Billions are needed for investments in electromobility, in the sustainability of production processes, in more environmentally friendly heating systems and much more. Banks cannot handle these financing needs on their own, cannot bear the complete risk, or would require an unrealistic amount of additional equity in addition to significant liquidity. In our project report (Forschungsgutachten), we show how covered bonds, e.g. the Pfandbrief, and securitization can help to actively manage liquidity, credit risk, and equity in this situation.

The use of securitization to finance the challenges of our time is economically attractive, and the regulations needed to limit the risks to investors should therefore be developed and implemented prudently.

Our study was funded by the Stiftungsprojekts Kapitalmarktunion, with the True Sale International as the business agent for the three foundations.

Photo by Waldemar Brandt on Unsplash