The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Back to basics

Pfandbrief issuers are increasingly abandoning jumbos in favour of more traditional smaller issues taken to market as strategic need demands.

LIFE FOR MANY Pfandbrief issuers is less miserable than it has been in recent years, but it's still not much fun.

The steady credit deterioration and spread volatility that have made Pfandbrief issuance such a trial over the past two years has slowed down. Germany's revised mortgage bank law gives issuers new and welcome tools, such as the ability to use derivatives in Pfandbrief cover pools to reduce risk. And the more responsible and transparent approach to the primary markets that most issuers have adopted is starting to bear fruit. Several successful deals this year seemed to offer hope to the market, as investors scrambled for highly rated assets.

But uncertainty may reduce capital markets activities to a minimum for the foreseeable future. More changes to the Pfandbrief legal and regulatory framework are needed. Some issuers want to be regular, agency-style liquidity providers. Smaller competitors are more likely to be scaling back their regular visits to the jumbo markets in favour of more strategic issuance when conditions allow, combined with greater use of alternative funding strategies.


You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree