Pfandbriefe

“Pfandbriefe” are the German equivalent of MBSs, or mortgage-backed securities, here in the U.S. They’re made up of personal home mortgages, public mortgages, aircraft mortgages, and even ship mortgages, which is pretty neat. Not only is the word “pfandbriefe” a ton of fun to say, but these collateralized bonds make up the biggest piece of the German debt pie. (Know what else is fun? “Pfandbriefe” is plural and “pfandbrief” is singular.)

Anyway, other than government bonds, these pfandbriefe puppies are considered the safest bonds we can buy. In more than 200 years, the German pfandbrief has never defaulted. Never. Ever. Not even once. Not even in that other, you-know...era of Germany. That’s quite the track record, especially considering that our own version of pfandbriefe helped shove our economy off a cliff and right down into the swirling cesspool of the 2008 subprime mortgage crisis.

Well done, Deutschland, well done.