New financing of social housing strengthens the market for Danish government securities

Analysis - December 2018 - No. 24

Authors Agerholm, Jens Bindslev
Subject Government debt management; Government debt management; Government bonds; Government security; Credit risk; Buyback; Central government's account; Government guarantee; Issuance
Type Analysis
Year 2018
Published 14 December 2018
In 2018, the central government has purchased all government-guaranteed mortgage bonds issued for financing social housing. The government will also bid for such bonds in 2019. The purchases allow the central government to build up series of liquid government securities and maintain a broad range of on-the-run issues. The government’s interest rate risk is independent of the coupon and maturity of the bonds purchased.