For bond buyers, one thing is most important: that the debtor pays.

This is not so sure about China Evergrande at the moment.

Although the group has announced that it will make the interest payment due on Thursday, some creditors only believe when they have the money.

In case of doubt, Evergrande still has the usual grace period of 30 days.

Only then does it get serious.

It's not just serious in China because of Evergrande.

The country is basically a credit-driven economy, writes asset manager Nordea.

Every time China goes off the gas, there are victims - every 36 months a "Lehman", which is then usually released by the authorities.

At the moment, the credit impulse from China is negative, which will have a noticeable impact on Germany, according to Citywire analysts.

Martin Hock

Editor in business.

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In the past, government bonds would certainly have been used in the face of such prospects.

After all, there are two on offer: one from Austria, which pays 0.25 percent a year in interest for 15 years, and one from Great Britain, where there is even 0.875 percent for only twelve years.

Inflation will not compensate for this, as the pound should appreciate to the level of the early 2000s.

And who wants to bet on it?

Or about 18 percent interest on a bond from British HSBC in Turkish lira with a one-year term?

Highly risky, and on top of that, the experience is that in practice German private investors often enough do not get hold of such mini-issues by foreign banks (only 60 million lira).

Increasing returns - regardless of the election result

So there are only SME bonds left. The Estonian Iutecredit is offering a five-year bond with a coupon of 9.5 to 11.5 percent - depending on the success of the issue. The interest rate is high, as are the risks, because the business model is hard to swallow: installment loans in the poorest countries in Europe such as Albania and Bosnia. The offers from Jes.Green and Reconcept sound a little more calming. Some finance photovoltaic systems that are leased to homeowners, others develop and invest in projects in the field of renewable energies. It says little about the solidity of the company.

The bond market is likely to be of little interest in the Bundestag election on Sunday.

Ludovic Colin, portfolio manager at Bank Vontobel, believes that a change of course in financial policy is unlikely.

Higher government spending is likely to affect the entire euro area and fuel reflation expectations - which the ECB would welcome.

This in turn is likely to take a more relaxed stance in view of the expected higher growth, so that Colin expects increasing yields and considers European government bonds to be less attractive - regardless of the general election.