Transparency
A variety of interest groups stand to benefit not only from extensive transparency information but also from the uniform preparation and presentation of data. The vdp and its member institutions have launched a number of transparency initiatives designed to continually enhance the way data are provided. They therefore afford interested professionals a level of transparency that far exceeds the extent required by law.
Under the Statistics menue item, we have compiled for you the specific data for the various transparency initiatives described below. In addition to displaying the current secondary market spreads, it also provides access to individual reports by vdp member institutions and savings banks containing the transparency information required by § 28 of the German Pfandbrief Act (Pfandbriefgesetz, PfandBG) and the extended transparency reports published on a voluntary basis.
vdp-Transparency-Initiatives
§ 28 of the German Pfandbrief Act (Pfandbriefgesetz, PfandBG) requires Pfandbrief banks to provide detailed information about the composition of their cover pools for Mortgage, Public, Ship, and Aircraft Pfandbriefe. This includes information such as the regional distribution of cover assets, the nature of the asset lent against, and the parties owing sovereign liabilities. Since 2009, vdp Pfandbrief banks have been publishing this information quarterly in a standardised format on the vdp website. Based on a collaboration between the vdp and the German Savings Banks Association (DSGV) that started in 2016, transparency reports by savings banks are made available by the DSGV's Pfandbrief office, likewise in the vdp format.
Improving the transparency of the Pfandbrief product has always been of major importance to the vdp and its members. On the European level, they have also worked with the European Covered Bond Council (ECBC) to develop templates that enable transparency data to be provided to the European covered bond market in a manner that is uniform for all countries. This work culminated in what is known as the Harmonised Transparency Template (HTT). German Pfandbrief banks supported the creation of the HTT from the outset and have incorporated developments on the European level into the vdp’s own template. Most of the vdp’s member institutions now publish transparency information in the HTT format, as well as by using expanded vdp templates.
The vdp makes available indicative, non-tradeable secondary market spreads for Jumbo Pfandbriefe and for issues with a volume of at least EUR 500 million every trading day. It uses a graphic point cloud to clearly depict the Pfandbriefe of individual issuers that have a residual maturity of at least 12 months. The data used to determine the average spreads are provided by 14 banks that have a significant involvement in the Pfandbrief transactions of the issuers. In connection with the minimum standards for Jumbo Pfandbriefe, the syndicate banks have undertaken to report spread data (spread vs. asset swap) on a daily basis.
The vdp Secondary Market Transparency Initiative is subject to a quality assurance process that is continuously tracked by the vdp head office and a quality assurance body.