The cover pool comprises mortgage loans with low loan-to-value (LTV) ratios when compared to other specialized mortgage lenders in the Nordics. The program benefits from a public commitment to maintaining an overcollateralization level consistent with a 'AAA' rating. Interest rate risk arising from the predominantly variable interest paying assets and the fixed-rate paying covered bonds is partially mitigated through interest rate swaps. The concentration of mortgages in the South of Finland, which we have considered in our determination of default frequency. About 61% of the pool comprises housing companies, which we view as a higher risk to the program's creditworthiness than residential mortgages. Obligor concentration within the sub portion of housing company loans, with the largest 10 borrowers representing 3.6%
