Nordea and SEB opened the latest earnings season this week with results that were resilient against the headwinds from autumn interest rate cuts and bode well for their peers, although the dividend and capital policies of the two Swedish banks contrasted.

SEB priced a $1.5bn (Eu1.09, Skr9.63bn) five year senior unsecured issue on Tuesday, with an official at the issuer noting a very strong response in terms of the volume and quality of demand.

SEB added another string to its bow by making its US dollar covered bond debut on Tuesday, pricing a $1.5bn five year deal on the back of strong demand and only 1bp wide of where Stadshypotek tapped the market last week.

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.

Ten Nordic banks had their outlooks revised from stable to negative by Standard & Poor’s on Monday because of increasing economic risks arising from a longer than expected recession in the euro-zone.