Issuer Presentation - Nykredit
Issuer Presentation - Nykredit
Issuer Presentation - Nykredit
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Increasing popularity of ARM’s, but homeowners have proven quite<br />
resistant towards rising interest rates<br />
� Danish homeowners increasingly<br />
choose ARM’s to reduce borrowing costs<br />
� Majority of homeowners are still<br />
protected against raising interest rates<br />
� Interest rates are tax-deductible<br />
� <strong>Nykredit</strong> only grants loans on the basis<br />
that the borrower can service a fixed<br />
rate loan<br />
� Danish homeowners’ refinancing risk is<br />
still substantially lower than in other<br />
Nordics countries<br />
Source: Association og Danish Mortgage Banks, <strong>Nykredit</strong> Markets<br />
% of mortgage loan stock<br />
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
Fixed rate loans, % of stock<br />
70<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
0%<br />
Sweden<br />
Finland<br />
Denmark<br />
1-2Y ARMs 3-4Y ARMs 5-10Y ARMs<br />
Capped floater Fixed rate<br />
2008 2009 2010 2011 2012<br />
Norway<br />
Medium to<br />
high<br />
interest<br />
rate risk<br />
Low to<br />
medium<br />
interest<br />
rate risk<br />
No<br />
interest<br />
rate risk<br />
2004 2005 2006 2007 2008 2009 2010 2011 2012<br />
23
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