Germany

Eurohypo yesterday (Thursday) issued the first 10 year jumbo Pfandbrief this year, a Eu1.5bn mortgage-backed deal that was priced at 70bp over mid-swaps. The level is “extremely tight”, the issuer told The Cover.

Eurohypo will today (Thursday) price a 10 year mortgage-backed Pfandbrief 10bp tighter than a seven year deal that it sold just five weeks ago.

Moody’s yesterday (Tuesday) put Landesbank Baden-Württemberg’s Aa1 senior debt rating on review for possible downgrade.

Westdeutsche Immobilienbank yesterday (Tuesday) priced a Eu500m three and a half year mortgage Pfandbrief, spurring the primary market back into action after more than a week devoid of new issues. The issuer told The Cover that he is glad that he held firm when considering a new issue earlier this year.

Westdeutsche Immobilienbank today (Tuesday) broke the lull in primary market activity by launching a Eu500m Pfandbrief after more than a week without new jumbo supply.

Four new members were appointed to the Association of German Pfandbrief Banks’ board at the association’s member meeting in Berlin on Friday, and Jens Tolckmitt took over the position of general manager.

Moody's and SEB AG are in discussions about the latter’s proposals to enhance its covered bond programmes to avert a downgrade, the rating agency said yesterday (Monday).

Government guaranteed issuance, illiquidity, and potential downgrades – in spite of these challenges, the Pfandbrief market has proven resilient in 2009. In this roundtable, produced in co-operation with the Association of German Pfandbrief Banks, leading market participants tackle these issues and discuss the impact of the European Central Bank’s Eu60bn purchase programme and the amendment to the Pfandbrief Act.

Covered bonds are edging their way back into the Swiss franc market. As well as an appearance from Pfandbriefbank schweizerischer Hypothekarinstitute, Landesbank Baden-Württemberg sold a public sector Pfandbrief this week and Swedbank is bookbuilding for a mortgage-backed covered bond.

Fitch has increased the market value decline (MVD) and indexation assumptions it assigns to German covered bonds and residential mortgage-backed securities, and hence its loss severity assumptions for foreclosed residential properties securing defaulted mortgage loans in Germany.

In brief: Moody’s today (Friday) assigned a provisional Aaa rating to a planned first issue off a structured covered bond programme of Landesbank Berlin, Daheim 1, outside Germany’s Pfandbrief framework.

Moody’s yesterday (Wednesday) changed the outlook on Deutsche Schiffsbank’s A2 rating from stable to negative.