This is an archived release.
Covered bonds still increase sharply
Norwegian mortgage companies are still increasing their covered bond debt rapidly. From the end of last year to June this year the debt rose by NOK 52.6 billion or 11.7 per cent. Banks’ holdings of covered bonds also increased sharply in the same period.
Norwegian banks’ stocks of covered bonds increased by NOK 63 billion or 31.8 per cent from the end of 2009 to June 2010. In the last 12 months the banks’ holdings of covered bonds rose by NOK 114 billion; 77.7 per cent. The “swap agreement” between the Norwegian government and the banks in 2008 contributed to the sharp increase in covered bond debt in 2009.
Sharp increase in Norwegian mortgage companies’ emissions of covered bonds
Norwegian mortgage companies’ covered bond debt was NOK 501 billion at end-June 2010. The covered bond debt increased by 11.7 per cent since the end of last year. The monthly growth in bond debt has varied considerably from early 2009. The monthly growth fell from March to May this year and rose to 1.2 per cent in June.
Norwegian banks increase holdings of covered bonds
Norwegian banks increased their holdings of covered bonds despite the end of new swap agreements between the government and the banks on covered bonds versus treasury bills at the end of 2009. At end-June 2010, banks’ holdings of covered bonds amounted to NOK 260 billion. Compared to the balance sheet total, the share of covered bonds has stabilised; the share rose from 5.3 per cent in December last year to 6.8 per cent in June this year.
|Mortgage companies' covered bond debt||Monthly growth.
|Banks' stock of covered bonds||Monthly growth.
|Dec. 2008||195 014||-||46 165||-|
|Jan. 2009||228 943||17.4||77 076||67.0|
|Feb. 2009||242 208||5.8||89 379||16.0|
|Mar. 2009||264 239||9.1||117 506||31.5|
|Apr. 2009||265 204||0.4||117 537||0.0|
|May 2009||331 869||25.1||121 207||3.1|
|Jun. 2009||371 305||11.9||146 427||20.8|
|Jul. 2009||389 366||4.9||165 585||13.1|
|Aug. 2009||412 485||5.9||181 491||9.6|
|Sep. 2009||432 480||4.8||190 244||4.8|
|Oct. 2009||435 767||0.8||191 810||0.8|
|Nov. 2009||437 501||0.4||193 411||0.8|
|Dec. 2009||448 633||2.5||197 393||2.1|
|Jan. 2010||462 862||3.2||196 300||-0.6|
|Feb. 2010||457 637||-1.1||193 152||-1.6|
|Mar. 2009||478 594||4.6||261 815||35.5|
|Apr. 2010||490 176||2.4||251 189||-4.1|
|May. 2010||495 424||1.1||252 438||0.5|
|Jun. 2010||501 271||1.2||260 152||3.1|
No new “swap agreements” between the Norwegian Government and banks, where banks can exchange covered bonds with treasury bills have been made since December 2009. This is due to a change in government policy as the financial markets functioned more normally in Norway by the end of 2009.
Covered bonds are bonds conferring a preferential claim over a cover pool consisting of public sector loans and loans secured on residential property and other real property.
The statistics is now published as Banks and mortgage companies.