DLR Kredit wrapped up the 2012 year-end refinancing auction season for Denmark’s mortgage banks on Monday after Nykredit finished its sales last Thursday, with the issuers reporting that the auctions resulted in record low rates for borrowers.

DLR Kredit on Wednesday for the first time issued senior secured debt pursuant to Section 33e of Danish covered bond legislation, selling Dkr4bn (Eu536m) of what are also known as Junior Covered Bonds.

Adjustable rate mortgage bonds offered by Danish mortgage credit institutions met with strong demand over the first four days of end-of-year auctions, with bid-to-cover ratios higher than recent years and spreads some 10bp tighter than market levels before the auctions.

Nykredit Realkredit sold Skr5bn (Dkr4.39bn) of SDOs last week in a move designed to bring the Danish issuer’s Swedish krona bond sales closer to the model used by Sweden’s domestic covered bond issuers.

The Covered Bond Report’s Susanna Rust spoke to Henrik Andersen, head of treasury and financial institutions at Nykredit Bank, about its funding strategy.

Nykredit Realkredit wrapped up two weeks of auctions today (Thursday), hitting historically low yields to pass on attractive rates to borrowers, an official at the mortgage credit institution told The Covered Bond Report, and for the first time it achieved an equal distribution of volumes across three auction periods in a year.

Nykredit Realkredit is a week into its auctions and had by this (Thursday) morning allotted nearly 60% of the Danish krone bonds on offer and around 86% of a small supply of euro floaters.

Nykredit found stronger than expected demand for three year bonds on the first day of the Danish auction season on Wednesday.

Nykredit will kick off the latest Danish auction season on Wednesday when it opens Dkr105bn (Eu14.1bn) of sales after bringing forward the start of its refinancings of adjustable rate mortgages (ARMs) ahead of the implementation of Basel III.