DEFINITION of 'Pfandbriefe'

A type of bond issued by German mortgage banks that is collateralized by long-term assets used. These types of bonds represent the largest segment of the German private debt market and are considered to be the safest debt instruments in the private market.

BREAKING DOWN 'Pfandbriefe'

The Pfandbriefe class of debt is similar to mortgage-backed securities in the United States. The term Jumbo Pfandbriefe is used to refer to the larger, more liquid segment of the Pfandbriefe market and with face values of around 500 million euros (about $650 million).

  1. Liquidity

    The degree to which an asset or security can be quickly bought ...
  2. Bond

    A debt investment in which an investor loans money to an entity ...
  3. Debt

    An amount of money borrowed by one party from another. Many corporations/individuals ...
  4. Bund

    A bond issued by Germany's federal government, or the German ...
  5. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
  6. U.S. Savings Bonds

    A U.S. government savings bond that offers a fixed rate of interest ...
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