Denmark's $450 Billion Mortgage Market Tests Extreme Pricing
- Danes may soon pay just 1.5% for 30-year bond-backed loans
- Foreign investors have hoarded the bonds amid uncertainty
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Danes may soon be able to get 30-year home loans at just 1.5 percent. That’s considerably less than many sovereign states pay to borrow for that period, including the U.S. government.
It’s not the first time Denmark’s mortgage-backed covered-bond market --the world’s biggest -- has tested such extreme levels. It tends to occur when investors from Germany to Japan worry about how to get reliable returns during unnervingly unpredictable times.