About the author

Jacob Wolinsky

Founder and CEO of ValueWalk.com (the “Site”) is a web site owned by VALUEWALK LLC, a New Jersey limited liability corporation. I am the former VP of business Development of SumZero, LLC, the world’s largest community I have prior experience in a value based pe firm focused on PIPE transactions in micro-cap companies, and at a value based research firm, which focused on smid caps.

  • Poul


    Your contribution says it all.

    By all means place you money on the belief that the Danish mortgage system will collaps.  Hope you can bear the losses.

  • Thomas Borgsmidt

    Oh yes it does!
    The fact is that the mortgage bonds are (were) normally announced distributed on the MFI sector and the MFI sector MINUS own issues. That has been working on and off for the past two years with billions in monthly correction years back.

    The fact of the matter is that Danske Bank buys Realkredit Danmarks bonds.

    You know: The cup of coffee I make myself is more than the 1000 USD worth I pay myself.

    It is so bad, that Nils Bernstein has publicly rebuked Danske Bank at “Realkreditforeningens Årsmøde”.

    Danske Bank buys their own bonds and finances them with 3 month borrowings to keep the interest rate on the bond down: They KNOW that their debtors can’t pay interest nor principal.
    The problem has since june 2011 been so bad that Danske Bank has gone to financing with ultrashort tomorrow/next.

    Note that the secured 3 month and tomorrow/next reached panic hights end October – and the quotation of secured 3 month stopped 2 or 3 weeks ago.
    Another point of interest (or rather 3) is the violent jumps in the interest rate of the 5 year (green double line) sovereign bond in July and August.
    A possible take on that is that Danske Bank (and presumeably Nykredit) was so seriously strapped for cash, that they had to dip into the emergency liquidity fund of sovereign bonds.
    Buyer? Wild guess: ATP? It fits their liquidity profile – as the pensions are paid by the employers.
    Now there is no love lost between Danske Bank and ATP – and (my guess) is that ATP couldn’t see any reason to lend Danske Bank money against sovereign bonds – but (at a price) they would buy them.

    I think You should loose that attitude: You are not in any position to lecture about the Danish Real Estate Bond – which is one of the most raped animals for the last 10 years – and now on the slap awaiting forensic autopsy.

    Your contribution is just an echo of the totally discredited bleating of Ane Arnth Jensen from RKR. I never saw a more humiliating performance than just before last Chistmas by Rohde form ATP. She looked like a cow with indigestion.
    By the way: How are things in BRF? Letting You use the toilet, as the stench from Your cubicle became to vile?

  • Poul

    “It is very difficult to get accurate figures on the real lending of
    Danske Bank, as the National Bank is not alltogether certain how many of
    the realestate bonds are in the possesion of the issuer”This makes no sense if you know the Danish mortgage system.

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