Arbejdernes Landsbank a small but resilient domestic Danish lender

Great Relval opportunity in a very small and new issuer in the EUR SNP space

Highly rated and conservative and predictable business model in domestic retail banking in one of the few remaining AAA countries

Eventual upgrade potential and further SNP issuance potential further building up a curve

Relval example ARBEJD 3.625% of March 30 (call May 29) against DANBNK 4.75% of June 30 (call June 29) :

• both rated Baa1 with Moodys
• same duration and SNP structure
• 70bps pick up in z spread
• Take out 6 points in cash price from 106 to 100
• ARBEJD could tighten a leg further if a third EUR SNP bond gets issued

EUR SNP ARBEJD 3.625% VS DANBNK 4.75%

Source: Bloomberg, MUFG on 23/05/2025