May 23, 2014 / 10:57 AM / 4 years ago

RPT-Fitch: Nordic Credit Markets Expect Bank & Sovereign Links To Remain, Despite Resolution Tools

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May 23 (Reuters) - (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 or by clicking on the link below.

Link to Fitch Ratings’ Report: Ask the Audience - Viking Tour 2014


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