Covered Bond Markets at a Glance: Sweden

We are releasing a series of reports summarising the covered bond (CB) market in different countries across Europe and providing insight into the key characteristics affecting each market. We're kicking off the series with a look at Sweden, one of the top five countries in terms of CB market size.

Key highlights include:
-- Swedish entities have granted more than SEK 4.5 trillion (equivalent to more than EUR 400 billion) in mortgage loans to Swedish households, collateralised mainly by single-family dwellings, tenant-owner apartments, and farm properties. Close to 50% of residential mortgage loans are financed through CBs.
-- The Swedish CB market has traditionally been a hard-bullet market, meaning that CBs do not benefit from any maturity extension. However, this trend changed after the implementation of the new law in 2022 and the market is trending towards a soft-bullet structure, aligning with the majority of European countries.
-- The vast majority of mortgage loans included in the cover pools are residential.