HypoVereinsbank Bank Hipoteczny, the Poland-based German bank, is attempting to jump-start the rather sluggish mortgage-backed market by coming to market with $243.2 million in mortgage-backed security (MBS) over the course of the next three years. Additionally, the bank issued a EURO3.6 million MBS bond with a maturity of 10 years into the private market before the year-end 2000.
Typically, Poland's seemingly high interest rates and legislative issues have stalled pension funds and insurance companies from participating in the MBS market. However, new legislation implemented last summer has cleared a path to enable insurers and pension funds to move into the publicly offered MBS market.
The German bank is owned by Poland's Przemyslowo-Handlowy (BPH), and HypoVereinsbank AG has an 86% stake.
