The Pfandbrief - Investors´ Attitudes and Expectations

Karsten Rühlmann, LBBW

Investors again found themselves faced with a number of challenges on the covered bond market over the past months. A major influencing factor in this connection remains the central bank policy of the European Central Bank. On the one hand, the ECB is keeping interest rates low; on the other, it continues to buy covered bonds and Pfandbriefe directly on the market under its third Covered Bond Purchase Program (CBPP3). This is having avariety of effects. A crowding out of individual investor groups is evident.