Engelsk

The Danes' appetite for mortgage loans without instalments was renewed in 2020, where the total mortgage debt without instalments grew by kr. 30.9 billion. Mortgage loans without instalments were introduced in 2003 but debt without instalments has in general been declining since 2012. The change in 2020 is thus the first significant increase in many years and the largest increase since 2011.

The Danes' annual mortgage loan expenses still fall and have now reached on average kr. 15,532 per borrowed million. Kr. 7,450 of this amount is interest payments to the bond investors, and kr. 8,082 is administration fees to the mortgage credit institution.

This paper analyzes the role of underwriters for issuers of corporate bonds. The results suggest that – in terms of issuance costs – bond issuers benefit from using underwriters they have used before, but, at the same time, this exposes the issuer to a credit risk spillover from the underwriter.

The activity in foreign direct investments (FDI) was low in 2020. Danish companies' outward FDI increased by kr. 5 billion, while Danish inward FDI decreased by kr. 10 billion.

Households' savings increased significantly during the first wave of the corona pandemic in Denmark and several other countries. This Economic Memo finds that the higher savings in Denmark were driven by restrictions rather than precautionary consumers. Precautionary savings have so far been relatively limited and smaller than during the financial crisis. (Memo available in Danish only).

The government budget developed better than expected in 2020. The Danish central government debt amounted to kr. 536 billion, equal to 23 per cent of GDP at the end of 2020. The course of the covid-19 crisis has clearly highlighted the importance of the central government having access to a broad and diversified investor base through multiple financing channels. Despite periods with market turmoil, domestic government bonds were sold at record low yields. On average, nominal government bonds were sold at a yield to maturity of -0.33 per cent p.a. and an average maturity of 11.6 years. Interest costs on the central government debt totalled 0.7 per cent of GDP.

We construct measures of physical and transition risks by conducting textual analysis of climate news. Using U.S. stock prices, we find that only the short-term risks elicited by the political debate are priced. Longer running risks elicited by news on international summits, global warming and natural disasters are not priced.

We construct proxies of physical and transition risks by conducting textual analysis of climate news. Using U.S. stock prices, we find that only the short-term risks elicited by the political debate are priced. Longer running risks elicited by news on international summits, global warming and natural disasters are not priced.