DLR Kredit will align its sales to coincide with those of its peers when the next Danish auction season begins in November, with the issuer having attracted weaker interest when finishing off the latest round of auctions this week. Meanwhile, Nykredit had Skr50bn of orders for a Skr10.3bn sale.

DLR Kredit sold Dkr16.075bn (Eu2.16bn) of short dated bullets, Dkr15.6bn of this in the one year maturity.

Pernille Lohmann, investor relations manager at DLR Kredit, said that liquidity had dried out by the time of its auctions, from Tuesday to yesterday (Thursday). Its Danish peers completed their sales over the previous fortnight.

“There wasn’t that much interest but we were prepared for that,” said Lohmann. “Bid-to-covers were not very high, around two times, but the spreads were OK.”

The level of demand compares with bid-to-covers as high as 6.05 times for the first auction on 16 August, from Nykredit Realkredit.

“It’s not optimal coming when everyone else has finished,” said Lohmann. “Next time we will be aligning ourselves with the others.”

Meanwhile, Nykredit Realkredit drew Skr50bn of orders when it sold Skr10.3bn (Eu1.18bn, Dkr8.81bn) of one year SDOs backed by Swedish mortgages in its third such sale on Thursday of last week (August 29).

Nykredit Realkredit a year ago began syndicating its Swedish krona issuance in a move designed to bring its sales closer to the model used by Sweden’s domestic issuers. In September 2012 it sold Skr5bn and then held a further sale in February this year.

After announcing the new issue of one year covered bonds on Tuesday of last week, leads Danske, Nordea and Nykredit Markets launched the transaction last Thursday morning with initial price guidance of mid-swaps plus the low to mid-20s. Some Skr25bn of orders were placed within 10 minutes of the books being opened, and guidance was tightened to 20bp-22bp over. It was revised further, to 18bp-20bp, when demand had grown to Skr50bn within half an hour, before the pricing was fixed at 18bp over on the back of a total order book of Skr56bn.

“The awesome demand for the consecutive Nykredit Realkredit one year Swedish krona refinancing transactions is a clear sign of the issuer having achieved broad acceptance for this short term product with the domestic Swedish investor community,” said Morten Bækmand Nielsen, head of investor relations at Nykredit Realkredit.

He noted that the pricing achieved had also come in since the last sale relative to Swedish paper, with the February sale having been priced at 33bp over mid-swaps. He said that comparable Stadshypotek paper, for example, was trading at around 5bp through mid-swaps and had been at a similar level in March.

“The spread trend versus our Swedish peers has been impressive,” said Bækmand.

Some 30 accounts participated in the transaction, with 35% going to treasuries, 23% to investment funds, and insurance companies and asset managers taking roughly 18% each. Swedish and Danish investors took 53% and 35%, respectively, with 12% taken by other countries.