Danish mortgage bonds prove resilient yet again

The Danish mortgage bonds market has shown its resilience thus far to the Coronavirus crisis that has swamped Europe's capital markets, sending equity prices to lows not seen since the global financial crisis. However, as suggested by data from FE fundinfo, while indices such as the FTSE 100, CAC 40 and DAX 30 have been falling rapidly in recent weeks, the Danish mortgage bond asset class (covered bonds) has proven remarkably resilient - just as it did the morning after Lehman Brothers went bust. According to trade association Finance Denmark: "No Danish mortgage bank has ever default...