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ePaper created 2014-04-15, 13:56:41 | version 1.30.00
Management report 23 Public-sector and bank lending, and municipal loans Overall conditions in the lending business with the public-sector and banks improved last year as the ECB managed to calm the markets with its OMT programme. Furthermore, European poli- cymakers increasingly implemented reforms. Spreads improved significantly for bonds issued by banks and governments over the entire course of the year. Despite these developments we continued to conduct our busi- ness cautiously in accordance with our business and risk strat- egy. Investments were only made in liquid securities issued by very creditworthy issuers located in the European core coun- tries. The volume of lending commitments declined from € 0.7 billion in 2012 to € 0.6 billion. Refinancing We were also affected by the overall conditions noted for refi- nancing activities, which were defined by an unchanged low level of interest rates and a high volume of maturing paper. Two of our large-volume Pfandbriefe matured last year: a € 1.5 bil- lion Jumbo Mortgage Pfandbrief in April and a € 1.35 billion Jumbo Public Pfandbrief in October. In a market environment that favoured our Bank, we replaced these large-volume issues by successfully launching planned volumes of benchmark issues. We were once able to refinance our activities through the capital markets at very good conditions. We issued four large-volume Pfandbriefe over the course of the year. These issues also devel- oped favourably in the secondary market. In addition, our pri- vate placements also recorded high sales. Our efforts in this difficult environment of low interest rates were also supported not least by our very good standing as an issuer. “MünchenerHyp won two renowned awards: ‘Best Global Issuer’ and ‘Best Euro Issuer’.” Due to strong demand for our private placements our first bench mark issue was only launched in April 2013. This was an 8-year Mortgage Pfandbrief with a nominal value of € 750 million. We Mortgage rates MünchenerHyp (ten year fixed rate) 9 8 7 6 5 4 3 2 10 11 Initialeffectiveannualrateinpercent Long-term average rate Source: MünchenerHypAs of: 02.01.2014 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014