Danish Government and Mortgage Bonds
PensionDanmark's portfolio of Danish bonds is managed internally and primarily consists of Danish government and mortgage bonds. We mainly invest in fixed-rate nominal bonds. Additionally, we supplement with Danish index-linked bonds. These help protect the portfolio against rising inflation, as the bonds' payments and remaining debt are continuously adjusted according to inflation developments. Furthermore, we use derivative financial interest instruments (swaps and futures) to manage the overall interest rate risk in the portfolio.
At the end of 2024, PensionDanmark had invested approximately DKK 41.5 billion in government and mortgage bonds.
Direct Loans with High Security
PensionDanmark's bond portfolio is supplemented with various types of direct loans with high rating (creditworthiness). This part of the portfolio includes loans for various types of project financing secured by Public-Private Partnership (PPP) projects or infrastructure assets, which also have a high level of security for repayment. Other types of loans may be granted to different investment funds with security in the fund's underlying assets. Typically, this type of loan provides an additional return (liquidity premium) to compensate for the fact that these loans are harder to trade than regular publicly listed bonds.
At the end of 2024, PensionDanmark’s investments in direct loans with high security amounted to approximately DKK 5.1 billion.
Credit Bonds
Credit bonds is a collective term for various types of corporate bonds and loans, as well as government bonds from several Emerging Markets countries. At the end of 2024, investments in credit bonds amounted to DKK 61.8 billion.
See PensionDanmark’s list of investment grade, high yield and emerging market bonds.
PensionDanmark’s Investments in Credit Bonds
| Corporate Bonds | Amount | Type |
| Investment Grade Corporate Bonds | DKK 7.8 billion | Corporate bonds issued by companies with high credit ratings, as well as structured credit bonds with high credit ratings. |
| High Yield Corporate Bonds | DKK 20.7 billion | Corporate bonds issued by companies with relatively low credit ratings. |
| Senior Secured Loans | DKK 17.9 billion | Senior Secured loans, also known as Leveraged Loans, are loans to companies where the lending banks have subsequently sold most of the loan to a group of institutional investors. |
| Emerging Market Bonds | DKK 15.4 billion | Bonds from Asia, Latin America, Africa, and Eastern Europe. The majority are government bonds, but investments are also made in corporate bonds. |
External Managers
Slightly above a third of the credit investments are managed internally, while the remaining portion is managed by various external managers. Following the link below, you can find PensionDanmark’s external managers with mandates for investing in different types of credit bonds and loans.