Danish lenders are responding to regulatory and rating agency pressures to reduce the share of adjustable rate mortgages (ARMs) with the launch of Cita-based loans and a revival of fixed rate callables, with Moody’s highlighting Nordea Kredit’s success in the latter as credit positive.
Nykredit Realkredit is planning a roadshow for a senior secured issue that will be its first euro benchmark where the proceeds are being used for covered bond overcollateralisation purposes rather than, as previously, for reasons of CRD compliance.
The Danish government announced a new package of bank regulations today (Thursday), including details on the capital requirements for systemically important financial institutions (SIFIs).
The European Banking Authority on Monday released technical standards that ensure banks can no longer imprudently generate capital by writing down liabilities due to changes in their own credit risk, but the regulator did so in a way that safeguards legitimate Danish practices.
Danske Bank sold Eu1bn (Dkr7.46bn) of Tier 2 notes on Tuesday, after last Wednesday having launched a tender offer for a Tier 2 instrument that had lost favourable equity treatment from Standard & Poor’s.
Danske Bank has launched a cash tender offer for a $1bn (Eu748m, Dkr5.58bn) Tier 2 instrument it issued a year ago that lost favourable equity treatment by Standard & Poor’s in July, with uncertainty over the tax treatment of new instruments preventing the issuer from offering an exchange.
DLR Kredit will align its sales to coincide with those of its peers when the next Danish auction season begins in November, with the issuer having attracted weaker interest when finishing off the latest round of sales this week, according to an official at DLR Kredit.
Nordea Kredit and Nykredit Realkredit wrapped up adjustable rate mortgage (ARM) bond auctions today (Thursday) and BRFkredit is set to finish its sales tomorrow, with an official at BRFkredit saying that “no hiccups whatsoever” have affected the autumn auctions so far.
There was a break in Nykredit Realkredit ARM bond auctions today (Thursday) as the issuer held standalone auctions of floating rate notes, with the ARM bond auctions said to be unfolding consistently since the first fixed rate bullet bonds were offered last week.
Jyske Bank has decided to drop Moody’s and continue with one rating, from Standard & Poor’s, the Danish bank announced yesterday (Wednesday), and an official at the bank said that Moody’s methodology and negative view on Denmark influenced its decision to stop working with the rating agency.