Bonds — 22 brokers

What are Bonds?

A bond is a debt instrument: you lend money to a government or company and receive periodic interest (coupon), with the principal repaid at maturity. Government bonds (Dutch state bonds, German Bunds) are considered safe; corporate bonds offer higher yields but more risk. High-yield bonds carry even greater default risk. Rising interest rates push existing bond prices down — the longer the duration, the greater this interest rate risk. For Dutch investors, individual bonds are often illiquid; bond ETFs are more practical. Tax-wise, bonds fall under Box 3, not Box 1.