Heta Fallout Reaches DuessHyp as Fitch Sees Capital Gap Looming
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Duesseldorfer Hypothekenbank AG, a German issuer of covered bonds known as Pfandbriefe, may need additional capital to survive losses caused by Austria’s Heta Asset Resolution AG.
DuessHyp, based in the western German city of Dusseldorf, is facing losses after Austrian regulator FMA imposed a debt moratorium on Heta’s senior bonds ahead of a bail-in expected next year, Berenberg Bank analysts led by Philipp Jaeger said in a note to clients Wednesday. Fitch Ratings said late Tuesday that the bank won’t be able to survive unless it receives support from Germany’s deposit insurance fund.