Dollar Investors Coveted in Denmark as Swaps Expand Funding Base

Denmark plans to make more regular use of currency swaps to expand its funding base and target dollar investors in a strategy the debt office bets will save it money.

Denmark, which pegs the krone to the euro, is now taking a more “neutral” position on its foreign borrowing after previously relying on Europe’s single currency, said Ove Sten Jensen, head of the government’s debt management office at the central bank in Copenhagen.