DLR plans to bring forward sales after weaker end to auctions

Sep 5th, 2013

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.

DLR imageDLR Kredit sold Dkr16.075bn (Eu2.16bn) of short dated bullets, Dkr15.6bn of this in the one year maturity.

Pernille Lohmann, investor relations manager at DLR Kredit, said that liquidity had dried out by the time of its auctions, from Tuesday to today (Thursday). Its Danish peers completed their sales over the previous fortnight.

“There wasn’t that much interest but we were prepared for that,” said Lohmann. “Bid-to-covers were not very high, around two times, but the spreads were OK.”

The level of demand compares with bid-to-covers as high as 6.05 times for the first auction on 16 August, from Nykredit Realkredit.

“It’s not optimal coming when everyone else has finished,” said Lohmann. “Next time we will be aligning ourselves with the others.”

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