German building societies breathed life into a Pfandbrief market that had been muted since mid-September, quenching investors' thirst with €1bn worth of mortgage-backed notes and raking in orders. BAUSPARKASSE SCHWAEBISCH HALL received blowout demand for its first foray into the Pfandbrief sector, an aggressively priced €500m 10-year that offered no premium and was close to four times subscribed. "The final book size is outstanding for a such a small issuer and in the current market backdrop as well," said a banker away from Thursday's trade. "I think they really benefited from lack of supply, high redemptions and just having that exclusive window. Obviously investors are desperate to park their cash somewhere," the banker also said. The marketing process for the October 2030 mortgage-backed bond began in late September. "We got a lot of momentum from the beginning and decided to be aggressive in light of the nice IoIs we received," a lead manager said. "We started the process for this €500m no-grow 10-year at the mid-swaps plus 8bp area, the theoretical fair value being around plus 4bp," he said.
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