Double A BHH prices year's tightest deal

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Double A BHH prices year's tightest deal

Berlin Hannoversche Hypothekenbank (BHH) has issued the first €1bn mortgage backed German Pfandbrief of 2012. And even though it was not triple A rated, the deal achieved the tightest spread of any so far this year. The depth and breadth of demand it attracted not only pays testimony to the scarcity of German supply but also suggests that investors focusing more on capital preservation than on relative value.

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