(Repeat for additional subscribers)
May 23 (The following statement was released by the rating agency)
The vast majority of nearly 200 delegates who attended
Fitch Ratings' 'Viking Tour' events this month said that sovereign support for
domestic systemically important banks (D-SIFIs) in the Nordic region remained as
likely as before, or at least still highly probable, despite the coming
resolution tools being introduced to deal with failing banks.
Over the three events, held in Copenhagen, Helsinki and Stockholm from 7 to 9
May, just 2% to 7% of delegates thought new resolution tools would make
sovereign support less likely for D-SIFIs.
The majority of delegates (spanning 48% to 62% over the three events) also said
they expect the Nordic high-yield market to continue growing and that high-yield
bonds would establish themselves as a permanent funding source. Whilst most
believed that Nordic high-yield documentation would converge towards the
international standard, a significant number (from 25% to 43%) also thought that
the Nordic standard would prevail as it is easy to use.
Delegates in Copenhagen were asked their views on the country's new mortgage
bond law, with over two-thirds saying it would address liquidity risk but not
the underlying market structure resulting from a large volume of short-term
mortgage bonds in Denmark.
193 delegates attended our 'Viking Tour' event series this year.
"Viking Tour 2014 Credit Conference May 2014 - Ask The Audience Poll" is
available at www.fitchratings.com or by clicking on the link below.
Link to Fitch Ratings' Report: Ask the Audience - Viking Tour 2014