The funding at LBBW aims at keeping a well diversified funding base as well as serving investor demand for our funding products.

Since the loss of the guarantees in July 2005, the funding volume has decreased due to larger long-dated funding in the first half of 2005 in response to strong investor demand. Our funding will become less liability-driven and therefore more closely linked to asset changes.

Long-term funding is typically generated through the Bank’s Medium-Term Note Program and through the issuance of Pfandbriefe (covered bonds). Issuance is done both strategically and opportunistically, and taps both domestic and international investors.

The medium-term notes (MTNs) can be issued out of Stuttgart, London, Singapore or New York. While most of the issuance occurs in Euros, U.S. Dollars and Swiss Francs, the notes can also be issued in a variety of other currencies. We are also open to a wide variety of structures on a reverse-inquiry basis.

In an effort to provide investors with a relatively liquid, unsecured credit curve, LBBW will continue issuing public deals in correspondence with funding demand. In terms of the collateralised bond market, the Bank actively issues traditional Pfandbriefe on regular basis and Jumbo-Pfandbriefe on a selective and strategic basis. Domestic German issuance is also done in senior unsecured bonds, senior unsecured assignable loans and senior secured assignable loans.