Copenhagen Stock Exchange: Increased Borrowing Generates Activity On The Mortgage Credit Market

In March, bond trading totalled DKK 641 billion, a rise of 42 per cent on February. The most significant reason for the rise is increased activity on the mortgage credit market, where the turnover grew by 57 per cent to DKK 373 billion.

The pickup in the turnover on the mortgage credit market was due to the fact that the borrowers showed a keener interest in raising new loans. Mortgage credit issues accounted for 60 per cent of the nominal inflow in March, which totalled some DKK 65 billion. In March, the total value of the bonds in circulation was just under DKK 2,356 billion in nominal terms, distributed with DKK 1,614 billion on mortgage credit bonds and DKK 783 billion on government bonds.

However, over the first three months of the year, the total bond turnover has decreased by 14 per cent, which may generally be ascribed to lower turnover in January 2004 compared with January 2003, when especially the turnover on the mortgage credit market was considerably higher.

Bond market key figures

	Mar-04	Feb-04	Change Feb. 04 to Mar. 04	Change Mar. 03 to Mar. 04	Year to date 2004	Year to date 2003	Change 2003 to 2004
Turnover, market value in DKKbn
Government bonds	221,803	182,737	21%	19%	642,368	610,533	5%
International organisations	39	99	-60%	-78%	525	657	-20%
Mortgage bonds	418,822	267,160	57%	7%	1,038,912	1,343,457	-23%
Asset Backed Securities	179	329	-46%	139%	621	168	271%
Corporate bonds	798	883	-10%	-58%	2,636	5,796	-55%
Total	641,640	451,209	42%	11%	1,685,063	1,960,610	-14%
Turnover, nominal value in DKKbn
Government bonds	212,654	175,622	21%	22%	616,107	573,566	7%
International organisations	39	98	-60%	-78%	518	649	-20%
Mortgage bonds	413,402	264,166	56%	6%	1,029,013	1,341,512	-23%
Asset Backed Securities	188	314	-40%	85%	627	233	169%
Corporate bonds	795	864	-8%	-58%	2,707	5,774	-53%
Total	627,078	441,063	42%	11%	1,648,972	1,921,735	-14%
No. of trades
Government bonds	8,382	6,839	23%	-13%	23,187	27,537	-16%
International organisations	32	24	33%	-81%	98	574	-83%
Mortgage bonds	89,100	64,466	38%	-17%	240,552	361,711	-33%
Asset Backed Securities	319	300	6%	88%	992	700	42%
Corporate bonds	1,778	1,401	27%	-48%	4,932	9,803	-50%
Total	99,611	73,030	36%	-18%	269,761	400,325	-33%
Yield to maturity, before taxes, benchmark bonds
5% Danske Stat St. lån 2013	4.10	4.22
5% Realkredit 2035	5.20	5.23

    

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