Swedish Securities: Decrease in Interest-Bearing Debt Noted in September 2023

In a recent statistical release by Statistics Sweden (SCB) on October 18, 2023, the total Swedish interest-bearing securities debt stood at SEK 9,910 billion at the end of September. This represents a decrease of SEK 95 billion compared to August, primarily attributed to the strengthened Swedish krona, especially against the euro.

Key Points:

  1. Overall Debt Composition:
    • The interest-bearing securities debt comprised 77% in bonds and 23% in money market instruments as of September.
    • Both money market instruments and bonds witnessed a reduction in debt, with decreases of SEK 86 billion and SEK 9 billion, respectively.
  2. Foreign Currency Denominated Securities:
    • A substantial decrease of SEK 126 billion was observed in securities denominated in foreign currencies.
    • The annual growth rate of the total securities debt was 9.2%, showing a 0.7 percentage point decrease from August.
  3. Monetary Financial Institutions:
    • In August, monetary financial institutions led the reduction in securities debt, with a total decrease of SEK 114 billion.
    • Both secured and unsecured securities decreased by SEK 43 billion and SEK 71 billion, respectively.
    • The decrease was mainly attributed to securities in foreign currencies, reflecting the strengthened krona against the euro and net maturities in other foreign currencies.
  4. Outstanding Amounts and Maturity Structure:
    • Securities totaling SEK 2,726 billion are set to mature within the next six months, with over half denominated in foreign currencies, notably dollars and euros.
    • Monetary financial institutions contribute significantly to the upcoming maturities, accounting for over half of the total at SEK 1,223 billion, predominantly in foreign currencies.

This data provides insights into the dynamic landscape of Swedish securities, showcasing the impact of currency movements and the role of financial institutions in managing the country’s debt profile.