Eurohypo downgrade priced in

Moody's looks set to downgrade Eurohypo's Pfandbriefe below triple A, not that it should matter. The rating move is already discounted, and with German supply in such short supply, its outstandng bonds are set to remain well supported. Moreover, with more ECB cheap money coming, Pfandbrief issuers have very little incentive to pay up and go to the public market.