The Swedish FSA suggested increasing the risk weight floor for mortgages from 15% to 25% upon releasing its latest report on risks in the financial system today (Thursday), citing a very high level of household debt in Swedish households.

Demand for a Eu1bn long six year SpareBank 1 covered bond fell short of expectations on Tuesday, and an official at the issuer said the outcome was surprising, with the choice of maturity and amount of recent Nordic supply perhaps explaining the subdued reception.

The Danish government yesterday (Wednesday) moved decisively to address concerns about refinancing risks in its mortgage system by announcing that from 1 January many covered bonds, including those related to ARMs, will face forced extension in certain stressed scenarios.

The new Norwegian government followed up on a pre-election pledge to ease mortgage standards by asking the country’s FSA to examine lending practices on Tuesday of last week (29 October), and Moody’s said on Monday that any loosening would be credit negative for Norwegian banks and covered bonds.

DNB Boligkreditt priced its second tightest five year covered bond on Tuesday, a Eu1.5bn deal that came at 7bp over and gave the issuer a Eu500m headstart on its wholesale funding needs for next year.