Has the Pfandbrief fulfilled its potential to make up the largest single segment of the euro bond market? Will the same level of activity be maintained without taking greater interest rate risk?
Participants:
Robert Hammond - head of European credit trading, WestLB
Tim Jennison - senior Pfandbrief trader, Morgan Stanley Dean Witter
Derek Brawn - credit strategist, Morgan Stanley Dean Witter
Frank Damerow - fixed-income analyst, HypoVereinsbank
Dieter Bellinger - general manager, Association of German Mortgage Banks
Paul Mussche and Erwin Mirkes - euroland relative-value analysts, Deutsche Bank
Bettina Klose - head of capital markets, DePfa
Richard Leib - head of treasury, Münchener Hypothekenbank
Robert Hammond, WestLB
The Pfandbrief market has come of age since the launch of the euro. Jumbo Pfandbriefe have delivered to a pan-European investor base the benefits of a high-quality, liquid, euro government bond alternative, coupled with the tailor-made attractions of the classic Pfandbrief product.
The broadening of the investor base for German Pfandbriefe has helped to bring about regulatory changes and new asset-backed products in France and Spain that in turn will strengthen the foundation of a pan-European Pfandbriefe market.