Landesbank Baden-Württemberg has on Friday 5 March 2010 released a research report on the Danish Mortgage Covered Bonds, with a particular focus on auctions in December 2009.

The Research Paper "Danish Covered Bonds Auctions - one becomes three" concludes i.e.:
 

• The Covered bonds owner are protected against most risk elements by the pure pass-through structure due to the Danish Mortgage Model
• The euro-denominated bonds are attractive for non-Danish investors, because they are eligible as collateral and repo transactions with the ECB

The report also provides a background on auctions mechanisms and risks, along with a description of its magnitude and the trend away from only one auction period in December towards several throughout the year.

You can download the research paper here (246 Kb).