Berlin Hyp launched the first euro benchmark in over five weeks today (Tuesday), a €500m no-grow five year mortgage Pfandbrief that attracted over €2.1bn of orders, with bankers pointing to the book as evidence of investor interest in such supply, and pbb is also set for a €500m five year tomorrow.

Berlin Hyp’s deal is the first euro benchmark since a €750m DZ Hyp long nine year and a €1bn Crédit Mutuel seven year hit the market on 8 July.

After a mandate announcement yesterday (Monday), leads Commerzbank, DekaBank, HSBC, UBS and UniCredit opened books this morning with initial guidance of the mid-swaps plus 2bp area for the €500m no-grow August 2026 issue, with an expected Aaa rating. After around 45 minutes, the leads reported books above €1bn, excluding joint lead manager interest, and after around an hour and five minutes, the spread was fixed at minus 2bp on the back of books over €2bn, excluding JLM interest. The final book at re-offer was more than €2.1bn, including €60m JLM interest.

Syndicate bankers away from the leads put the new issue premium at just around 1bp – according to pre-announcement comparables circulated by the leads yesterday, Berlin Hyp green October 2025s were trading at minus 4.2bp, mid, its February 2026s at minus 3.5bp, and its February 2027s at minus 3.1bp.

“It was four times oversubscribed, and just looking at the numbers, it went very, very well,” said one.

The deal’s success was partly attributed to the five year maturity, even if this was accompanied by a yield of minus 0.4%.

“Maybe one or two issuers could take this trade as a role model and also approach the market in the five year maturity, as we’ve only seen something like seven transactions so far this year in that maturity,” added the syndicate banker. “It might be a good opportunity to use this spot of the curve, despite the very low rate environment.”

Indeed, a mandate for a €500m no-grow five year Deutsche Pfandbriefbank (pbb) mortgage Pfandbrief subsequently emerged this afternoon, with launch expected tomorrow via BayernLB, Commerzbank, Erste, Helaba and UBS.

Another syndicate banker away from the leads noted that Berlin Hyp’s five year followed a successful €1.5bn deal in the same maturity for CFF in the one of the last pre-summer benchmarks, on 5 July.

“It’s a great part of the curve to be active in,” he added. “I would assume that bank treasuries are all over it, as well as central banks and official institutions.”

He noted that the €500m no-grow size will have afforded Berlin Hyp pricing power and suggested that even tighter pricing may have been on the table, even if the minus 2bp re-offer was a wise choice.

“It was a really good trade from one of the tighter issuers in the market,” he said. “We’ve seen a good summer across various markets, and this new issue confirms that the technical backdrop is very good and not just based on where traders are marking prices, and that investors are cash rich.”

Pbb’s five year will be its first euro benchmark since January 2020, when it sold a €750m eight year. According to pre-announcement comparables circulated by the leads, its October 2025s were quoted at minus 0.7bp, mid, and its August 2027s at minus 0.9bp.