The Capital Markets department of NATIXIS Pfandbriefbank AG in Frankfurt am Main is responsible for all the Bank's capital market activities. These primarily include money market transactions, hedging transactions as well as the borrowing of short, medium, and long-term liquidity. In this regard, the issuing of Pfandbriefe must be mentioned.
The Capital Market department is in continual communication with all relevant departments of Natixis and Groupe BPCE as well as with third parties. The department, in cooperation with Natixis S.A., is also responsible for the regulation of its own bonds on the market and on the German Stock Exchanges in order to ensure that prices remain in line with the market.
In order to refinance its activities in the area of commercial real estate financing, NATIXIS Pfandbriefbank AG issues mortgage covered bonds. Due to the legal requirements of the German Pfandbrief Act (Pfandbriefgesetz), these bonds carry an especially high credit rating.
The Pfandbrief is a covered bond, i.e. it is covered by loans backed by an asset pool of dedicated mortgage loans. The high level of credit standing of these covered bonds is ensured by the fact that the loans in the pool may serve as cover of only 60% of the mortgage lending volume. The lending value of a real estate asset represents, in comparison to its market value, a prudently calculated value.
An additional legally required overcollateralization ensures that the coverage volume in the asset pool is higher than the opposing volume of the issued covered bonds.
Within the Pfandbrief segment, NATIXIS Pfandbriefbank AG is currently limited to the issuing of mortgage-backed securities.