Pfandbrief Market Report 2026|2027 published

Today, DZ HYP released the latest edition of its Pfandbrief Market Report 2026|2027. The study provides a solid foundation for assessing current investor demand and the terms of new issuances. The report examines the development of the Pfandbrief market in an environment that has been shaped in recent years by ECB purchases, the harmonization of covered bonds, a shift in interest rates, rising inflation, and stress tests for the real estate markets.

Key finding: Despite high uncertainty and fluctuating interest rate expectations, the Pfandbrief maintains its strong position as a reliable refinancing instrument and remains on a growth trajectory. The outstanding volume reached approximately 420 billion euros as of June 30, 2026, which is 10.8 billion euros more than in mid-2025.

At the end of 2025, Germany was the third-largest country segment in the global covered bond market in terms of both outstanding volume and new issuance volume, and with 82 active issuers as of mid-2026, it had the most worldwide. Risk premiums remained largely stable despite the crises.

Demand for German Pfandbriefe remains strong and is driven primarily by domestic investors and banks. Mortgage Pfandbriefe continue to form the backbone of the market, with their share having stabilized at around three-quarters since 2023, supplemented by public Pfandbriefe.

The report also provides a separate overview of the market for sustainable Pfandbriefe and the implications of further amendments to the Pfandbrief Act.

The full report is available for download here: