Debt market round-up

End of an era

The era of easy leg-ups in the league table for underwriters and cheap financing for the Landesbanken is over. From July 18 the German states’ guarantees for their banks were abolished, meaning future financing for Landesbanken will not carry the triple and double A ratings of their owners. It seems clear that the Landesbanken will now turn to covered bonds for much of their senior funding. However, not so apparent is what the underwriters that had depended on Landesbank underwriting to boost their league table position will now do.