Pfandbrief market

27 October 2005 – In response to press reports concerning the situation on the Pfandbrief market, the Association of German Banks wishes to issue the following statement:

The Pfandbrief is an internationally recognised and safe financial product. Its quality is in no way affected by developments at Allgemeine HypothekenBank Rheinboden Aktiengesellschaft (AHBR) and short-term reactions on the Pfandbrief market. This is shown by the unchanged rating given to AHBR Pfandbriefe by the rating agencies. Prices are now being quoted again on the markets, particularly by the major market makers.