Pfandbriefe in danger: German banks under pressure

Pfandbriefe in danger: German banks under pressure

The headlines surrounding real estate and Pfandbriefe have not been exactly positive recently. The rating agency Scope even asked rhetorically in its quarterly report on the European market for covered bonds: “Have German banks endangered the Pfandbrief?” The reason for the unrest were reports about poor prospects for commercial real estate loans, especially in the USA, and the resulting burdens, particularly for two Pfandbrief banks, namely Aareal and Pfandbriefbank. Despite these negative reports, banks expect the real estate market to stabilize in the foreseeable future. The banks are optimistic and assume that the current challenges can be overcome. Analysts are already seeing the first signs of a possible trend reversal and point to the robust structure of the German real estate market. It is expected that the situation will stabilize in the near future, which could also have a positive impact on the Pfandbrief market. Banks are therefore confident that the situation will improve in the near future.