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Updated 14 March 2024
Analyses focus on current issues of particular relevance to Danmarks Nationalbank’s objectives. The analyses may also contain Danmarks Nationalbank’s recommendations. They include our projections for the Danish economy and our assessment of financial stability. Analyses are targeted at people with a broad interest in economic and financial matters.
Mortgage credit institutions must ensure that they can always sell their bonds
In autumn 2022 there were large price fluctuations in Danish mortgage bonds. During the same period, some of the banks increased the share of bonds they bought from the mortgage credit institution within their own banking group. Mortgage credit institutions must ensure that they do not become dependent on selling to only one bank.
Key messages
Why is it important?
A well-functioning Danish mortgage bond market is important for the robustness of the financial system in Denmark. Danish mortgage bonds are issued daily for housing and property financing and thus play a central role in the Danish property market. Financial players, such as banks and pension funds, also use mortgage bonds to place liquidity and as part of their liquidity buffer. It is therefore important that the Danish mortgage bond market remains robust and well-functioning, even in times of financial turmoil.
Main chart
In a short period in autumn 2022, one bank bought more or less only bonds from the mortgage credit institution within their own banking group
Note:
The largest share is the averages for the five-day period in September and October 2022, where the banks bought the largest share of bonds from the mortgage credit institution within their own banking group.
Source:
MIFIR reports and own calculations.
The analysis has been updated with new figures 14 March 2024, since Nationalbanken has received further data and information from one institute. The changes have no impact on the points and conclusions in the analysis.
The analysis consists of a Danish and English version. In case of doubt as to the correctness of the translation, the Danish version will prevail.
Editing completed on 15 November 2023