The German corporate bond market is still less developed than in the United States. However, there are indications that the emergence of corporate bonds as a means of long-term financing has become increasingly prominent in supplementing the use of bank loans.
The momentum and strength of such an underlying trend seem to be influenced to a large degree by technological advances, the pace of structural change in the corporate sector and economic policy reforms, such as in tax law or old-age pension provisions. Additional impetus is being provided by European monetary union.