Diversified exposure to the Swedish local government sector – AAA/Aaa, LCR Level 1, zero risk weight
- Explicit, irrevocable, unlimited, joint and several guarantee from owners. Local governments have constitutional right to levy income tax on citizens.
- Investors can make a claim on any, or all, of the guarantors without a court order.
- BIS 0% risk-weighting. LCR Level 1 in the EU, Switzerland, UK, Singapore and US*.
- Regulated by Swedish FSA. Securities issued by Kommuninvest equal to government risk. (FSA clarification in Investor Factbook).
- Monetary policy counterparty to the Riksbank and member of its clearing and payment system RIX.
- Eligible as collateral with NasdaqOMX.
- Eligible as collateral with a large number of central banks, including the Federal Reserve.
- SLGs cannot be declared bankrupt
* Regarding US LCR Kommuninvest considers itself at same level as sovereign issuers, and eligible as Level 1 at investor discretion. Effective from 1 January 2015.
Documents that contains in-depth information on Kommuninvest and the Swedish local government sector.