Germany

In brief: Deutsche Hypothekenbank AG Hannover Berlin yesterday (Wednesday) priced a Eu500m three year mortgage Pfandbrief.

Dexia Kommunalbank today (Monday) increased its June 2014 public sector Pfandbrief by Eu500m.

BNP Paribas will today (Thursday) price a four year covered bond, its fourth of the year, at the ambitious level it was said to have been targeting. Meanwhile, Berlin Hyp nipped into the market.

SEB AG this (Tuesday) morning issued a Eu500m three year deal via UniCredit. Meanwhile, the European Central Bank has reported that Eu162m of covered bonds have been purchased under its programme.

Standard & Poor’s this week withdrew its ratings of the public sector Pfandbriefe issued by Deutsche Hypothekenbank AG Hannover Berlin. The rating agency’s proposed changes to its covered bond rating methodology and their possible consequences played a role in the issuer’s decision to request the withdrawal, a spokesperson at Deutsche Hypo told The Cover.

Deutsche Kreditbank on Tuesday priced its inaugural mortgage-backed Pfandbrief, a Eu500m five year deal that was nearly four times oversubscribed. However, the issuer told The Cover it has no plans to move into jumbos.

Deutsche Kreditbank is pricing its first mortgage backed Pfandbrief issue this (Tuesday) afternoon, a Eu500m five year deal that will come at the tight end of guidance.

Moody’s on Friday placed the Aa2 long term deposit and debt ratings of Sparkasse KölnBonn on review for possible downgrade.

A Eu9.2bn book for Deutsche Postbank’s Eu1bn five year public sector Pfandbrief debut on Friday left market participants questioning the healthiness of such a high level of oversubscription.

Deutsche Postbank is this (Friday) morning understood to have built a book for its debut jumbo public sector Pfandbrief that is believed to be by far the largest for a covered bond in more than a year and one of the biggest ever.

Deutsche Postbank is planning a debut public sector covered bond transaction, expected next week, that will be half-backed by mortgages guaranteed by KfW, an arrangement that promises to extend the amount of collateral that can be viably used as cover for German Pfandbriefe. Meanwhile, Deutsche Kreditbank’s mortgage covered bond programme has been rated by Moody’s.

Moody’s yesterday (Monday) said that the risk that covered bondholders in Austria and Germany could be deprived of their priority right over any assets located outside the European Economic Area needs to be addressed by issuers.