ECB interference threatens Pfandbrief market

The Pfandbrief market has been hit hard by the European Central Bank’s third covered bond purchase programme, which began in October 2014. Central banks have gone from taking around 14% of newly minted Pfandbriefe before CBBP3 to around 33% of such deals now, according to Thorsten Euler, a Pfandbrief analyst at DZ Bank.