Erste Bank Research Team
Erste Bank
Mortgage issues continue to grow
In 1Q 2024, the total volume of cover pools of Austrian issuers amounted to EUR 163.5bn, of which EUR 26.1bn was attributable to public sector cover assets and EUR 137.4bn to mortgage cover pools. The increase of EUR 3.3bn or 2.0% compared to 3Q 23 was below the average of recent periods. The share of the mortgage segment was 84.0% in 1Q 24 (3Q 23: 83.9%).
The volume of outstanding covered bonds amounted to EUR 115.0bn in 1Q 24 and was divided between EUR 98.9bn in mortgage covered bonds and EUR 16.1bn in public sector covered bonds. At 2.1%, the overall growth of the outstanding covered bond volume was in line with that of the cover assets. The growth in total volume was attributable solely to the mortgage segment, while the public sector segment continued to decline.
Declining trend in commercial real estate
The mortgage cover assets of domestic issuers were divided into EUR 95.1bn from private housing and EUR 42.0bn from commercial housing in 1Q 24. While an increase of 4.6% was observed in private housing compared to 3Q 23, the share of commercial real estate (CRE) fell by 3.0%. This led to a percentage decline in the CRE share of the total value of cover pools from 32.2% to 30.6%. The largest decline compared to 3Q 23 was recorded by UniCredit Bank Austria with EUR 735mn (-18%) and Erste Bank Group with EUR 545mn (-4%) in their respective cover pools. RLB NOE-Wien increased its CRE share by 9% with an increase of EUR 368mn.
Share of commercial real estate fell to 30.6%
Mortgage cover pool, in bn EUR
Source: Issuer, Erste Group Research
This document is intended as an additional information source, aimed towards our customers. It is based on the best resources available to the authors at press time. The information and data sources utilised are deemed reliable, however, Erste Bank Sparkassen (CR) and affiliates do not take any responsibility for accuracy nor completeness of the information contained herein. This document is neither an offer nor an invitation to buy or sell any securities.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.1100, looks to post weekly losses
EUR/USD continues to trade in a narrow range below 1.1100 and remains on track to end the week in negative territory. Earlier in the day, monthly PCE inflation data from the US came in line with the market expectation, failing to trigger a reaction.
GBP/USD struggles to find a foothold, trades near 1.3150
GBP/USD stays on the back foot and trades in negative territory at around 1.3150 on Friday. The US Dollar holds its ground following the July PCE inflation data and doesn't allow the pair to stage a rebound heading into the weekend.
Gold retreats toward $2,500 ahead of the weekend
Gold stays under modest bearish pressure and declines toward $2,500 in the American session on Friday. The 10-year US Treasury bond yield edges higher toward 3.9% after US PCE inflation data, causing XAU/USD to stretch lower.
Week ahead – Investors brace for NFP amid Fed rate cut speculation
Here comes another NFP week, with investors eagerly awaiting the results as they try to discern the size and pace of the Fed’s forthcoming rate cuts. The weaker than expected July numbers triggered market turbulence, instilling fears about a potential recession in the US.
Easing Eurozone inflation to back an ECB rate cut in September Premium
Eurostat will publish the preliminary estimate of the August Eurozone Harmonized Index of Consumer Prices on Friday, and the anticipated outcome will back up the case for another European Central Bank interest rate cut when policymakers meet in September.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.