Despite several signs of becoming more popular, domestically issued corporate bonds continue to lead a somewhat neglected existence in Germany. Above all, because one-half of paid interest on BIS Review 77/2000  2  permanent debts is included in trade earnings, German enterprises are prompted to issue bonds through foreign financing vehicles.
Abolishing that regulation would be desirable but would probably be realistic only in connection with the abolition or reorganisation of trade tax as such. Overall, the “corporate bonds” sector is growing sharply in Germany - as it is throughout the euro area.