Sweden’s Riksbank kept the repo rate unchanged at minus 0.35% yesterday (Thursday), although market participants still expect the central bank to engage in further monetary policy measures over the coming months.

Standard & Poor’s said on Tuesday that a Swedish Bankers’ Association proposal to suggest a reduction in the required level of amortisation to a 50% LTV ratio could help reduce asset-liability mismatch (ALMM) risk in covered bond programmes, but highlighted that issuers have already reduced this since 2008 by extending the duration of their funding.