The current pandemic has had a profound direct and indirect effect on the EUR capital markets:
Our podcast with ICMA therefore focused on analyzing the reasons and potential consequences of these developments for the covered bond in general and the Pfandbrief in particular.
by Helaba experts Thomas Cohrs, FIG and SSA Origination, Syndicate & Sales and Sabrina Miehs, Covered Bond Analyst and others
Government induced issuance of and investment in securities has largely displaced covered bond issuance in regular markets at a time when the instrument had been on a decade long winning streak as funding and investment instrument of choice for banks and other financial institutions across Europe, parts of North America and even the Asian-Pacific region. Like many of our peers in Germany and abroad, Helaba has recently preferred direct ECB funding over capital markets issuance given the tremendous cost advantages this has entailed.
This cost consciousness notwithstanding, Helaba greatly believes in the Pfandbrief’s and other covered bonds’ bright future and continues to build its relevant franchise accordingly. While deeply rooted in the German savings bank sector, Helaba remains a major issuer of and investor in EUR covered bonds and aims to be one of the top providers of underwriting, distribution and trading services in this asset class.
„Helaba greatly believes in the Pfandbrief’s and other covered bonds’ bright future and continues to build its relevant franchise. We remain a major issuer of and investor in EUR covered bonds."