In Focus no. 39 chief analyst Jens Peter Sørensen, Danske Bank, poses the question whether investors will reinvest the funds in the Danish mortgage credit market or move into the European government and mortgage bond markets.
The author expects that much of the prepayments from the April repayment date will be reinvested in the Danish bond market, mainly in mortgage bonds, considering investor demands for a yield pick-up to European government bonds and mortgage bonds, rating differences between Danish and German mortgage bonds and the yield pick-up relative to money market placements. Given their desire for duration, Danish investors are also expected to be buyers of foreign bonds.
Read the entire article " Reinvestment behaviour in the Danish bond market" in Focus no. 39 and see the webcast presentation with Jens Peter Sørensen on our website www.cse.dk.
Questions to the author may be sent to the e-mail address: info@cse.dk until 17 February 2003.
