Pfandbrief unflustered as NordLB subsumes Deutsche Hypo

NordLB
By Bill Thornhill
08 Jan 2021

The combination of Deutsche Hypo into NordLB has failed to cause much of a stir in the covered bond market as, even though the merged cover pools will be very different, spreads between their Pfandbrief curves have little room for manoeuvre.

“There have been no big price moves,” said one trader on Thursday in the wake of NordLB’s announcement that its Deutsche Hypo subsidiary would be merged into the parent bank. 

“Deutsche Hypo was trading a bit wider than the rest, but spreads are so tight anyway there’s not a ...

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