The Pfandbrief

Mortgage Pfandbrief. Security by Law

The Pfandbrief is a covered bond. As a Pfandbriefbank, WL BANK issues mortgage Pfandbriefe to refinance its business. A special feature of these Pfandbriefe is their high security, which is guaranteed by the legal provisions of the German Pfandbrief Act.

Our current investment deals are available on Reuters under the access code "WL BANK 01", 02 or 03.

Mortgage Pfandbrief. Cover Pool Provides Security

WL BANK’s mortgage Pfandbriefe have been awarded the top AAA rating. The Pfandbriefe are covered by loans in a cover pool. This cover pool contains loans collateralised by liens on real property for the financing of residential and commercial real estate. The cover pool guarantees the high security of the mortgage Pfandbriefe, because the loans collateralised by liens on real property may be included in the cover pool only up to the mortgage lending limit of 60% of the mortgage lending value. The mortgage lending value of a property is determined more conservatively than the market value. 

Graphics Mortgage lending value

An additional surplus cover ensures that the cover volume in the cover pool is always larger than the Pfandbrief volume. 

The Separation Principle

The separation principle of mortgage Pfandbriefe provides additional security. In the event of a Pfandbrief bank’s insolvency, the cover assets in the cover pool are mainly used to satisfy the Pfandbrief creditors. The cover assets do not participate in the insolvency proceedings in respect of the bank’s assets.

Structure of WL BANK’s Mortgage Pfandbriefe

 Graphics Mortgage Pfandbriefe


Public sector Pfandbrief

The Pfandbrief is a covered bond. As a Pfandbriefbank, WL BANK also issues Public sector Pfandbriefe to refinance its business. WL BANK’s Public sector Pfandbriefe have held a top AAA rating from Standard & Poor's for years. 

Our current investment deals are available on Reuters under the access code "WL BANK 01", 02 or 03.

Cover Pool and German Pfandbrief Act. High Security

These Public sector Pfandbriefe are covered by loans in a cover pool, consisting of government loans and mainly German municipal loans. They are included in the cover pool at 100%. 

An additional surplus cover ensures that the cover volume in the cover pool is always larger than the Pfandbrief volume. Public sector Pfandbriefe are very secure thanks to the cover pool and the provisions of the German Pfandbrief Act.

Structure of WL BANK’s Public sector Pfandbriefe
Graphics Public Sector Pfandbriefe


The Separation Principle

The separation principles of Public sector Pfandbriefe provides additional security. In the event of a Pfandbrief bank’s insolvency, the cover assets in the cover pool are mainly used to satisfy the Pfandbrief creditors. The cover assets do not participate in the insolvency proceedings in respect of the bank’s assets.