FactSet, a provider of integrated financial information, analytical applications, and industry-leading service, has launched content and analytics for Danish covered bonds across its distribution channels, including the FactSet workstation. The company is working with Scanrate, a leading provider of fixed income software, models, and data for the Danish bond market, to deliver increased coverage of the Danish market.
“Denmark is one of the most secure property markets in the world, and we are already seeing demand from fixed income clients looking for more flexible assets in the hunt for yield,” says Carl Cedstrand, Vice President and Regional Director, UK and Nordics, FactSet. “We are providing a unique content set thanks to our work with Scanrate, which is one of the few companies that offers such detailed coverage of the Danish bond universe.”
One third of the EUR553 billion Danish bond market consists of 20 to 30-year, pass-through, fixed-rate covered mortgage bonds, which have prepayment features similar to pass-through mortgage-backed securities issued in the United States. Unlike European sovereign debt and the upcoming bonds set to be issued by the European Union, which are mostly in negative yields, the AAA-rated Danish mortgage bonds still offer interesting return potentials for investors able to analyze and manage potential prepayment risk. Consequently, foreign holdings of Danish fixed rate mortgage bonds have doubled to 34 percent over the past five years.
The addition of Scanrate to FactSet means clients will be able to access:
reference data, prepayment history and market prices for the full range of Danish bonds; daily updated prepayment and valuation models covering all aspects of the Danish bond market; option adjusted risk measures and key rates; projected cash flow forecasts and scenario analysis; and performance attribution.
“The Scanrate models may be used for both end-of-day reporting and interactive analysis,” says Svend Jakobsen, CEO, Scanrate. “The full integration with FactSet tools allows you to analyse how the risk and return characteristics of Danish mortgage bonds fits into your global fixed income portfolio.”