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Mortgage bonds | Berlin Hyp

Investor Relations Mortgage bonds

Berlin Hyp issues mortgage Pfandbriefe on the basis of Section 1(1) sentence 1 Pfandbrief Act.

We grant the mortgage loans which are eligible for our cover pool on the basis of Sections 13–17 Pfandbrief Act.
Geographically, our new mortgage lending focuses on Germany and in particular on the conurbations in the old federal states.
We achieve further diversification of our cover pool through our business in selected European countries. In order to conduct this business, Berlin Hyp maintains international offices in Amsterdam, Paris and Warsaw.

Public Sector Pfandbriefe

In addition, Berlin Hyp issues Public Pfandbriefe on the basis of Section 1(1) sentence 2 Pfandbrief Act. The requirements with regard to the cover pool eligibility of public sector loans are defined in Section 20 Pfandbrief Act.

Substitute Cover

Further cover assets, also referred to as substitute cover assets, are mainly defined in Section 19(1) nos. 1 and 2 Pfandbrief Act (for the mortgage Pfandbrief) and in Section 20(2) no. 2 for the public Pfandbrief. They in particular encompass claims against suitable banking institutions, and in case of mortgage Pfandbriefe in addition claims against public entities.

Further statutory provisions concerning non-original cover assets are 

  • Section 4(1) Pfandbrief Act, which defines the composition of the statutory excess cover, and
  • Section 4(1a), which defines liquid cover assets intended to ensure the liquidity of the cover pool within the respective forthcoming 180 days.

Legislation ensures that Pfandbriefe are predominantly covered by original cover assets by limiting the proportion of further cover assets. Further cover assets represent an important liquidity management instrument for Pfandbrief banks.
Pursuant to Section 28 Pfandbrief Act, Berlin Hyp publishes the composition of its Pfandbrief cover pools on a quarterly basis. The current and past transparency reports can be found below.

If you are interested in the transparency reports of other Pfandbrief banks as well, you will find the cover pool figures of all vdp member institutes on the Internet page of the Association of German Pfandbrief banks here.