Yield-Curve Inversion Hits World's Biggest Covered-Bond Market
- Recession fears may be driving market in Denmark, Nordea says
- Mortgage lenders are holding quarterly refinancing auctions
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For the first time since the financial crisis, yields at the very shortest end of Denmark’s $500 billion covered-bond market are higher than on longer-dated notes.
Mortgage banks holding quarterly refinancing auctions in Denmark are offering bonds with maturities of one to five years, and Nordea Bank Abp estimates that about 38 billion kroner ($5.7 billion) in bullet bonds will be refinanced. But investors are cooling to the shortest bonds, according to Lise Bergmann, chief analyst at the Danish mortgage unit of Nordea in Copenhagen.