Denmark: Sovereign Debt,Bank CDS

Credit, Event Driven/Special Sit, Macro


SHORT — Denmark: Sovereign Debt (10 year at 1.6%), LONG —  Danske Bank CDS (at ~120bps)

Highlights

The presenter reviewed how Denmark has been considered a safe haven trade for some time. The country is part of the EU and maintains a peg to the Euro, but all assets are outside of the EMU. He believes there is an imbalance in the Danish economy, and they have had to raise rates to maintain the peg with the Euro. He provided a number of macro data-points supporting his bearish stance on the Danish economy and its sovereign debt, including:

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Idea Discussion

Commentor 1 - 2 weeks ago

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