments etc from all including yourself so thanks to all.
However I notice Mom that you question/challenge other viewpoints which is good. But I'd be very interested to hear your views on this dilemna i.e. putting money outside Ireland. Please give me your opinion and not a rejection or challenge of others.
 
149oaks said:
MoM I started this thread and I'm delighted to have received very insightful comments etc from all including yourself so thanks to all.
However I notice Mom that you question/challenge other viewpoints which is good. But I'd be very interested to hear your views on this dilemna i.e. putting money outside Ireland. Please give me your opinion and not a rejection or challenge of others.
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My own opinion is to opt for diversification. Accept that you may lose a couple of % but what is that in the greater scheme of things. A lot better than 50% devaluation if Ireland ends up using Lenny Pennies or in some Tier II euro. Part in europe, part out of europe. Part in currency part out of it. Gold and shares in companys such as CocaCola and Kraft that will be here long after any doomsday.

Moral of the story is dont have all your eggs in one basket even if its a German one.

The euro will probably survive, but not in its current form. But are you willing to bet it will and that there won't be cantagion?

Its all about your risk appetite. Mine is risk averse.
 
Hi,

I am also considering buying Bunds and am looking to do it through an irish broker such as Davy's or Goodbody's. My sole purpose is to protect against the possibility of a Euro break up and the introduction of a devalued punt. I understand there will be fees and no ROI. My circumstance is that I have a significant house deposit saved and am trying to protect at least some of it. I am not in a position to travel to Germany. Any Thoughts?

Thanks
 
If you had your money set aside for a house, in the event we return to the punt won't house prices drop too. So you will be in the same boat as the majority of people in the market looking for a house who had savings devalued. I know those who availed of the German bank/bonds options if they were in the market for the same house as you would be ahead but how many times could that occur in reality?
 
MoM said:
Wow, don't contradict yourself there. They give crap yields but you have to worry about the tax on this crap yield. The tax will be insignificant.

If investors considering this are worried about a small tax differential I can only assume they are doing it for the wrong reasons and havent done their research to differentiate between the different institutions and likely scenarios if/when a catyclismic event happens.
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It's not a contradiction, it is simply something that has to be kept in mind when choosing between cash or bunds in Germany. I fully agree with your point about diversification, but there are ways of diversification that also provide higher income.
 
fuzzyfrog said:
If you had your money set aside for a house, in the event we return to the punt won't house prices drop too. So you will be in the same boat as the majority of people in the market looking for a house who had savings devalued. I know those who availed of the German bank/bonds options if they were in the market for the same house as you would be ahead but how many times could that occur in reality?
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You wont be in the same position as imports will be more expensive and will likely eat part of your savings. You probably wont want to buy a house anyway with the huge interest rates to curb inflation in this scenario.

Chris said:
It's not a contradiction, it is simply something that has to be kept in mind when choosing between cash or bunds in Germany. I fully agree with your point about diversification, but there are ways of diversification that also provide higher income.
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Okay. But the tax amount on a small yield will be very small. I'd be way more concerned about the safety element because if you re doing it for any other reason you're not looking at the bigger picture.

But i think we agree mainly.
 
Safety Bunds Held Personally v Part of a Life Fund

Any View on bunds purchased as part of investment policy as opposed to purchasing them yourself?
I know its cheaper to purchase them yourself, but are they any more or less safe as part of an investment policy? Zurich for example have their own german bond fund. I already have money in other funds with zurich, and this may be a cheaper route for me
 
MoM said:
Okay. But the tax amount on a small yield will be very small. I'd be way more concerned about the safety element because if you re doing it for any other reason you're not looking at the bigger picture.

But i think we agree mainly.
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Absolutely agree!
 
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