Pfandbrief is a type of covered bond issued by German mortgage banks (Hypothekenbanken) and the German Federal States banks (Landesbanken).
All Pfandbriefe must be fully secured by cover assets: loans to the public sector as well as land, ship or aircraft mortgages. For each of these 4 asset classes, there is a specific class of covered bonds: Hypothekenpfandbriefe, Öffentliche Pfandbriefe, Schiffspfandbriefe and Flugzeugpfandbriefe.
The term Jumbo Pfandbriefe are used to refer to the larger, more liquid segment of the Pfandbriefe market and must have a minimum outstanding volume of EUR 1 billion.
This type of bond represents the largest segment of the German securities market and is considered the safest debt instrument on the market, usually rated AAA.