Germany

Eurohypo is expected to price a jumbo five year mortgage Pfandbrief later today (Tuesday), after having had to negotiate a tricky price discovery process.

Eurohypo is soft-sounding a potential five year mortgage Pfandbrief today (Monday), with books expected to be opened either later today or tomorrow morning. Any deal would be the first jumbo covered bond since early February.

Bankers are hopeful that the jumbo covered bond market could be reopened next week, saying that several issuers are potential candidates, but that one in particular is most likely to test the market.

In brief: Deutsche Bank is laying the groundwork for Pfandbrief issuance backed by mortgages.

Moody’s downgraded Deutsche Postbank from Aa2 to Aa3 yesterday (Wednesday) and kept the bank on review for further downgrade.

IKB Deutsche Industriebank issued a Eu2bn three year government-guaranteed bond at 45bp over mid-swaps today (Thursday). The pricing took into account IKB's troubles and the anomalies of the secondary market.

The pace of government-guaranteed issuance picked up today (Wednesday), with an Austrian, a UK and possibly a German name joining in. Banks are said to be keen to complete deals ahead of the European Central Bank meeting tomorrow (Thursday).

Dexia is understood to be committed to maintaining its Pfandbrief issuance through Dexia Kommunalbank despite the retrenchment into core markets that the group is planning as a result of its problems.

Jörg Huber will shortly be changing his role at Landesbank Baden-Württemberg to head up the bank’s funding and investor relations department, and giving up his position as head of debt capital markets, The Cover understands.

The demise of public sector-backed Pfandbrief issuance was highlighted by the Association of German Pfandbrief Banks’ panel at the Euromoney Bond Investors Congress in London yesterday (Tuesday).

Moody’s on Friday downgraded HSH Nordbank’s rating from Aa3 to A1, and placed the rating on negative outlook.

Deutsche Postbank’s long term issuer default rating was downgraded by Fitch yesterday (Thursday) from A to A-, with a stable outlook, after the bank announced a preliminary loss of Eu821m for 2008.