Essentially all lending that occurs in Länsförsäkringar Hypotek qualifies to be included in the company's covered-bond operations, known as the cover pool, in accordance with the Swedish Covered Bonds (Issuance) Act (2003:1223).
The term covered bonds refers to bonds with preferential rights to the sections of the issuing institution’s assets that are approved by legislation (cover pool). Lending only takes place in Sweden.
On April 30, 2012, the weighted average loan to value ratio (LTV) was 62% and the average commitment per borrower was SEK 864,000. The geographic distribution in Sweden is favourable and collateral comprises only private homes - single family houses, tenant-owned apartments and to a marginally extent of leisure homes.
A stress test of the cover pool based on a 20% price drop in the market value of the loan portfolio, increased the weighted average LTV amounted to 68% compared with the current weighted average LTV of 62% as of April 30, 2012.
From April 1, 2012 the cover pool-information on this home page will be updated regularly on a monthly basis.
Cover pool, April 30, 2012
| Cover Bond Data April 30, 2012 |
|
Swedish mortgages: SEK 88 billion
Substitute collateral: SEK 18 billion
Separate deposit account: SEK 3 billion
Cover pool total: SEK 109 billion |
| OC*, nominal, current level: 27.5% |
| Weighted average Max-LTV: 62%** |
|
Collateral: Private homes only in Sweden
Single-family homes: 78%
Tenant-owned apartments: 20%
Leisure homes: 2% |
|
Substitute collateral, distribution
Swedish covered bonds AAA/Aaa: 79%
Swedish government bonds: 21% |
|
Weighted average Max-LTV, %, Collateral
Single-family homes: 61.1
Tenant-owned apartments: 63.8
Leisure homes: 57.6 |
|
LTV-distribution, %, by-start-LTV (ASCB)
0-10% 19
11-20% 18
21-30% 16
31-40% 14
41-50% 13
51-60% 10
61-70% 7
71-75% 3 |
|
LTV-distribution, %, by-end-LTV
0-40% 12
41-50% 9
51-60% 13
61-70% 24
71-75% 42 |
| Seasoning, months: 58 |
| Number of loans: 221,804 |
| Number of borrowers: 101,422 |
| Number of properties: 101,863 |
| Average commitment: SEK 864,000 |
| Average loan: SEK 395,000 |
|
Interest-rate distribution, %
Floating: 55
Fixed 2 - 5 years: 35
Fixed 5 years and more: 10 |
|
Interest-payment frequency, %
Monthly: 91
Quarterly: 9 |
|
Geographic distribution, %
Middle of Sweden: 41
West of Sweden: 22
Stockholm: 15
Southern Sweden: 14
Northern Sweden: 8 |
|
Prior ranks, %
No prior ranks: 95
Prior ranks: 5 |
| Impaired loans: None |
| Dynamic pool: Yes |
| *OC is calculated with nominal values and excludes accrued interest rates. Debt securities in issue in other currencies than SEK are translated into SEK with the swap rate. Debt securities in issue include repurchase agreements. |
**According to the “Maximum LTV (loan-to-value) per property”
calculation method defined by ASCB (Association of Swedish Covered Bond Issuers) with indexed values. |