Swap Spreads – quo vadis?

Pfandbrief spreads are still generally at rather moderate levels. In the next year, supply on the primary market will be somewhat lower than in the "record year" coming to an end. At the same time, the start of the ECB's planned balance sheet reduction will eliminate demand. In contrast, traditional investors are returning to the market. The uncertain market environment with inflation and interest rate risks as well as the geopolitical headlines make 2023 a challenging year, too.