- FI flows supportive of SEK covered bonds
- Regarding Ingves' SEK comment
MFI flows supportive of SEK covered bonds
February financial market statistics tell a story that we judge as supportive of SEK covered bonds.
In a separate report the FSA says that stricter mandatory amortisation requirements together with other measures have helped to cool down household lending growth. Data confirm that total mortgage loans are of course still rising, but that the pace of growth dampened last year by 18% compared with 2017. Data through February shows that lending continues to moderate. In January-February mortgage loans rose by SEK19bn compared with SEK28bn during the same period in 2018. In our view it is reasonable to expect some continued moderation going forward and this of course affects mortgage lenders’ net funding requirement, for instance in covered bonds.
To read the entire report Please click on the pdf File Below..