Germany

In brief: Having completed its roadshow, Germany’s NordLB has decided to the time is nearly right to re-enter the primary market, mandating Barclays Capital, Citi, Dresdner Kleinwort, NordLB and UBS to lead manage the sale of a five year public sector euro benchmark Pfandbrief.

Eurohypo sold the first 10 year mortgage backed jumbo Pfandbrief yesterday (Tuesday) afternoon since before the crisis took hold last summer, a Eu1bn transaction priced at the tight end of guidance. A Eurohypo official said that the deal’s success vindicated the issuer’s decision to launch the transaction, which replaced its originally planned shorter dated public sector backed issue.

Eurohypo adopted a change of tactics with its latest covered bond this (Tuesday) morning. Having initially awarded a mandate for a five year public sector deal, the issuer has switched to a mortgage backed jumbo and pushed the maturity out beyond its original plans.

Following the recent news that Landesbank Baden-Württemberg is planning to expand its presence in the Pfandbrief market to include mortgage backed issuance, The Cover spoke to the bank about its issuance plans and cover pool.

After its second jumbo Pfandbrief yesterday (Wednesday), The Cover spoke to Deutsche Postbank about what the deal says about the issuer’s standing with investors, and about the bank’s plans for the remainder of the year.

Deutsche Postbank priced a Eu1bn seven year mortgage backed deal this morning at the bottom end of size expectations. But while the pricing might not have excited investors, it provided some relief to other Pfandbrief issuers in the pipeline.

The book for a new seven year Pfandbrief from Deutsche Postbank is approaching the minimum Eu1bn size of the deal, with further accounts mulling pricing that pitches the mortgage backed deal close to public sector covered bonds.

Landesbank Baden-Württemberg (LBBW) is to begin issuing mortgage backed Pfandbrief alongside its strong presence as a public sector issuer.

Dexia Kommunalbank’s decision to test the long end of the market proved correct when it was able to price the first 10 year jumbo Pfandbrief in over a year yesterday (Thursday). The Cover spoke to the issuer about its bold move.

Dexia Kommunalbank breathed life into the long end of the covered bond market today (Thursday), pricing the first 10 year jumbo Pfandbrief in over a year. The deal suggests that, even as other jurisdictions appear to be reaching saturation point, the German market continues to benefit from its strong domestic bid.

Dexia Kommunalbank is this (Wednesday) afternoon expected to launch the first 10 year covered bond since Caisse de Refinancement de l’Habitat at end of February, having mandated Deutsche Bank, Dresdner Kleinwort, DZ Bank and Landesbank Baden-Württemberg for the new issue.

SEB priced its Eu1bn five year public sector Pfandbrief yesterday (Wednesday) afternoon ahead of today’s continental European holidays. The deal maintained the Pfandbrief market’s “business as usual” attitude after the rescue of Düsseldorfer Hypothekenbank, although the issuer did move away from the retention system used in its last jumbo.