A Danish government plan under which bonds refinancing Danish ARMs would automatically extend in certain stressed scenarios would greatly reduce associated refinancing risks, according to Fitch, but the rating agency on Wednesday also said that there are questions regarding details of its implementation.

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.

DNB today (Thursday) became the first European issuer to sell a US targeted benchmark covered bond this year, after SEB yesterday placed an inaugural, $1.25bn five year senior unsecured deal as dollars offered high quality Yankee names better terms than euros.

DNB Boligkreditt launched a Eu1.5bn five year deal on Tuesday, but the issuer expects reduced issuance in euros this year as it has lower funding needs and is working towards a return to the dollar market.

DNB raised Eu1bn of prefunding via an opportunistic 10 year euro benchmark covered bond yesterday (Wednesday) that it launched to capitalise on tight spreads and a positive market, according to an official at the issuer, who said that the bank’s deals will be smaller than in the past given declining wholesale funding needs.