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.

Covered Bonds: Pfandbrief keeps new issue levels buoyant

Looming implementation of the EU Prospectus Directive is adding momentum

As the jumbo Pfandbrief celebrated its 10th birthday, a healthy June deal pipeline promised to help keep FIG issuance bubbling and support overall primary market volumes. Bankers predict around €20 billion of covered bond issuance this month, with smaller, illiquid deals adding €3 billion to the total. Nearly half of that supply will come from Germany.

At the time of writing, Bayerische Hypo-und Vereinsbank (HVB) was planning a rare public sector Pfandbrief and was aiming to issue between €1.25 billion and €1.5 billion. Another keenly anticipated issue, from Deutsche GenossenschaftsHypothekenbank (DG Hyp) was due to price on June 6. DG Hyp opened the jumbo market in January this year with its €2 billion 2012 deal. Düsseldorfer Hyp and Essen Hyp had also announced euro benchmark issues for June.

"There is added momentum because of the looming implementation of the EU Prospectus Directive and because the market looks more resilient than a couple of weeks ago," says Thomas Cohrs, head of origination, financial institutions DCM at HVB. It's not yet clear precisely how Germany will implement the prospectus directive, and Pfandbrief issuers have rushed to the primary markets to issue under the old regime. "And for psychological reasons, issuers want to get covered bonds into the market before the new Pfandbrief law takes effect," adds Cohrs. 

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