Zinsanlage

English translation: Interest-bearing investment

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
German term or phrase:Zinsanlage
English translation:Interest-bearing investment
Entered by: Marc Svetov

01:28 Feb 25, 2016
German to English translations [PRO]
Bus/Financial - Investment / Securities / Own Risk and Solvency Assessment
German term or phrase: Zinsanlage
"Das Wertrisiko beschreibt die Gefahr, dass sich durch Veränderungen der Kapitalmarktzin- sen auch die Marktwerte sämtlicher Zinsanlagen mit folgendem Effekt ändern:
Steigende Zinsen bedingen fallende Marktwerte der Zinsanlagen und umgekehrt.
Werden die Zinsan- lagen im Anlagevermögen gehalten, gibt es keine Auswirkungen auf das XYZ-Ergebnis."

Interest-bearing investments? Any help would be mch appreciated. Thank you very much in advance.
Marc Svetov
United States
Local time: 06:27
Fixed-income investment
Explanation:
This inverse relationship between interest rates and prices is usually described using "bonds", e.g. the price of a bond rises when interest rates fall and falls when interest rates rise.

Of course, this is only true for bonds with fixed coupons, i.e. "fixed-income securities".

In your case, however, since the German term uses "Anlage", this would be changed to "fixed-income investments".

See the Wikipedia page for "Fixed Income": https://en.wikipedia.org/wiki/Fixed_income

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Note added at 6 hrs (2016-02-25 07:36:26 GMT)
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"Interest-bearing investment" is also fine. When "interest" is mentioned, people generally assume a fixed interest rate, just like bonds are generally assumed to be fixed coupon bonds.

--------------------------------------------------
Note added at 14 hrs (2016-02-25 15:36:49 GMT)
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If there is any confusion over what "fixed-income" means, the Wikipedia article above does a decent job of explaining it. It basically means that a security, investment, etc. gives a fixed stream of income. This usually makes us think of a bond, since we normally think of fixed coupon bonds.

There are, however, other kinds of bonds. Floating-rate notes, for example, where the rate paid by the note changes according to changes in a reference rate.

https://en.wikipedia.org/wiki/Floating_rate_note

The inverse relationship between price and interest rate might not apply to bonds that are not fixed-income bonds.

But floating rate notes are nevertheless interest-bearing securities. They just bear interest at a variable rate.
Selected response from:

Bruce Campbell
Local time: 07:27
Grading comment
Thanks!
4 KudoZ points were awarded for this answer



Summary of answers provided
4investment
Dhananjay Rau
4Fixed-income investment
Bruce Campbell
Summary of reference entries provided
Zinsanlage
David Hollywood

Discussion entries: 2





  

Answers


12 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
investment


Explanation:
Das Modell basiert auf der Annahme, dass die Aktienrenditen um einen Mittelwert, der einer risikofreien Zinsanlage entspricht, statistisch normal verteilt sind.

The model is based on the assumption that stock yields are normally distributed in statistical terms around a mean corresponding to a risk-free investment in an interest-bearing security.

Dhananjay Rau
India
Local time: 16:57
Native speaker of: English

Peer comments on this answer (and responses from the answerer)
neutral  AllegroTrans: you have not translated the whole of this term
13 hrs
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6 hrs   confidence: Answerer confidence 4/5Answerer confidence 4/5
Fixed-income investment


Explanation:
This inverse relationship between interest rates and prices is usually described using "bonds", e.g. the price of a bond rises when interest rates fall and falls when interest rates rise.

Of course, this is only true for bonds with fixed coupons, i.e. "fixed-income securities".

In your case, however, since the German term uses "Anlage", this would be changed to "fixed-income investments".

See the Wikipedia page for "Fixed Income": https://en.wikipedia.org/wiki/Fixed_income

--------------------------------------------------
Note added at 6 hrs (2016-02-25 07:36:26 GMT)
--------------------------------------------------

"Interest-bearing investment" is also fine. When "interest" is mentioned, people generally assume a fixed interest rate, just like bonds are generally assumed to be fixed coupon bonds.

--------------------------------------------------
Note added at 14 hrs (2016-02-25 15:36:49 GMT)
--------------------------------------------------

If there is any confusion over what "fixed-income" means, the Wikipedia article above does a decent job of explaining it. It basically means that a security, investment, etc. gives a fixed stream of income. This usually makes us think of a bond, since we normally think of fixed coupon bonds.

There are, however, other kinds of bonds. Floating-rate notes, for example, where the rate paid by the note changes according to changes in a reference rate.

https://en.wikipedia.org/wiki/Floating_rate_note

The inverse relationship between price and interest rate might not apply to bonds that are not fixed-income bonds.

But floating rate notes are nevertheless interest-bearing securities. They just bear interest at a variable rate.

Bruce Campbell
Local time: 07:27
Specializes in field
Native speaker of: Native in EnglishEnglish
PRO pts in category: 18
Grading comment
Thanks!

Peer comments on this answer (and responses from the answerer)
neutral  AllegroTrans: I don't see "interest-bearing" and "fixed-income" as the same thing - interest rates can go up or down
7 hrs
  -> You are right! That is why I initially said "fixed-income investment". See my note above
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Reference comments


4 mins peer agreement (net): +1
Reference: Zinsanlage

Reference information:
www.investorwords.com/12607/interest_bearing_investment.html
Definition of interest bearing investment: Any financial instrument that earns interest, such as a bond, certificate of deposit, or money market fund....

David Hollywood
Works in field
Native speaker of: English
PRO pts in category: 57

Peer comments on this reference comment (and responses from the reference poster)
agree  AllegroTrans
13 hrs
  -> thanks AT
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