Pbb brings hungry covered bond buyers out to 15 years
Deutsche Pfandbriefbank launched the longest German Pfandbrief in a decade this week, pricing a €500m 15 year deal. Its success in an unusual tenor illustrates just how flexible investors have become, said syndicate officials. But bankers are divided over the potential for more ultra-long dated covered bonds.
Pbb sold its deal at 40bp over mid-swaps on Wednesday after building a 1.1bn book in under an hour. The lightning fast execution left some investors empty handed. "It was simply over too quickly for us to get involved," said one German fund manager.
Ultra-long dated covered bonds have
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