Never before have interest rates in the world’s biggest covered-bond market been this low. And rarely has investor demand for the debt been so high. Pacific Investment Management Co. is among investors embracing Danish mortgage-backed covered bonds, even as negative interest rates mean investors face built-in losses on some bonds.

Finance Minister Olaf Scholz says he’ll look into whether it’s possible to prevent German banks from charging most retail-banking clients for deposits, after such a measure was proposed by the leader of Bavaria. Lenders have rejected the idea, saying bans don’t ultimately help clients and could even destabilize financial markets.