Best covered bond issuer: Rheinische Hypothekenbank
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Best covered bond issuer: Rheinische Hypothekenbank

Germany's Rheinhyp has convincingly kept its lead this year in the covered bond sector with a string of deals put together by a dedicated structured Wnance team that has only been in place for just over a year. Rheinhyp's securitization of its European commercial mortgages across several countries broke new ground in Europe's cross-border structured Wnance markets. Even though the legal hurdles for such a deal might have proved insurmountable, Rheinhyp and Barclays Capital together found a structure that should ignite interest from other asset-backed issuers to use similar synthetic structures to place pan-eurozone portfolio deals into the market.


Says David Wells, director of high-yield capital markets at Barclays Capital in London: "This deal took more than a year to put together and both Barclays and Rheinhyp worked very hard on the structure. It took a long time, but it certainly paid off."



The innovative synthetic cross-border structure packaged together 99 commercial mortgages in Austria, France, Germany, the Netherlands and Spain and gives investors access to credit risk, while Rheinhyp remains responsible for servicing the loans. The issuer managed to skirt round the legal barriers involved in putting together a multi-jurisdictional deal by leaving the loan portfolio on the issuer's balance sheet.




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