Nykredit is the world's largest issuer of covered bonds backed by mortgages on real estate. Nykredit also issues other debt instruments, such as Additional Tier 1 (AT1) capital, Tier 1 capital, bail-inable senior debt etc. Read about issues, the Danish mortgage model, technical standards, structure of capital centres, historical prospectuses etc.
The Danish mortgage model
Structure of capital centres
The covered bonds are issued from a so-called capital centre (cover pool). The cover pool assets of Nykredit's capital centres mainly consist of loans secured by mortgage on (mainly Danish) real estate. They also include securities and other assets used, for instance, to meet the statutory capital requirement of 8%, the requirement of supplementary collateral etc.
Bond Data Technical Standards
Nykredit issues all of its covered bonds under the same base prospectus, while most other debt is issued under the EMTN-programme. However some older debt and capital instruments are issued under separate documentation. On this page you can find historical prospectuses for bonds issued by Nykredit Group.
Negative covered bond yields
Since May 2015 Nykredit has offered mortgage loans funded by variable-rate bonds the coupons of which may turn negative. Variable-rate bond coupons turned negative for the first time at the interest rate fixing on 1 July 2015. Nykredit has adjusted its procedures in relation to bonds to allow for negative interest. Read more about the models used to handle negative interest.