Photographer: Kristian Helgesen/Bloomberg

Oil Crash Seeps Into Norway's $120 Billion Covered Bond Market

Updated on
  • Mortgage lender turns to other debt to fill collateral pool
  • Use of covered bonds increases risks of cross-ownership

Amid a combination of bonds coming due and rising liquidity needs, Norway’s second-largest issuer of covered bonds, SpareBank 1 Boligkreditt, is using fewer home loans to backstop its roughly 181 billion kroner ($22 billion) in outstanding debt.

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