Pfandbriefe issued by Deutsche Pfandbriefbank on Wednesday and Hypo Tirol on Thursday struggled to find enough demand. Though spreads are not expected to widen, the deals showed investors are more discerning as uncertainty builds ahead of the European Central Bank (ECB) asset purchases, which are due to commence in November.
Hypo Tirol was set to price a €500m October 2026 in line with initial guidance at 14bp over mid-swaps, with demand of €400m, including €70m of joint lead interest.
The Aa1 rated mortgage covered bond offered a new issue concession of about 4bp. It compared to the bank’s outstanding