Covering all angles

Nordic banks are turning to the covered bond market following the freeze in the securitisation sector. Denmark, Norway and Sweden have all seen sizeable issuance, but can Nordic issuers join Europe's covered bond elite in the current market environment? Radi Khasawneh reports

Borrowers in the Nordic region have a long-established tradition of issuing local-currency denominated covered bonds. But with the cross-border securitisation market more or less frozen since the third quarter of 2007, Nordic banks have looked to expand their investor bases by launching jumbo euro offerings.

They have been helped by the passing of legislation in Denmark and Norway last year that established a legal framework for cross-border covered bond transactions (see box) - a development