Foreign Jumbo mortgage bonds, which rely heavily on the legal basis of the German Mortgage Bank Act, have been forcing their way into the international capital markets for the first time during the past few weeks. The market for spread products, into which yield-oriented investors can diversify their investments, is hence becoming increasingly diverse and competition for German Pfandbriefe is intensifying.
The market for corporate bonds has been growing strongly in Europe but not as strongly as predicted by optimistic forecasts. In the longer term, however, financing via bonds is likely to become a worthwhile alternative for enterprises. The market for corporate bonds might receive an additional boost from the persistent wave of mergers in Europe.