Spread development in the Pfandbrief market
Pfandbrief spreads widened after the onset of the COVID-19 pandemic in Europe in March this year. However, they have narrowed appreciably in recent weeks.
In view of TLTRO III, CBPPIII and PELTRO, what spread development do you expect on the Pfandbrief market up to the end of the year? The swap spreads of Pfandbriefe will:
tend to move sideways at the current level
will narrow more than 10bp from their current levels
not maintain current levels and widen more than 10bp