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DZ HYP publishes German Pfandbrief Market Report 2022/2023


Sustained high investor confidence – Pfandbrief law successfully reformed

The Pfandbrief once again proved its worth as a proven refinancing instrument in a difficult environment. Despite high volatility on the international equity and bond markets in 2022, the risk premiums of German pfandbriefe have increased only very little since the beginning of the year and have generally outperformed other international covered bank bonds.

The strict legal requirements for pfandbriefe are likely to be an important reason for investor confidence. On 8 July 2022, the amendments to the Pfandbrief Act already adopted in the previous year came into force, completing the transposition of the European Covered Bond Directive into German law.

One bright spot at the moment is the growth in the market for sustainable covered bonds (including Green and Social Pfandbriefe). In an international comparison, Germany has the most issuers of ESG covered bonds, and their number continues to grow. The issue of DZ HYP’s very first Green Pfandbrief in mid-February saw the bank join the ranks of green bond issuers.

Detailed information is available in the Pfandbrief Market Report 2022/2023, which can be downloaded below.