Auctions are now spread over the year, business models and product ranges are being adjusted, and pricing structures are being changed in order to give borrowers incentives to choose products with lower refinancing risk. All these initiatives make positive contributions to the sustainability of Danish mortgage credit. But the system still involves considerable refinancing risk.
In 2014, bonds linked to adjustable-rate loans totalling more than kr. 750 billion are currently set to fall due, and the auctions towards the end of the year will be of more or less the same size – just over kr. 400 billion – as the auctions in December 2008.