It will take more than the Italian bank’s takeover of the less than attractive German institution to prompt a torrent of consolidation.

This year is the 10th anniversary of the jumbo pfandbrief. Famous for its security, its past is more chequered than you would imagine. Edward Russell-Walling talks to Dresdner Kleinwort Wasserstein, which has been a top three player since the market started.

Deutsche Bank’s successful euro issuance for Brazil helped the dollar market to rally, setting the stage for it to do subsequent dollar and euro deals for a diverse range of issuers. Sophie Roell reports.
The Greeks may have won Euro 2004 but the Germans are firmly in the lead when it comes to euro issuance out of Latin America.

Deutsche Bank and Saudi Arabia’s Al Azizia Commercial Investment Company (ACIC) signed a joint proposal, in mid-April, for the establishment of an investment banking joint venture.

Germany’s medium-sized companies’ political clout has led to banks coming up with innovative capital-raising solutions for them, says Brian Caplen.
Refusing to lend to the Mittelstand in Germany is the fastest route to bad publicity and political outcry. These small and medium-sized enterprises account for three quarters of output in Germany, higher than in most other western European economies where large firms dominate. What’s more, they have a large political voice.
The fact remains, however, that lending to the Mittelstand at low margins does not make economic sense for banks, even if it makes good politics.

A US fund is leading the way in dealing with Germany’s bad loan overload. Brian Caplen reports.
The great potential of German distressed debt may not be obvious to all but it is proving attractive to Lone Star, the US private equity fund that has purchased two-thirds of all the non-performing loans (NPLs) sold by German banks.
Yet with an estimated €300bn of bad loans in the German banking system and so far only €10bn sold, there is no danger of supplies evaporating.

Most commentators are not expecting radical change to result from either of the two key pieces of banking legislation due this year. The planned abolition in July of the state guarantees currently afforded to the Landesbanken – institutional liability (Änstaltslast) and guarantor liability (Gewährträgerhaftung) – is unlikely to bring about major restructuring.

A lot of the groundwork for a German revival is complete. The news remains bad but then the darkest hour is often just before the dawn. Brian Caplen reports.
While the headline news about Germany’s economy remains dire and political battles continue to be fought over reforms and job losses, behind the scenes Europe’s largest economy is showing signs of restoration to at least some of its former glory.

Deutsche Börse’s thwarted attempt to acquire the London Stock Exchange has shown that buying or selling an exchange is not a simple matter.

In 2004, Germany saw its first ‘true sale’ securitisation, the birth of a non-performing loan market and the founding of a new exchange, reports Jan Wagner.
Last year was another difficult one for German banks. Contrary to expectations, equity markets did not perform particularly well and neither did the economy. Despite this, German banks will probably regard 2004 as one of their better years as the financial industry matured greatly, thanks to several important innovations. As 2004 began, Germany’s hedge fund industry was born when the direct sale and domiciling of these products in the country was permitted for the first time.