The survey describes the current and expected portfolio allocation broken down by bond type and currency among Danish investors at sector level. The survey covers 17 respondents and a total portfolio of DKK 462 billion, of which the total bond portfolio accounts for DKK 335 billion. The Danish bond portfolio totals DKK 204 billion.
According to John Madsen there is still a bearish sentiment among investors. A sentiment which is first and foremost believed to relate to expectations of yield rises in US bond markets. Investors are thus very convinced that the official rates in Euroland and consequently Denmark will remain unchanged in coming months. Despite expectations of yield rises, investors agree that the mortgage spread will remain unchanged.
Danish bond investors have increased their ownership share of government bonds in recent months from 25.0% to 30.5% through a reduction in mortgage bond positions of 7.6 percentage points. At the same time, Danish investors have increased the EUR-denominated share of bond portfolios significantly to a total of 23%. The trend is that large investors have a bond flow out of DKK, while small investors have a flow into DKK.
Read the entire article ‘Portfolio allocation among Danish investors’ in Focus no. 100 . Questions to the author may be sent to the e-mail address info@cse.dk not later than 20 March 2005.
