Germany

Deutsche Pfandbriefbank (PBB) this week attracted greater demand than Aareal Bank for its December 2021 sterling Pfandbrief, even though it was priced at the same spread and had a lower credit rating. Both deals had a lot of German demand reflecting a sterling’s pick-up to euros.

The State of North Rhine-Westphalia won strong demand on Wednesday for its longest ever trade, allowing it to print a size almost double its target.

GlobalCapital’s 12th annual covered bond awards took place this year at BMW Welt in Munich on Thursday, September 13. The awards reflected the judgment of almost 400 market participants, including 170 investors, who reported buying €100bn of covered bonds in the past 12 months and with over €600bn in covered bond assets under management.

The State of North Rhine-Westphalia is preparing to bring its longest ever euro benchmark.

Landesbank Hessen-Thüringen Girozentrale (Helaba) attracted a thinly oversubscribed order book for a €1bn seven year mortgage Pfandbrief issued on Tuesday. Even though the bonds offered a generous premium to their own curve, they were priced much tighter than other recent seven year benchmarks.

LafargeHolcim has returned to the Schuldschein market looking for an initial size equivalent to €300m, across dollar and euro tranches.

The European Mortgage Federation — European Covered Bond Council (EMF-ECBC) has reached consensus on four critical areas of concern in response to a draft report from the European Parliament’s Economic & Monetary Affairs Committee (ECON) on the European Commission’s proposals for a covered bond legislative framework.

Knorr-Bremse, the historic German manufacturer of brake systems for trucks and trains, has started one of the largest German IPOs of the year, having filed an intention to float document on Monday morning.

Nasdaq Clearing said early on Monday that it had replenished 90% of its member default fund, adding it had “no indication” that a member would shirk on its commitments. The deadline for replenishment is on Monday.

GlobalCapital understands that next month the Loan Market Association (LMA) will publish a set of standardised documentation for issuance in the Schuldschein market. Market players see this as a step in the right direction, as opposed to a leap.

Nationale Nederlanden Bank has mandated leads for a 10 year euro denominated conditional pass through (CPT) covered bond and Aareal Bank has issued a fixed rate sterling Pfandbrief.

Germany’s largest gas transmission system operator Vier Gas wasted no time on Monday in launching a €500m 10 year corporate bond deal it had marketed to investors last week. The demand it received justified that move.