Aareal prices inside curve in show of Pfandbrief strength

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By Bill Thornhill
21 Oct 2020

Aareal Bank issued a short six year Pfandbrief on Wednesday at a deeply negative yield and with a negative concession. Investor demand was impressive, illustrating that Pfandbriefe, twinned with Aareal’s loan origination standards, were sufficient to offset any concern over the hotel and retail exposures in its collateral pool. At the same time DZ Hyp has mandated leads for an eight year Pfandbrief.

Aareal Bank opened order books on Wednesday for a €500m no-grow 0.01% August 2026 mortgage Pfandbrief rated Aaa by Moody's through joint lead managers Helaba, BNP Paribas, Commerzbank, Deutsche Bank and UniCredit with initial guidance of 5bp over mid-swaps.

The transaction was perfectly timed to take advantage of ...

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