The Danish Mortgage Bonds market has changed dramatically within the last 2 years with the introduction of many new types of mortgage bonds. Because of this, Reuters and ScanRate have decided to extend the coverage of the DMBS Service. As of today the service covers both the traditional fixed-rate callable MBSs and the new generation of bonds, such as the float-to-fixed and capped floaters called FlexGaranti, RenteMax and BoligX, broadly defined as ad-justable rate mortgages, abbreviated ARMs. In addition to this, the service have been extended to cover liquid non-callable bullet bonds, abbreviated NC.
The new ARMs are valued in the same setup as the fixed-rate callable MBSs. This means that all sensitivity measures are directly comparable.
In this way, the DMBS Service has been changed from focusing on a particular type of bond to cover the entire market for DKK-denominated mortgage backed securities. The coverage will be increased from 529 bonds with a nominal value of DKK 710 bill to 623 bonds for a nominal value of DKK 1.3 trillion. In other words, the coverage measured in DKK has almost doubled.
For the extension of the coverage, a number of new chains have been created.
| 0#DKARM=DMBS |
(ARM) for the float-to-fixed and capped floaters bonds |
| 0#DKNC=DMBS |
(NC) for the non-callable bullet bonds |
where the latter chain has the following sub-chains for each issuer:
| 0#DKNYKNC=DMBS |
NYK - non-callable bonds issued by Nykredit |
| 0#DKRDNC=DMBS |
RD - non-callable bonds issued by Realkredit Danmark |
| 0#DKBRFNC=DMBS |
BRF - non-callable bonds issued by BRF Kredit |
| 0#DKUKNC=DMBS |
UK - non-callable bonds issued by Nordea Kredit |
| 0#DKDKNC=DMBS |
DK - non-callable bonds issued by Danske Kredit |
and chains for each coupon:
| 0#DK2NC=DMBS |
non-callable bonds with a 2% coupon |
| 0#DK4NC=DMBS |
non-callable bonds with a 4% coupon |