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 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 transactions
You can read more about our transactions in the reports listed below.
Last updated on 9 April 2010