Swiss Financial System
Swiss Pfandbrief Act
The Swiss Pfandbrief Act provides the statutory framework for the country’s specialised mortgage-bond system, including issuer structure, cover requirements and creditor protection.
Definition
The Swiss Pfandbrief Act provides the statutory framework for the country’s specialised mortgage-bond system, including issuer structure, cover requirements and creditor protection.
Funding chain
Mortgage claims remain on bank balance sheets while refinancing can be raised through deposits, capital markets and the specialised Pfandbrief system. Legal cover, collateral valuation and maturity transformation determine how cheaply and reliably that funding can be obtained.
Market relevance
Swiss mortgage pricing is not simply a function of the SNB policy rate. Deposit costs, swap rates, Pfandbrief yields, bank capital, competition and the composition of fixed versus floating mortgages all influence transmission.
What to monitor
Compare mortgage rates with SARON, swap and Pfandbrief curves; watch issuance volumes, cover quality, bank funding spreads and refinancing needs rather than treating the mortgage market as a single-rate market.