DZ issues most negative yielding covered bond

By Bill Thornhill
07 Sep 2020

DZ Hyp priced a well-subscribed €1bn five year Pfandbrief on Monday through fair value and with the largest negative yield of any covered bond issued this year. The syndication is strong encouragement for hesitant issuers considering deals in this tenor, where yields are at their most punitive.

With a reoffer yield of minus 0.42%, DZ Hyp’s €1bn five year mortgage Pfandbrief became the most negative yielding covered bond of the year. The transaction was priced on Monday at a final reoffer spread of flat to mid-swaps with orders of €2bn.

Dekabank, Deutsche Bank, ...

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