By the end of December 2017 the outstanding Swiss Pfandbriefe® of Pfandbriefbank amounted to CHF 67.3 billion and of Pfandbriefzentrale to CHF 52.1 billion, respectively, hence in total CHF 119.4 billion. Swiss Pfandbriefe® constitute the biggest and most liquid segment of the Swiss inland bond market.
The notion to create securities for the financing of mortgage loans dates back to the 18th century. In the course of time the first Pfandbriefe, made out to a designated owner, hence personal Pfandbriefe, were replaced by non-personal ones, which constituted the foundation for an easier fungibility and liquidity. In Switzerland the demand for secure investment instruments increased with the emergence of pension schemes and insurance companies.