New Crisis Lurks in Cure for Old as Danish Probe Shows Risks

The one-year mortgage bonds that helped homeowners keep up debt payments during the toughest months of Denmark’s recession now pose a threat to economic stability, according to the head of a government commission investigating the causes of the financial crisis.

“There is a risk, and the risk is relatively large,” Jesper Rangvid, a professor of finance at the Copenhagen Business School who’s overseeing an 11-person commission due to release its findings next month, said in an Aug. 5 interview.