DZ hits covered bond sweet spot with well-timed Pfandbrief

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By Bill Thornhill
22 Oct 2020

DZ Hyp returned to the covered bond market for the fourth time this year on Thursday to issue a €1bn eight year mortgage Pfandbrief. The deal showed that any uncertainty over the relative value of covered bonds has been firmly swept away after the European Union’s blow out debut earlier this week.


After mandating joint leads Barclays, BayernLB, Danske Bank, DZ Bank, ING and UniCredit on Wednesday, DZ Hyp opened order books on Thursday for a benchmark mortgage Pfandbreif due October 2028 with price guidance of 6bp area over mid-swaps. 

After 30 minutes orders exceeded €1bn and within one hour, ...

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