Pfandbrief banks scramble to supply long end
Münchener Hypothekenbank issued a tightly priced nine year Pfandbrief on Wednesday, just as Commerzbank mandated leads for a 10 year. The deals are likely to be followed by others from core Europe and especially from borrowers looking to fund at the long end, where execution risks may rise in the run up to the European Central Bank’s meeting on September 7.
After mandating BayernLB, DekaBank, DZ Bank and UniCredit late on Tuesday, Münchener Hypothekenbank opened order books for a nine year mortgage-backed Pfandbrief due October 2026 on Wednesday, with initial guidance of 10bp area through mid-swaps.
The transaction benefited somewhat from pent-up demand, as the first long dated Pfandbrief
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