Germany

Aareal Bank today (Thursday) priced a Eu500m three year mortgage-backed Pfandbrief, taking advantage of positive market conditions to launch a deal that corresponds well with its underlying cover pool.

Deutsche Bank yesterday (Tuesday) priced its inaugural Pfandbrief, a Eu1bn seven year mortgage-backed benchmark, at 55bp over mid-swaps off the back of a book that was more than five times covered.

Deutsche Bank will today (Tuesday) price its debut Pfandbrief, a Eu1bn seven year mortgage-backed deal, at the tight of guidance. The level is easily the tightest this year for a mortgage-backed benchmark.

Deutsche Bank has closed books on its debut Pfandbrief issue and will price the seven year issue at 55bp over mid-swaps, the tight end of guidance, while BNP Paribas also looks set to hit a relatively tight level on its first public sector obligations foncières.

Deutsche Bank is expected to launch its debut Pfandbrief next week after the continental European public holiday on Monday and ahead of the expected release of details of the European Central Bank’s Eu60bn plan on Thursday. And it is not expected to be the only one.

The Dexia group took its benchmark covered bond funding since the start of last week to Eu2.5bn yesterday (Tuesday), when Dexia Kommunalbank priced a Eu1bn five year public sector Pfandbrief.

Dexia Kommunalbank is expected to price a Eu1bn five year public sector Pfandbrief this (Tuesday) afternoon, just a week after Dexia Municipal Agency sold a Eu1.5bn 12 year obligations foncières issue.

Deutsche Bank will be holding a roadshow next week ahead of its first Pfandbrief issue.

Coming to the jumbo covered bond market for the second time in three months, Eurohypo yesterday (Monday) priced this year’s largest benchmark, and the second with a seven year maturity.

Eurohypo is today (Monday) pulling off a “blow-out” deal, according to a syndicate official away from the leads.

The legal framework for Pfandbriefe backed by airplane loans is complete, after regulations setting out how the collateral value of airplanes is to be determined came into effect on Friday.

Despite being downgraded by Moody’s yesterday (Wednesday), Bayerische Landesbank welcomed a statement from the rating agency that it said showed the bank was “on the right track”.