Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Obviously buying covered bonds but not sovereign bonds in the secondary market isn't a policy mix deliberately discriminating against some members and in favor of others.
It's getting to the point where we should update your old dictum about bid-offer spreads to

"under German ideology public debt is toxic unless it's been sanitised by being repackaged by a Pfandbriefbank"

German rescue fund takes over Duesselhyp bank after Heta problems (Reuters, March 15, 2015)

The article, by the way, manages to avoid mentioning that preserving the sacrosanct risk-freeness of Pfandbriefe is the overarching policy objective here.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Migeru (migeru at eurotrib dot com) on Sun Mar 15th, 2015 at 06:46:38 PM EST
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