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Bonds are fixed-interest securities. Companies or governments issue promissory bills on the capital market. They use bonds as a means of financing. When you buy a bond, you lend money to a company or a state. They are securities that grant the holder certain creditor rights. They certify a claim to repayment of a certain amount of money at the end of the term ("redemption") and an agreed interest rate ("coupon") during the term.

From the point of view of the investor, bonds are certificates of debt (debt securities). In most cases, they are an interest-bearing form of investment with a specific term. As the holder of a bond, you are a creditor of the party issuing the bond (issuer). The creditor can therefore demand payment of interest and repayment of the principal at the latest at the end of the term. The creditor's rights are the right to the assets (repayment of the principal), as well as the right from the assets (interest). The investor has no say or participation rights in the company. On the other hand, creditors are given preferential treatment in the event of insolvency.

The issuer is liable with all its assets. Bonds can also be issued with additional liabilities and guarantees.

From an issuer's point of view, bonds are a special form of borrowing medium- to long-term funds (raising capital). From the issuer's point of view, bonds are therefore certificates of borrowing. For the issuer, bonds are therefore liabilities whose repayment is due on a fixed date. In economic terms, a securities issue promotes economic growth and creates or secures new jobs.

A coupon is the interest rate that investors receive for their capital. On the coupon due date, the investor receives the agreed interest credited to his settlement account.

The ISIN/WP code is the individual international securities identification number for the security in question.

* Current income from bonds counts as income from the transfer of capital and is taxed in Austria at the special rate of 27.5%. We take care of the taxation - we retain the KESt and then automatically deduct it. For natural persons, the capital income is thus considered to be taxed at the end of the year and no longer has to be included in the tax return. In Germany, current income from bonds is taxable at 25% final withholding tax plus solidarity surcharge and, if applicable, church tax. As with all investment income, however, the lump-sum savings allowance of €801 for singles and €1,602 for married couples also applies to bonds.

Rendity's bond makes it possible to invest directly in renowned real estate companies. Austrian investors also have a tax advantage due to the KESt taxation, as this income is not subject to income tax. In addition, distributions can be expected annually due to the fixed-income structure. Thus, a regular income can be expected over a medium-term period. Ultimately, the bond is associated with greater security compared with similar financial products, since on the one hand investments are made in real estate companies with a certain size and good credit rating, and on the other hand creditors are treated better in the event of insolvency.