Some Länder are more equal than others

In spite of Germany’s well developed support system for the federal states, investors clearly do not believe that the 16 Länder share the same credit quality, meaning that the funding status quo will remain broadly in place, with the weaker states accessing the market through pooled jumbo issues and the stronger borrowers issuing on a standalone basis. Unless of course, the German finance ministry changes its mind and endorses the Deutschland Bond concept. Stranger things have happened — even in Germany. Philip Moore reports.