Pfandbriefe can be broken down into various segments with respect to the outstanding issue volume and issue structure.
Jumbo Pfandbriefe must have a minimum volume of EUR 1 billion. Pfandbriefe achieve jumbo status if an outstanding volume of at least EUR 1 billion is reached, although there is no specific minimum limit volume at the time of the initial issue.
With Jumbo Pfandbriefe, the liquidity of the issues plays an important role, because the market segment of large-volume Pfandbriefe is geared to the liquidity requirements of trading-oriented investors. The minimum standards drawn up by the vdp ensure that Jumbo Pfandbriefe constitute a very standardized and thus highly liquid product.
Traditional Pfandbriefe are subject to the same security requirements as Jumbo Pfandbriefe. The strict provisions of the Pfandbrief Act apply to both Pfandbrief types.
Instead, what makes traditional Pfandbriefe different is how they are structured. In contrast to Jumbo Pfandbriefe, traditional Pfandbriefe may be issued not only in the form of bearer securities but also as registered Pfandbriefe. The latter differ from bearer Pfandbriefe in that they are issued specifically in accordance with an investor’s needs and in its name. In turn, this means that they are not fungible and can be transferred to other investors only with difficulty.
The structure of traditional Pfandbriefe is normally geared strongly to the interests of certain investors.