It didn't take long for France to notice the success
of Germany's market in euro Pfandbriefe. In June, lawmakers in
Paris copied and fine-tuned the German formula that investors love.
But unlike Germany's Hypotheken and Landesbanks, the French issuers
of obligations foncières don't rely on interest-rate punts to make
a profit. French Pfandbriefe work how the German original was
supposed to. Marcus Walker reports