Senior Resolution Notes

In addition to covered bonds Nykredit issues senior debt in various formats, including Senior Resolution Notes (non-preferred senior), Tier 2 subordinated debt and Additional Tier 1 capital.

  • Nykredit is Europe’s largest issuer of covered bonds backed by mortgages. In addition to covered bonds Nykredit issues senior debt in various formats including contractual non-preferred senior debt which we call Senior Resolution Notes. Nykredit has also issued Tier 2 subordinated debt and Additional Tier 1 capital.
  • The Senior Resolution Notes structure was designed to facilitate full eligibility for the Danish debt buffer requirement which is the Danish equivalent of MREL for non deposit taking mortgage banks. Additionally issuance of SRNs provides further support of our ratings.
  • The contractual Senior Resolution Note is an instrument where write-down or conversion can only occur if all other obligations that rank junior to the Senior Resolution Notes have already fully absorbed losses. Nykredit’s SRNs were the first contractually senior subordinated instruments to be issued in connection with the implementation of BRRD – unlike other countries' solutions, having a statutory trigger.