The Pfandbrief, a fixture of German finance, turns 250

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Bonds worth more than €50bn ($59bn) were issued last year

These days 82 German banks issue, up from 40-odd in 2005, when the market was loosened. Last year €50.4bn-worth of bonds were issued, according to the Association of German Pfandbrief Banks , up a bit from 2017. Of these, €43.2bn were backed by mortgages, a 17% jump. Public-sector bonds made up the rest, but these have dwindled in recent years. In the first half of 2019, €34.9bn ofwere sold. Over €365bn-worth are outstanding, €237bn mortgage-backed.

Several other countries, chiefly in Europe but also in Asia, have their own covered bonds. Unlike most American mortgages, the underlying loans stay on issuing banks’ balance-sheets. That, plus strict collateralisation rules and safeguards for bondholders if banks go bust, makes covered bonds safer bets than American mortgage-backed securities, according to the bonds’ boosters.

 

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Well that's interesting to know.

That doesn't say much...

PolemicTMM any relation of yours PP?

Schnell

But were any of them named James?

He’d own some $BTC for sure

Germany must be right.

At what rate

„The Pfandbrief“, I am very pleased, dear . Now, please also write something about the Kommunalobligation. 😉

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 /  🏆 6. in JP

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