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23management report mercial property increased by 3 percent to about € 760 million and met our target. The financing business with commercial housing companies in- creased in comparison to the previous year by € 60 million to about € 320 million. Total new business recorded in the commercial property financ- ing area of business totalled about € 1.1 billion, which equals a gain of 8 percent. Capital Market Business The political and economic uncertainties resulted in strong de- mand for liquid bonds. Additional support was provided by the ECB’s monetary policy and low inflation, which led to notably tighter credit spreads for bonds issued by banks and sovereign states over the course of the year. In accordance with our business and risk strategy, investments will continue to be limited to liquid securities issued by very cred- itworthy issuers located in EU core countries, and will be primarily made to manage liquidity. The volume of lending commitments totalled € 0.9 billion compared to € 0.6 billion in the previous year. The total portfolio contracted due to maturing securities and sales by € 0.9 billion to € 9.4 billion. Refinancing Overall conditions were defined by the unchanged low level of interest rates and the ECB’s third Covered Bond Purchase Pro- gramme (CBPP), which began in September 2014. Spreads con- tracted due to the ECB’s purchases. As a result we were again able to obtain refinancing funds from the capital markets at very favourable conditions in 2014. Our refinancing requirements were, however, notably lower than in the previous year as only one larger volume Public Pfandbrief of more than € 500 million was scheduled to mature in December 2014. In a very favourable market environment we issued a 10-year Mortgage Pfandbrief with a volume of € 500 million in July. The issue had a premium of 7 basis points above the mid-swap rate and carried a coupon of 1.5 percent. A total of 42 orders from nine countries were received for the issue. Investors from Ger- many bought about 80 percent of the issue with the remaining buyers based in Austria, Switzerland, Scandinavian countries, Mortgage rates MünchenerHyp (ten year fixed rate) 9 8 7 6 5 4 3 2 1 0 10 11 Initialeffectiveannualrateinpercent Long-term average rate As of: 02.01.2015 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 19901992199419961998200020022004200620082010201220142016