Liquidity Losses Disrupt $450 Billion Mortgage Market in Denmark

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Residential homes and apartments in the Nyhavn district of central Copenhagen.

Photographer: Freya Ingrid Morales/Bloomberg

In the country with the longest history of negative rates, many people are now being paid to take on a mortgage. That helps Danes keep the rich world’s biggest debt burden in check. But the covered bond market on which they rely is facing some fundamental changes that are seriously eroding liquidity.

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