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DZ HYP publishes German Pfandbrief Market Report 2023/2024


The market for Pfandbriefe grew in a difficult economic environment in the first half of 2023. This is likely due to the continued high level of confidence in the Pfandbrief as a long-term refinancing instrument. Legal foundations such as the strict rules on the mortgage lending value and maximum loan-to-value ratios of 60 percent contribute significantly to this trust and create the basis for a stable development of risk premiums.

The European Central Bank's exit from its covered bond purchases appears to have been successful in protecting the market. The lack of demand is being adequately compensated for by private investors. Nevertheless, the yield curve for German Pfandbriefe is inverted in the first half of 2023. The generally high volatility of yields and the comparatively low Pfandbrief yields are making it difficult for German issuers to issue Pfandbriefe with long maturities in the current year.

Detailed information on the situation on the Pfandbrief market, developments in sustainable covered bonds and the legal framework can be found in the market report in the download area.