Norwegian Sparebanken recently issued a new covered bond, which is a promising investment opportunity for investors. The bond called “Whisper” Offers investors a yield of mid swap +40 bp.
The covered bond is issued by Norwegian Sparebanken and is backed by a guarantee from the Norwegian government. This additional protection makes the bond a safe investment option for investors. The bond is rated AA+ by S&P and Aa1 by Moody’s due to its guarantee.
Investors benefit from an eight-year term and interest paid every six months. The bond is an ideal choice for investors looking for a long-term investment opportunity with a higher level of security.
If you are looking for a safe investment opportunity with an attractive yield, the “Whisper” is the right choice Norwegian Sparebanken bond definitely worth considering.
What are Covered Bonds?
Covered bonds are a special form of bonds issued by credit institutions. Unlike other bonds, covered bonds are secured by a pool of assets of the issuing bank. These assets serve as collateral for the bondholders and thus protect their investments.
In Norway, a number of banks have been issuing covered bonds for a long time. These issuers are mainly the large Norwegian savings banks, which operate nationwide. Issuers of covered bonds enjoy a high reputation in Norway and are known for their solid financing.
Recently one of the Norwegian Sparebanken issued a new issue of Covered Bonds. The special feature of this bond was that it was issued at a so-called “whisper” price Price was issued. This means that the price range for the bond was not publicly announced, but only verbally communicated to potential investors. The price of this bond was “Mid Swap +40 bp”. The “Mid Swap Is a reference interest rate used by banks as a basis for their bond rates.
- Advantages of covered bonds
- High security for investors
- Better credit quality and lower risk premiums for the issuer
- Good tradability on the capital market
On the whole, covered bonds are an attractive investment option for investors looking for a safe and high-yielding investment.
Issuer: Norwegian Sparebanken
Norwegian Sparebanken has been issuing a variety of financial instruments, including now covered bonds, since its establishment in 1822. These bonds provide investors with additional security by guaranteeing mortgages or other assets owned by the issuer.
With a maturity of up to 10 years and an interest rate based on Mid Swap +40bp, Norwegian Sparebanken’s Covered Bonds are an attractive investment opportunity for institutional and retail investors alike.
The issuance of covered bonds demonstrates the Norwegian Savings Banks’ continued intention to diversify its business activities while maintaining a high standard of financial stability and integrity.
- Advantages for investors:
- Guaranteed by assets of the issuer
- Attractive yield through mid swap +40bp
- Long maturity of up to 10 years
- Low default risk
By issuing covered bonds, Norwegian Sparebanken is positioning itself as a trusted partner for investors seeking a safe investment because of the guarantees and long duration.
Norwegian Sparebanken has a long history as a responsible and stable player in the financial market, and the issuance of covered bonds underlines its desire to continue to play a leading role in this area.
Norwegian Sparebanken issues covered bond
Norwegian Sparebanken recently issued a covered bond. This traded in the market at a mid swap of +40 bp. The bond belongs to the covered bond category and is backed by a certain number of mortgages. This type of bond is very popular with investors as it is considered to be particularly safe and reliable.
Issuers generally have good credit ratings and interest rates are based on current market rates (mid swap). In this case, the covered bond was trading at +40 bp on mid swap. To an investor, this offers an attractive return while the risk is relatively low.
Whisper deals are not uncommon in the bond market. These are deals where the terms are not publicly disclosed. Instead, they will only be given to certain investors. In this case, the mid swap was estimated at +40 bp. This indicates that Norwegian Sparebanken likely has a high degree of confidence in its creditworthiness and is willing to offer investors an attractive yield.
- – Norwegian Sparebanken issues covered bond
- – Bond trades at mid swap +40 bp
- – Covered bonds are considered safe and reliable
- – Whisper deals are common in the bond market
- – Norwegian savings banks show confidence in their creditworthiness