Old product, new law

Another round of changes to financial legislation could reshape the German covered bond market. But it isn’t the new Pfandbrief Act that has got banks most excited. Laurence Neville reports.

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Buschmann: the new law
enables German issuers to
remain competitive

A HUNDRED AND five years after the German Mortgage Bank Act was passed and 10 years after the jumbo Pfandbrief was born, the German covered bond market, rightly seen as the pioneer of the European sector, has just undergone two substantial changes: the new Pfandbrief Act; and a change of law relating to the funding register.

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