As a classical mortgage bank Münchener Hypothekenbank is active in the public sector lending business as well as in mortgage lending. As a result it has claims on assets in public-sector cover pool and a mortgage cover pool.
The Bank employs a conservative approach in dealing with risk in terms of maturities and especially in the quality of the pools of coverage. The Bank’s portfolio of loans and pledged securities is refinanced to ensure congruent liquidity to the greatest extent possible. It is regularly monitored using mid-term and long-term scenarios for forward calculation purposes.
The quality of the pools of coverage is an important criterion and serves as the basis for the Aaa ratings, the best, MünchenerHyp has received for both of its pools of coverage.
The Bank uses a modern method to calculate the value of its cover pools and meets all the criteria of the applicable Pfandbrief regulations. The current composition of the Bank’s cover pools as well as additional information is contained in our investor presentation.