Between two stools is comfortable for pension ABS as Germany takes Eu8bn
The German government increased its securitisation of pension payments for retired postal and telecom workers from Eu6bn to Eu8bn this week, as pricing half way between government agency paper and top quality ABS proved a hit with investors.
There had been controversy before the deal about how to classify it — its 100% risk weighting and issuance from an Irish special purpose vehicle suggested a securitisation; yet the cashflows backing it are explicitly guaranteed by the Federal Republic of Germany.
But lead managers
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