Securitisation is a financial technique in which financial assets such as loans are used as collateral backing for issuing credit linked notes or credit default swaps. Illiquid assets are thereby turned into tradable, liquid assets, and credit risk can be transferred to the capital markets.
Securitisation is a cost-effective way for banks to hedge credit risk on loan portfolios and thus reduce risk weighted assets.
Danske Bank uses securitisation to manage risk weighted assets and capital ratios. The first transaction was made in December 2005.
In 2007 Danske Bank entered into a number of public and private securitisation transactions as part of the funding package financing the Sampo Bank acquisition.
Public transactionsYou can read more about our transactions in the reports listed below.
| Mermaid 2007-1 (October 2008): Download pool report (PDF 41KB) |
| Prime Bricks 2008-1: Available on www.kfw.de (search by name) |
| Prime Bricks 2007-1: Available on www.kfw.de (search by name) |
| Provide Bricks 2007-1: Available on www.kfw.de (search by name) |
| Provide Bricks 2005-1: Available on www.kfw.de (search by name) |
Last updated on October 27, 2008