Stadshypotek Will Introduce New 5-Year Loan

Published 11/04/2013, 05:44 AM
Updated 05/14/2017, 06:45 AM

Starting on Monday, 4 November (depending on market conditions) Stadshypotek will start introducing a new 5Y loan (SE0005498300) maturing on 19 December 2018. The coupon rate is set to 3%. As the new loan is set to become the new 5Y benchmark loan, we expect the loan to relatively quickly reach benchmark volumes.

In the past years, supply has been one of the main drivers for pricing. Somewhat surprisingly, spreads versus swaps for longer dated covered bonds in SEK have widened somewhat in the past weeks. We think current levels provide a good entry level and continue to recommend extensions on the mortgage curves.

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