From the Collaborative Bond and Money Market Data Portal
A Schuldschein is a bilateral loan under German documentation with, depending on actual wording, limited secondary transferability.
Because it has transferability it is included in the Debt Capital Markets.
Schuldscheine are often used as collateral in Pfandbrief or German covered bonds. Pfandbrief issuers are able to use Schuldschein loans with ECB operations, even before they physically receive it and add it to their cover pool. The traditional investors in Schuldschein are German state banks and savings banks, but that has been changing. The German law Schuldschein format with binding English language has enjoyed growing popularity with international issuers and investors. In particular, Asian investors have started to buy Schuldscheine. Under German Law Floating Rate Schuldschein are Bermudan Callable, whilst Fixed Rate Schuldscheine are Callable after 10 years. For this reason, the product on the longer end is often combined with a Namenschuldverschreibung or Registered Bond.
In the Collaborative Bond and Money Market Data Model the Schuldschein classification appears within the field Legal. Deals are split in tranches depending maturity. Where split in size is not specified, the total size is equally apportioned to the different maturity tranche. Like in bond markets, dealers are credited for each maturity tranche with split amounts. As a result dealers are not credited for more than the total size of the Schuldschein financing.
For information on the current size of the Schuldschein Market, please use the Data Sheet tool. Select Distribution equals "Schuldschein".
For information on issues in Schuldschein Market, please use the Instrument Search tool. Select Distribution equals "Schuldschein".
For information on the composition of the Schuldschein market, please use the Issuer Search tool. Select Distribution equals "Schuldschein".
For information on active dealers in the Schuldschein Market, please use the Dealer Search tool. Select Distribution equals "Schuldschein".
