But then, overnight, the start of European monetary union brought about major structural changes which forced all the market participants to undergo the appropriate processes of adjustment. This applies also, and especially, to the market for Pfandbriefe. The German Pfandbrief goes back more than 200 years. However, only during the past few years have the international capital markets discovered it.
As I have said several times in the past, for the long-term health of the industry it is important to generate greater scale and diversity. Diversification of the industry needs to occur over several different dimensions. In the first place, diversification is needed of the industry’s exposure to particular economic and industry sectors, such as real estate.