Subdued Postbank keeps a lid on Pfandbrief spreads

Deutsche Postbank priced a Eu1bn seven year mortgage backed deal on Tuesday at the bottom end of size expectations. But while the pricing of 8bp over mid-swaps might not have excited investors, it provided some relief to other Pfandbrief issuers in the pipeline. However, further attempts to keep up the primary market’s busy pace of the past month were stymied due to fears over upsetting a delicately poised market by oversupplying transactions.