This means that the issuer, so the issuing credit institution guarantees the repayment of the invested money (not the return on investment!). It is important to know that the seller and the issuer must be not necessarily identical, but often the Bank sold certificates of other, foreign, and international circumstances issuers. The issuer, not the known and familiar Bank granted the capital guarantee if uberhaupt-. “Market situation in Germany (u.a.Quelle: TiLP, 6.Tag of the banking and capital market law): Germany is the world market leader” in certificates. The reason is according to many experts in the attractive incentives for the seller (so the Bank) in the form of commissions. In other States, the certificate trading is restricted and is subject to strict government controls. To end of August 08 (before the insolvency of Lehmann on the SE), 370,000 different certificates products on the market were in Germany.
Per trading day came in July 2008 alone 2,600 new products added. Only 12% of bank customers were actively asking for certificates and less than half of the individuals belonging to the Group of self decision makers. This means that these investors were no independent decision to buy these certificates, but the credit institution in the framework of an asset management or similar for the client carried out the decision and the purchase of the certificate. According to some experts do not really understand about 90% the owner of certificates, how they have invested their money. Disadvantages and risks of certificates: In Germany so far not even there an approval procedure for certificates, in principle anyone can thus install certificates on the market and the investor enjoys no bankruptcy protection. The crux of certificates is that, that the warranty is worth only as much as the creditworthiness of the issuer, so the Bank that is issuing the certificate. If the Bank goes bankrupt as in the case of Lehman Brothers the guarantee is nothing more value and money lost.