Germany

Moody’s yesterday (Tuesday) downgraded Deutsche Hypothekenbank’s long term debt rating from Aa3 to A1.

Landesbank Berlin has launched a second issue of mortgage-backed covered bonds off its Daheim 1 programme, one of two LBB structured covered bond programmes.

Deutsche Pfandbriefbank this (Tuesday) morning launched a Eu1.5bn five year mortgage-backed Pfandbrief that will be priced at 50bp over mid-swaps, the tight end of guidance, after around Eu4.5bn of orders were registered for the first benchmark from the Hypo Real Estate group since it was bailed out by the German government in September last year.

Deutsche Pfandbriefbank has awarded a mandate for the first jumbo covered bond from the Hypo Real Estate group since it had to be bailed out by the German government in September 2008.

Deutsche Pfandbriefbank is considering next week launching the first jumbo covered bond from the Hypo Real Estate group since it had to be bailed out by the German government in September 2008, The Cover understands.

Eurohypo on Wednesday launched its first public sector jumbo Pfandbrief in over two years, a Eu1bn five year deal that was priced at 12bp over mid-swaps. A book in excess of Eu1.5bn underwhelmed some market participants away from the deal, but the issuer told The Cover that it was executed at the right price.

Eurohypo will today (Wednesday) price a Eu1bn five year public sector Pfandbrief at 12bp over mid-swaps, the tight end of guidance, despite an order book size that left some market participants unimpressed.

Deutsche Pfandbriefbank is understood to be holding a roadshow that could pave the way for its return to the public markets, with one banker suggesting that a new issue could emerge as early as September.

Bayerische Landesbank launched the first new jumbo Pfandbrief since early July yesterday (Thursday), but although investors placed orders of almost Eu4bn for the Eu1bn eight year issue, market participants are concerned that German covered bond trading levels may be unsustainable.

Bayerische Landesbank is reopening the benchmark covered bond market after the summer lull today (Thursday) with the first new jumbo Pfandbrief since the European Central Bank launched its purchase programme on 6 July. And it is doing so at levels some 20bp tighter than the last comparable transaction.

Tim Armbruster has left Commerzbank to join HRE Group as head of group liquidity management in the treasury management team.

Degussa Bank GmbH is set to become a Pfandbrief issuer, according to Dresdner Kleinwort analysts.