An investor buys bonds with a loan that he pledges to the bank as collateral (a transaction in which an investor borrows to buy bonds, using the bonds themselves as collateral). As a rule, such operations are limited to issues with top ratings and issued by highly creditworthy issuers. In addition, experience has shown that institutions set limits on transactions by charging high interest rates on loans. – See share collateral purchase, collateral.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
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https://www.gerhardmerk.de/

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