Pension funds invest in Nykredit's NEP fund despite higher risk

Increased regulation and security and lower interest rates have enticed Velliv, Sampension and AP Pension to invest around EUR 200m in a new fund by banking group Nykredit. None of the investors are worried that Nykredit lost around EUR 130m on a similar strategy during the financial crisis.

Photo: Olivia Loftlund

Velliv, Sampension and AP Pension are financing Nykredit's new fund, which helps smaller banks meet NEP requirements – specifically, the capital requirements that mean the state does not need to provide assistance if the banks are shut down.

The financing of the NEP requirements will take place through investments in Senior Non Preferred (SNP) bonds.

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