Denmark has not been among the quickest European countries to embrace the joys of securitization, but perhaps the Danes are catching on. Unibank recently became the first Scandanavian bank to arrange a multiseller asset-backed commercial paper conduit.
Advances from notes issued by the conduit, called Viking Asset Securitization Ltd., will be used to purchase receivables or securities from highly rated organizations. The first to go into the pot was the purchase of $92 billion of a triple-A rated wrapped CBO transaction. Credit enhancement for the program is in the form of a letter of credit and a liquidity facility provided by Unibank.